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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View the Alternatives
There are many banks that offer second chance accounts. However, each bank has a different way of having their checking accounts work. It’s very important to do your research on the different options you have before making your final decision. Keep a close eye on the different fees and services that these banks have.
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
Majority of the time, a bank will look at your credit score when you apply for a new account. 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.
There are three major credit bureaus that you can use to check your credit score. Banks will be paying attention to your profile reports when you apply for any kind of account. When you check your credit and see any mistakes in your report, you have the right to dispute, remove, or correct the mistake. Since having a bad credit is looked down on by banks, it’s better to have the least amount of negative reports.
Different Credit Unions
Lots of credit unions will offer you a second chance checking account with several perks. Typically, credit unions has more advantages than a normal bank does. 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. There are other products that credit unions have to offer like: checking, savings, loans, etc.
Conclusion
A second chance checking account is a great fresh start if you mess up on your other checking account. Or, if your credit has several negative reports, this is another way to help fix your score. However, be sure that you read through all the fine print, and see what kind of perks they have to offer.
Normal banks will come with monthly fees that can or cannot be waived. Meanwhile, a credit union normally won’t charge you large fees for their accounts.
