Have you found yourself applying for bank accounts in your local area and online? Due to your circumstances sometimes beyond our control, we might find ourselves not approved for the accounts we apply for.
When this happens, one of the first things we might be thinking about is searching for alternatives. For various reasons, you might have been flagged by ChexSystems when applying for an online or local account or a credit union. If this is the case, you’ll be happy to know that there are alternatives you can take advantage of.
If you weren’t approved for the local or online banks you originally applied for, you’ll be happy to know that you have a plethora of options you can choose from. Plenty of online platforms offer second chance options, and many of these platforms don’t utilize ChexSystems when accepting potential account holders.
Does this sound like a viable option for you? You’ll be happy to know that you can find second chance checking at LetMeBank.com and other online platforms to help you get a grasp on your financial situation without having to go through all of the processes set forth by other local and online banking solutions.
What is second chance banking?
The concept known as second chance banking has been around for a while now and offers banking and checking solutions for people who are unable to get a checking account through traditional means. If you have had financial hiccups in the past, this can disrupt your chances of obtaining an account.
Things as simple as missing payments, over drafting, or closing up an account with a negative balance, can wind up getting you flagged by a system known as ChexSystems, an automated system that detects and flags risky accounts holders. Some banks will even report account holders who meet some of these criteria to ChexSystems which can disrupt their chances of opening a checking account in the traditional sense.
When this happens, people will start looking for alternative solutions. Luckily, such alternative solutions do exist, known as second chance bank accounts, they give people a second chance to help them rebuild their banking history.
When should you think about looking for second chance banking solutions?
If you have found it difficult to open an account through a major bank (either locally or online) due to mistakes you made in the past, like writing a bad check or overdrawing your account, then you might be a great prospect for second chance banking solutions.
Your past banking history, your credit score, and many other financial factors are important things major banks look at when considering you as a prospect for opening an account. If you are deemed a risk or have been flagged by ChexSystems in the past, opening an account might seem impossible. This is where second chance banking solutions really come in handy.
If you are thinking about looking into second chance checking solutions, you should know that there will be a few limitations, such as:
- Lower monthly fees
- You may not be able to write checks
- You may not have overdraft protection
- You might face lower withdrawal limits
If these potential limitations are acceptable to you, then second chance banking might be right up your alley, allowing you to establish a bank account and handle your money while rebuilding your banking history. This can be a major first step and can be a great way to give you the helping hand you need.
Are there alternatives to second chance banking?
There are indeed alternative solutions for people looking to re-establish their history after some hiccups in their financial histories. You could, for example, look into prepaid debit cards, which work just like a regular debit card with the caveat that you pony up the funds to use it prior to being able to spend any money with it.
Many second chance banking solutions even offer you the ability to monitor your money on the go with a smartphone application, just like traditional banking solutions. While you might be faced with restrictions compared to a regular account, you will still be able to manage your money and handle your finances from anywhere.
If you’re faced with issues stopping you from opening a traditional bank account, then looking into second chance checking could be just what you’ve been looking for. Though the features might not be as impressive as a traditional account, second chance banking solutions give you the opportunity to rebuild your records without having to worry about hoarding all of your cash under your mattress, giving you the ability to manage your money even if you have faced some financial issues in your past.