When was the last time you heard about a second chance bank account? Chances are that you have not, especially if you are one of the many Americans who have been affected by the current financial crisis. Thanks to the efforts of Congress, there is now a special banking program that has been established for this purpose. These programs are targeted at those individuals who have suffered financial distress but were able to keep their bank accounts open because they were able to show proof of a significant income. In order to ensure that this type of account truly offers a second chance to those who need it most, we have put together this helpful second chance bank account guide.
It may sound ironic, but those who have a history of financial mismanagement are often the ones who benefit the most from having a second chance bank account. Banks that operate on a more even keel are more likely to grant these accounts. However, there are some banks that will work with those who have had less than stellar credit histories. What you really want to look for is a reputable institution that will help you regardless of your past financial issues.
If you are concerned about how your current banking history will affect your chances of getting a second chance bank accounts due to the current economic situation, you should know that even your past financial behavior can be looked at by these types of banks. This is done in order to determine whether or not your particular financial mistakes have harmed your credit score. Sometimes, these reports come back with scores that are far lower than what you should be dealing with. Fortunately, the average individual can actually fight back against this type of unnecessary damage to their credit by carefully monitoring their credit reports and making sure that their score is going to a more respectable level. After all, it is far better to fix any problems with your credit before they get out of hand.
Unfortunately, many banks have been forced to implement these types of services because of the recent economic troubles. If you have a high credit score, chances are that you will be able to find a number of different second chance bank accounts due to the fact that most standard checking accounts do not come with these types of extra features. In fact, there are only a few different types of services that these different types of banking institutions offer that relate to these special accounts.
One of the first things that you will want to look for when considering the possibility of opening a second chance bank account is how much money the bank charges you. In many cases, these banks will only charge you a small interest rate on the account but will charge you a large annual maintenance fee that will amount to a significant chunk of your savings. These types of extra fees will not appear on your credit report so you should take note of them when comparing these types of banks.
When looking at different banks, you should also consider the type of service that they are offering. While some banks will only offer savings accounts, some of the better ones will also offer second chance checking accounts as well as savings accounts and even electronic checking. Chexsystems will report accounts to this special type of service and you should avoid banks that advertise only one type of checking account.
Also, you may want to look at the different types of products that these banks offer. While it is true that all of the standard checking accounts will offer higher rates and less flexibility than those with a second chance checking account, you will still have a number of different options that can suit your personal financial needs. For example, some of the standard checking accounts will offer higher balances and lower interest rates than others. You should also keep in mind that while some of these accounts will have higher fees and higher interest rates than others, there are a number of different fees that will vary between each of the different types of accounts. If you are looking for more flexibility in the financial aspects of your life, you may want to consider one of these accounts instead of the traditional standard checking accounts.
When you do choose to open up a second chance banking account, it is important to remember that you will need to make at least the minimum deposit. Without the required minimum deposit, your account will not be opened and you will not get started. Make sure that you have a couple of spare hundred dollars available before you decide to open an account. The important thing is that you have at least a thousand dollars available to deposit.