Reasons, You Should Opt to Open an Account with Second Chance Banks
The essence of ChexSystems is to keep individual banking history. Banks will rely on information kept by the ChexSystems when you apply to open an account with them. A negative report will make it difficult for you to open a new deposit account. For instance, if you were unable to maintain the bank’s account minimum balance. If you are struggling with this problem, you should consider choosing a bank that doesn’t use ChexSystems. Here are reasons you should opt to open an account with second chance banks.
Many of the banks using ChexSystems will focus mainly on your negative history and by-pass the positive credits. Your previous banking activities will not hinder you from opening an account with second chance banks. The ChexSystems will record the adverse action. Thus you will need to identify the second chance banks near. Thus, you will avoid the hassle of having to wait for days for the bank to verify your history to open an account for you.
Banks that don’t use ChexSystems offer you the chance to avoid have a negative consumer credit report for an extended period. It takes five years to clear a negative banking record and sometimes even longer. It is understandable that you may have problems paying your account fees for a short duration. After the first year you streamline your financial activities and ensure that the account allows the minimum balance. It is unfair to have to carry the burden of a bad consumer credit report for five or more years whereas the mishandling of the account was just for a few months. For that duration you will be unable to open a new bank account. Therefore, you should opt for second chance banks.
To keep your banking records private you should opt for banks that don’t use ChexSystems. Chexsystems have the rights to share your banking records with other third parties. The challenge is that these records can be used to disadvantage you. To avoid this from happening you should opt for no-ChexSystems banks. Thus, you banking records will be kept private.
Second chance banks offer you the opportunity redeem yourself. When opening your first account, you may not have understood the fees you had to pay. Therefore, you accepted the terms and submitted the necessary documents. Later you realize that the banks have high fees that you struggle to pay making you have a negative banking history. Banks the don’t use ChexSystems provide you a chance to overcome your previous banking shortcomings.
For parents, you should select a no-ChexSystems bank for your son or daughter first account.