A second chance checking account is also known as a basic account. These banking programs are designed for the ones who are not eligible for traditional accounts. Your ChexSystems report is usually inspected by the banks and credit unions when you apply for the opening of a checking account. In case you have ever ended up with a bad credit report, then traditional banks may deny your request for access to checking accounts.
How Second Chance Checking Account Works
At the time of second chance checking account application, the bank lookout for your last account of negative balance or with outstanding fees just to be familiar with your missteps. Bank and credit union don't check Chexsystems report the way it usually inspected during the opening of checking account. Even with its use, it allows you to clear the previous negative record which may take five years to recover.
Not all major banks and credit unions deliver the service of second chance checking accounts but some banks do, for instance, TD Ameritrade, Green Dot, Wells Fargo, Capital One 360, etc.
There are better options at local banks or credit unions if you ever have difficulty in finding a second chance banking from a nationwide bank. For more details, you can consult your local financial institution.
With a second chance banking North Carolina you will not enjoy all the services that are usually provided by the traditional banks for instance overdraft protection and access to checks or direct deposits. With this basic account, you may pay the monthly charges as well.
So it's better to search for a bank or credit union that will offer more facilities with fewer charges.
Pros and Cons
Second Chance Banking comes up with many advantages and disadvantages. Every user needs to know before he/she go for this option.