What is a Second Chance Checking account? It is made for people that have made mistakes with their first checking account. This account will enable people to start again and hopefully have a better experience than the other account. Below, I will go over everything you need to know about a Second Chance Checking account.
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Table of Contents
Compare Your Options
A lot of banks out there offer second chance accounts, but not all are built the same. No matter what account you’re looking for, it is important to know all about the fine print. Pay close attention to any fees that come with the bank account, what services that will be useful to you and whether you can convert your second chance account to a regular account down the road.
Normally, banks will give you different financial services that you can take advantage of. Some banks that will give you the opportunity to change your second chance account into a traditional checking account. With every account, it will come with their own terms and conditions to follow.
Financial institutes like PNC Bank and Wells Fargo offers a second chance account for their members. The Foundation Checking account comes with a $7 monthly fee and ATM withdrawal limits of $100. However, after 6 months, PNC Bank might let you switch to a regular account. The Wells Fargo Opportunity Checking account comes with a $10 monthly fee and many features. Plus, it can be linked with a savings account as well.
Check Your Credit Score
Whenever you try to apply for a new checking account, a bank will look at your credit score. While they’re at it, they will also check your ChexSystems profile as well. ChexSystems is a nationwide consumer credit service that most banks use to report a negative account history. This report will determine rather or not a bank will let you sign up for any of their accounts.
Banks will use the three major credit bureaus as a way of gauging whether or not you are eligible for the account. If there are any errors or inaccuracies on any of your reports, you will have the opportunity to dispute them to get it removed or corrected. Otherwise, they can affect your credit.
Check Out Credit Unions
Lots of credit unions will offer you a second chance checking account with several perks that you may not find at a bank. Already, several credit unions have advantages over normal banks.
They are a non-profit organization that mainly focuses on serving members. Normally, credit unions are smaller than your traditional bank, this results in lower overhead costs. In other words, they charge less fees for a better financial product.
Remember, it’s mandatory to meet all of the requirements to join a credit union. Meeting membership eligibility and other conditions will enable you to apply for any financial product you may be seeking. There are other products that credit unions have to offer like: checking, savings, loans, etc.
A second chance checking account is a great fresh start if you messed up on your previous checking accounts. Or, if your credit has several negative reports, this is another way to help fix your score. Keep in mind that you must read through the fine print and more to see if the account has benefits that suit your needs. For more post like this, check out our list of bank guides!