Reasons, You Should Opt to Open an Account with Second Chance Banks
Chexsystems is a service that provides banks and other financial institutions with consumer credit and account management reports. Banks will rely on information kept by the ChexSystems when you apply to open an account with them. A negative report will make it difficult for you to open a new deposit account. Such as making late payments to your account fees. Second chance banks offer you the opportunity to avoid these struggles. Here are reasons you should opt to open an account with second chance banks.
Chexsystems usually report only on your negative rating and ignore the positive aspects. Therefore, if you have always been making your bank account fee payment on time and you delay one time. The ChexSystems will record the adverse action. The best approach is to find banks that don’t use ChexSystems. Therefore, being able to have an account without the delays of verification through checking your consumer credit history.
Second chance banks allow you to overcome the challenge of having a bad banking history for a long time. It takes five years to clear a negative banking record and sometimes even longer. It is understandable that you may have problems paying your account fees for a short duration. After the first year you streamline your financial activities and ensure that the account allows the minimum balance. The challenge is that you will bear the negative banking history of the first year for five or more years. Therefore, you will struggle opening an account with another bank. Unless you choose a no-ChexSystems bank.
Having an account with banks that don’t use ChexSystems will prevent your banking records being shared with other parties. When you agree to the terms of the ChexSystems, you allow the services company the right to sell your information. Such information may cause you to be denied services. To mitigate against this risk, you should choose the banks that do not use ChexSystems. Only you banks have accessed your banking transactions.
Second chance banks offer you the opportunity redeem yourself. When opening your first account, you may not have understood the fees you had to pay. They are usually excited to have a bank account and a credit or debit card. Later you realize that the banks have high fees that you struggle to pay making you have a negative banking history. Banks the don’t use ChexSystems provide you a chance to overcome your previous banking shortcomings.
For parents, you should select a no-ChexSystems bank for your son or daughter first account.