Setting Up A Second Chance Checking Account
The Global economy suffered greatly because of the recent recession. Many people who were under the impression that they are financially secure suddenly found themselves in debt. Over the past few months the economy has started to recover. Despite the recovers the unemployment rates around the world are still quite high.
Many people ended up making mistakes and mishandled their finances. Some people found themselves without jobs and were no longer able to repay their debts and keep up with their payments. Because of the increasing number of defaulter banks have become more cautious and careful about whom they deal with. Several banks have come together to create the ChexSystem and TeleChex list.
When a person fails to make a payment for their debt their names gets added to this list. Once you are on the list you cannot get off the list for five years. The criterion for getting on to the list is quite skewed and therefore a lot times people who should not be on the list end up on it. If you are having difficulty opening a new bank account then this may be because you are on the ChexSystems list. Different banks have different parameters of how they deal with people who are on this list but the fact remains that if you are on the list you are considered to be high risk and banks will hesitate to give you a new bank account. This is where 2nd Chance Banking comes into the picture. Some banks will allow people who are on the list to open a 2nd Chance Checking account. This account will have certain restrictions attached to it since the bank is trying to protect its interst. These restrictions will vary from bank to bank.
Some banks will expect you to open the 2nd Chance Checking account with a hefty deposit and will require a high minimum balance, other might charge a higher rate of interest. There may be other restrictions as well. One of the common restrictions that are applied to 2nd chance banking accounts is the denial of a chequebook. The good thing about a 2nd chance banking account is that it gives you a chance to fix your credit history and get off the ChexSystems list. The inability to open a new bank account can interfere with your financial security. If you need to open a new bank account but are finding it difficult to do so because of a bad credit history, you should look into 2nd chance banking account.
Many people ended up making mistakes and mishandled their finances. Some people found themselves without jobs and were no longer able to repay their debts and keep up with their payments. Because of the increasing number of defaulter banks have become more cautious and careful about whom they deal with. Several banks have come together to create the ChexSystem and TeleChex list.
When a person fails to make a payment for their debt their names gets added to this list. Once you are on the list you cannot get off the list for five years. The criterion for getting on to the list is quite skewed and therefore a lot times people who should not be on the list end up on it. If you are having difficulty opening a new bank account then this may be because you are on the ChexSystems list. Different banks have different parameters of how they deal with people who are on this list but the fact remains that if you are on the list you are considered to be high risk and banks will hesitate to give you a new bank account. This is where 2nd Chance Banking comes into the picture. Some banks will allow people who are on the list to open a 2nd Chance Checking account. This account will have certain restrictions attached to it since the bank is trying to protect its interst. These restrictions will vary from bank to bank.
Some banks will expect you to open the 2nd Chance Checking account with a hefty deposit and will require a high minimum balance, other might charge a higher rate of interest. There may be other restrictions as well. One of the common restrictions that are applied to 2nd chance banking accounts is the denial of a chequebook. The good thing about a 2nd chance banking account is that it gives you a chance to fix your credit history and get off the ChexSystems list. The inability to open a new bank account can interfere with your financial security. If you need to open a new bank account but are finding it difficult to do so because of a bad credit history, you should look into 2nd chance banking account.