Is a Second Chance Checking Account the Right Choice for You?

1. Is a Second Chance Checking Account the Right Choice for You? If you don't have the best checking account record, i.e., overdrawn your account multiple times or failed to repay payments on time, you could be denied the chance to open a new checking account. Similar to how your credit card score is monitored, ChexSystems monitor your checking account history. Pretty much every bank checks whether a person can open a checking account by reviewing their credit score and checking account records. If you're having difficulty opening a bank account, you may want to consider a second chance checking account to reestablish your credibility with banks. Luckily, there are some second chance banks in North Carolina, which you can look into.

2. Benefits of Opening a Second Chance Checking Account Second chance checking accounts are simple and don't have many perks or benefits since they only offer the most basic services, but these are necessary if you want to improve your checking account record. Just because they’re basic doesn’t mean its all bad. Below are some of the benefits of opening a second chance checking account. 1.You don't need to have the best checking account history. This right here is the most obvious and the most important reason for going for a second chance checking account. It's hard to survive in the current economy without a checking account; employers often require you to have a bank account, need an account to take a loan, and deposit your savings. Having a bank account isn't an option anymore; it's a necessity. 2.Helps you to get a regular bank account With a second chance checking account, you’ll be able to prove to banks that you’ve turned over a new leaf and are reliable. This way, you’ll be eligible for a regular bank account, which will give you access to all the services and benefits that you previously lost. Besides this, other benefits like these checking accounts are accessible to people who've been turned down by other banks, less expensive than depending on check-cashing services. You have the option to monitor your account online or through a mobile app to see when you're running low on balance.

3. Are There any Drawbacks of Opening a Second Chance Checking Account? There are a few cons of second chance checking accounts. You could be charged a monthly fee rather than getting a free checking account. Many of these accounts don't offer direct and check deposit or overdrawn protection, and some accounts require you to have a minimum opening deposit. To not get involved in any second chance banking system, many people prefer opening a bank account in a non-ChexSystem bank, which eliminates this hassle. There are many non- ChexSystem banks in North Carolina that you could go for; however, you'll only be able to open accounts with them since your checking account record will still be poor. If you want to avoid any effort related to opening a checking account, you can also go for a prepaid debit card since that isn’t linked to any bank account. Whether you want to open a second chance checking account or not, this article will hopefully help you understand the benefits and cons of going with either option. Source: https://works.bepress.com/fresh-start-finances/2/