Have you just been denied a checking account? In that case, it might be time for you to consider financial institutions which offer second chance banking. Odds are that you\’ll be in a position to open a second chance checking account which allows you to enjoy virtually all the positive aspects of a typical account for checking.

Second Chance Checking Accounts – Exactly What Are They

Second chance checking accounts are for folks who have been denied a checking account the regular way. The availability and use of these accounts are likely much more common than many people know. Most are people who may have been caught in a bad situation and then received what is know as a record on the ChexSystems databse. Last year, my colleague Doreen closed a checking with her former bank after she was not able to resolve an overdraft fee situation. Unfortunately, without a satisfactory resolution with the former bank, she found that she was denied the chance to open a new account with another bank.

ChexSystems is like a consumer reporting agency for checking account activities. They are similar to what Equifax or Experian are for credit history however they concentrate only on retaining records of banking account related activities. If you had shut down an account with an outstanding overdraft fee, that info will be reported to your ChexSystems file and shared with other ChexSystems member banking institutions.

This record typically lasts for 5 years. So in the meantime, if you have been affected, you need to find a bank or credit union that will overlook the record and still accept your application for a new checking account. The good news is that there are many such banks.

Getting A Bank Account

A number of banks have procedures which deny a brand new account to you if they see the unfavorable record on your file. However, you\’ll find a lot of others which will either provide you with a second chance account, or else a normal account even, based on a case by case basis. So you could be denied checking account at one branch, but not at another, both of the same bank! What you need to realize is that ChexSystems is just an information system, and the banks have policies in place on whether of not to open up an account for someone with a ChexSystems record.

Numerous times, it\’s also a case by case basis and the department supervisor has the authority to make any decision. A few banks are also more lax than others in the way they approach this. Overall, unless the bank has a demanding policy to refuse anyone with even the slightest ChexSystems flag, you still stand a chance. Particularly if you present a coherent case, and can show that you are a reputable customer, odds are great that the application will be accepted.

So do not allow the case of a denied checking account application keep you feeling discouraged. Throw your net wider. Take the time to research on-line, think about smaller banks or credit unions. You will find banks which are open and prepared to work with you.

Author Bio: If you have been denied a checking account and want to see if second chance banking is right for you, check out the http://www.secondchance-checkingaccounts.com/ website for articles and reviews on second chance checking accounts and non-ChexSystems checking.

Category: Finances
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