How to Get Second Chance Bank Accounts
Not all banks and credit unions offer second chance bank accounts, despite what you may be told by the banking representative. There are, however, a myriad of fees that make banking from your current bank difficult. In addition, most charge a multitude of charges, which does not make getting out of your current banking hole any simpler. That is why we have compiled the best second chance bank accounts listed below to assist you get your current banking issues back on track. With our help, you can be on your way to a brighter financial future.
Many banks only offer cash second chance bank accounts to individuals with perfect scores on their credit reports and with no outstanding overdrafts or collections. However, you do not need to have flawless credit in order to qualify for these accounts. These are offered to individuals with any type of banking history, including small and large deposit accounts, credit card debt, and bankruptcy filings. Cash deposit accounts are specifically designed for people with no significant current account balances.
The second best bank accounts are offered by the largest community banks. The reasoning behind this is that these banks have the greatest access to capital resources. Capital that comes into the community banks is often quickly used up as loans are repaid. Consequently, these large banks are the best, second chance bank accounts to apply to should you find yourself in a situation where you are short on either a banking account or cash that will allow you to set up a new one.
There are a number of state-approved groups that help people establish second chance bank accounts. These groups range from the Federal ChexSystems to the National Credit Card Association (NCA). These organizations can provide information about local banking services that are not regulated by the state. While many of these companies can help consumers repair their credit, the groups do not approve or finance new accounts.
You should check your local newspapers. Many community banks are often advertising special deals or introductory offers. Check with your local newspapers to see if there are any members-only checking account promotions that may be of interest to you. Many local credit unions also offer checking account specials that have fees or interest rates below non-membership banks.
A second chance credit card with no security deposit banking account can be obtained from most major banks and financial institutions. Typically, you will be required to complete an application process with the bank, as well as a credit check. Be aware that some banks may require you to have a current social security number in order to obtain certain accounts. In addition, some second chance banking accounts require applicants to have a bankruptcy filing on file, in order to avoid excessive processing fees.
Telecheck loans are available from many different major banks and financial institutions. Telecheck loans work much like debit cards. They allow the consumer to make payments directly to lenders without having to complete a traditional application. Some major banks and lending institutions, such as Wells Fargo, allow consumers to apply for and receive a Wells Fargo second chance banking account online. Applicants can complete the application process through the internet, without having to fax anything to the bank. Some banks and lending institutions require a borrower to fax certain documents to verify income and employment, such as pay stubs or copies of utility bills.
Consumers interested in opening second chance bank accounts should research their options fully. Because second chance accounts carry more credit risk than standard accounts, they come with higher interest rates. To find the best rates, look at the introductory interest rate offers, as well as high credit limits and the number of months of repayment before the account is completely closed. When checking out an online banking institution, make sure the bank will allow you to pay off your balance in full, along with the required fees.