Second-Chance Checking Options

A person's banking history can prevent them from having a good credit history or establishing any credit history because most credit card companies require that a person have a bank account.  Second-chance checking options were developed by some banks to provide an opportunity for a person who has a poor banking performance in the past to establish a good record of banking. The main idea is to graduate from a second-chance checking account to full banking privileges after a defined period. Wells Fargo, BBVA Compass, and Woodforest National Bank offer the top three second-chance banking options.

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  1. How do banks know about your bank history?
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    Your banking history is a part of your financial history. Banks, credit unions, and savings and loan organizations use the ChexSystems records to evaluate a person for a bank account of any kind. You can be denied a bank account because you had a single bad check, bounced one check, or acquired several extra fees due to delinquencies in any bank account you previously had. You are in essence blacklisted from getting a bank account even if you know the banker personally.

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  2. Does the second-chance account have to be made in person?
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    All three of the top second-chance banking companies allow you to open a checking account online. You have to provide the second-chance bank with your personal information. The bank will do a credit report that includes a banking report. The process takes only a few minutes to be accepted.

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  3. Can I be rejected for a second-chance bank account?
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    You can be rejected for a second-chance bank account of any kind if there is evidence that you have intentionally made use of previous banking and credit in a manner that is fraudulent. The acceptance rate for people who are attempting in all honesty to repair their banking history and credit history is above 95 percent.

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  4. Is second-chance banking a gimmick?
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    Second-chance banking is an honest and intentional act by some banking organizations to help people who have had bad financial experience in the past to repair the damage they made to their banking and credit history. The banks do intend that the new client becomes a regular banking participant in all their services. The banks expect people who are successful with second-chance banking to be free advertisements for the service in person and on social media.

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  5. How long does it take to graduate to regular banking?
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    Being able to go back to a regular checking and savings account depends on the amount of money that a person keeps in their second-chance account, the number of transactions that are processed per month, the number of withdrawals per month, and any incidents of overdrafts or stop payments. The process usually takes between six months and a year.

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  6. What are the requirements to open a second-chance banking account?
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    You must have a verifiable job, a verifiable address, and a working phone of any kind. You must maintain a minimum balance of between $25 and $50 in each account that you open. You are expected to make more deposits than withdrawals. This behavior is an indication of your desire to become financially secure.

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  7. Is second-chance banking like regular banking?
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    Second-chance banking offers all the benefits of regular banking. A person can have a savings account, a checking account, a debit card, and an ATM card. You are charged a fee that averages $15 to set up a debit card or an ATM card. The number of transactions in any account may be limited on a monthly basis. Online banking is included at no charge.

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  8. What fees are charged to start a second-chance account?
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    You are expected to pay a fee to open any account. The fee ranges from $12 to $15 depending on the type of account. You can be charged a monthly service charge for any account that has a balance below the required minimum. You pay an account closing fee of $20 to $35 if you close the account in less than 180 days after you opened the account.

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  9. Do you get help from the banks?
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    The top three second-chance banks offer automated and personal assistance that is designed to help a person develop budgeting skills, money management skills, and attain credit worthiness. The evidence that a person is doing a good job at money management is reflected in a reduction or elimination of most account maintenance fees.

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