A growing number of people are finding it difficult to open a checking account. Banks are becoming increasingly skeptical before allowing an individual to open an account. Some banks will look at your credit rating and others will look at something known as your ChexSystems score. If these ratings or scores come back too low, then your bank may deny you a checking account. All is not lost, individuals can open an account known as a second chance checking account.
Most people probably know what a credit score is, some number between 0-800 that is calculated based on past credit transactions. However, very few people know what a ChexSystems score is. Basically this score is tallied by a group that works hand-in-hand with several financial institutions. The financial organizations report any misdeeds on checking accounts to a central location. The central location keeps track of all this information, calculates a score, and shares the information with other financial institutions or banks. These banks want to make sure that people don’t abuse the system over and over again.
Second chance checking accounts allow people with low credit scores and low ChexSystems scores to obtain an account. There usually are very few restrictions on these accounts, but a minimum balance is often required, and these accounts may be monitored more closely than other accounts for obvious reasons.
One word of warning when attempting to find a bank that will offer second chance checking accounts. Be careful about sharing your information over the Internet. This is a classic situation where people believe it okay to share their social security number and other information over the Internet. Do not do it, unless you are sure the source is reputable.
Two reputable banks that offer second chance accounts include Wells Fargo and BBVACompass. If you have one of these banks near you, then this is a much better solution than filling out a form with all of your personal information on the Internet.
Once you receive your second chance checking account, make sure to use it wisely. Try not to make the same mistakes you did in the past. There is no telling whether you will receive a third chance.
