Second Chance Banking
Second chance banking is a great way to get another opportunity to manage your finances. It takes a couple of forms, and I'll cover most of those in this Hub so you know what your options are.
The biggest issue that leads to people needing second chance bank accounts is that they've been "blacklisted" by regular banks. This means that you've been put onto the list by a company called Chexsystem. In order for traditional banks to reduce their risk when approving bank account applications, and to protect their own credit score, they reference this system to check if you're on it.
People end up in Chexsystem when they've defaulted on a bank account, "blank enveloped" the ATM, or any other reason their account was shut down on them.
Know that you aren't alone, and tons of people use second chance banking every day!
No Bank? Get a Visa Card - No Monthly Fees w/ our FREE Direct Deposit, Pay bills, get cash at ATMs & shop.
How Second Chance Banking Works
The most common style of second chance banking is through what I like to call "alternative banks." In this situation, you go through a company like Vision Prepaid to get an account. To get a second chance bank account like this, all you need is to be a legal citizen. There is no credit check, no Chexsystem check, or employment verification. The entire application process takes only about three minutes to get approved, and all of your banking materials come in the mail in a few days.
Second Chance Account Features
Each alternative bank is going to have their own set of features that comes with the accounts that they offer. Many of the important ones are standard amongst most of them. These include:
- Direct deposit
- Visa or Mastercard
- Online banking
- Overdraft protection
- Some offer the ability to borrow money
Along with these features, you also gain the ability to do all of the things you can't if you don't have a bank card. These are things like:
- Shop online
- Pay bills online
- Reserve hotel rooms
- Rent a car
- Have an open bar tab :P
Are They Safe? Expensive?
If alternative banks didn't do a good job of protecting your money, they wouldn't stay open for very long! For example, the Vision Prepaid Visa card offers with a zero liability protection against fraudulent charges. Other alternative banks offer very similar protection for your money as well.
What about expensive? Second chance banking is more expensive than traditional bank accounts, but not by much. Most companies offer no monthly fees to those who participate in direct deposit, which only leaves a couple small fees. Be sure to read through the company's terms to figure out what their charges are like, and what you can do to avoid them!
In the end, second chance banking is cheaper than check cashing and a hell of a lot safer than carrying cash around!
Second Chance Banking Is Not Permanent
Keep in mind that you're not going to be blacklisted from regular banks forever, so your second chance bank account is only going to tide you over until then. People are usually cleared from Chexsystem in 3-5 years, so use second chance banking until then as a safe and reliable way to manage your money.
Other Banking Hubs
- Getting Fast Cash
Getting fast cash is much easier than you probably think. It can be as easy as taking all of the extra stuff around your house and heading to the pawn shop, or taking out a small, short-term loan. Life...
- How To Get Cash Fast
When you're in need of fast cash the pressure is high and stress is at the boiling point. The good news is that there is a few easy ways to put cash in your pocket today. I follow a three step process...
- Same Day Cash
If you need same day cash you have a few options for borrowing the money today. In this Hub, I'll take you through the most common ones so you can figure out which gels with your situation. There are lots...
- Second Chance Bank Accounts
Second chance bank accounts are one of the best ways to get a fresh start if you have bad credit history. Banks these days look at a persons credit history to determine whether they are suitable for a bank...
- Instant Online Loans - How They Work
Finding instant online loans is easy, almost too easy, and can put you in quite a bit of trouble should accept it without planning out how you are going to pay it back. The premise of these loans is...
More by this Author
Finding the best acne body wash is easy and will help you clear your skin. Body acne, bacne, or whatever you want to call it is embarrassing. Find the best body wash for you right here!
Title loans are risky business, and are normally a bad choice. However, people still use them, so it's important to discuss how they should be used, and what to watch out for when applying for them. In case you don't...
Learning how to get rid of slugs and get rid of earwigs at the same time is easy. Earwigs and slugs are two of the most common garden pests. They can go unnoticeable in small amounts, but when there are a lot...
No comments yet.