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Current is a financial technology company that offers second chances to customers who’ve been denied accounts. Earn 4.00% APY on balances up to $6,000.
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Second chance banking is available in all 50 states. It's a great option for people denied a bank account due to bad credit, Early Warning Services or ChexSystems.
If you're conducting financial transactions without a bank account, you can rebuild your banking history with second chance banking. Having a bank account can be taken for granted until you don’t have one.
The hassle of a check-cashing store, loading money onto a prepaid card, the fees; not to mention the lack of access to financial products like personal, mortgage, or auto loans can impede you from making major purchases.
ChexSystems maintains negative banking history for 5 years while EWS, Telecheck, and credit bureaus keep negative information for 7 years.
Mistakes happen. You deserve a second chance at banking to get a fresh start. The banking industry varies when it comes to second chance banking accounts. Second chance banking accounts may come with more limitations than standard checking accounts.
Second chance banking accounts are specifically designed for people who have struggled with a checking account in the past but want to get back into banking.
Some banks and credit unions offer second chance banking with limited or no check writing privileges while other financial institutions allow most features of a regular checking account but tack on a monthly fee.
Another option for people denied a checking account is to find non ChexSystems banks that don't use ChexSystems to open checking accounts. Second chance banking might include pulling a ChexSystems report but the bank doesn't hold past mistakes against you.
Once your new account is open, avoid habits that contribute to a negative banking history. With online banking tools, you can always pay attention to checking account balances, keep track of all transactions to avoid overdrafts, and monitor your bank accounts.
Participation in a financial management workshop, often online for 60-90 minutes, might be required by some banks and credit unions prior to opening a second chance banking account. These workshops offer good tips on managing a checking account and avoiding actions that can get you in trouble.
NEVER, EVER deposit a third-party personal check via ATM or mobile deposit. A 3rd-party check is when a friend or family member endorses a check over to you to cash or deposit. Banks typically don't like 3rd party checks because of the risk associated.
If a bank accepts 3rd party checks, they may require both you and the original payee to sign the check in the presence of a teller. You may even want to be wary of a 2nd-party check from a friend or family member.
A 2nd-party check is one written directly to you. Many consumers have innocently deposited a personal check from a friend or family member that ended up as a bounced check.
Banks often see these types of transactions as fraud. And for a bank, fraud is similar to bank robbery. Being reported by a bank for fraud is one of the WORST notations on ChexSystems and Early Warning Services, even if it was unintended.
Pros of a second chance checking account:
Cons of a second chance checking account:
Just like creditors report inaccurate information to credit bureaus, banks and credit unions make mistakes too. Challenge errors and inaccurate information reported to ChexSystems and EWS if you think you should have a clean record.
Order your ChexSystems and EWS report for free, once every 12 months. If you’ve been denied a bank account within the last 60-days you are entitled to a free report. Otherwise, there may be a fee.
When a shaky banking record prevents you from traditional banking, you can't go wrong with banks that offer second chance checking accounts, even if a monthly fee is required.
Take comfort in knowing there are tools to help you restore your banking privileges and, if you have to pay a monthly fee, it will not last forever. Start enjoying all the benefits and conveniences of banking again.
The national savings rate is 0.41% APY. This online bank pays way more.
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