Second Chance Checking Accounts

Second chance checking accounts are checking accounts for consumers who are currently listed in ChexSystems or Early Warning Services. ChexSystems and Early Warning Systems are consumer reporting agencies (think Equifax or Experian) for the banking industry. While the two normally go hand in hand, you can have bad credit and still qualify for a prime checking account just like you can have an excellent credit history and be listed in ChexSystems.

While there are options for those who can not get a prime checking account, there are some things you need to know about second chance checking accounts.

1- Restrictions – Most second chance checking accounts are restrictive when it comes to deposits and the availability of funds. For example, your deposit may be help for as long as 14 business days before it becomes available. Use of the funds before they become available could cause some serious financial problems. Some accounts are so restrictive that it actually puts you at risk of bouncing checks and incurring fees (which is probably the true reasons for the restrictions) due to the fact that deposits are held and checks are processed immediately.

2 – Prepaid Credit Cards – While prepaid credit cards are an awesome tool and are an excellent alternative to bank accounts, you need to be watching the fee schedule and cost to carry the prepaid cards.

3 – Scams – A perfect example of this is newbankaccount..net. They claim to offer you a second chance checking account for a fee of $25. What happens is they fill out 2 prepaid credit card applications in your name and then you get approved for a prepaid credit card and not a checking account with check writing priviledges. Also, you have to give your personal information to someone to process your “checking account” information and then that information is sold to other companies.

From their tos (hxxp://www.newbankaccount.net/secure/program/inc/application4b.html) – We are a financial matching service – matching individuals with prospective account products. We will review your information and in our sole discretion, may submit your Application to one or more Banks for acceptance. – So this means that for $25 they “may” process your application. Chances are they will not and will end up taking your money.

So what do I recommend? There are sites that provide free directories of banks that have been reported to offer second chance checking or bad credit checking accounts. There are no guarantees with these sites and the information could have been reported wrong, but these are the best bet right now.

Check out the resources below for more information on second chance checking and bad credit checking accounts.

Second Chance Checking Banks
Bad Credit Checking Banks
ChexSystems Removal