Banks That Offer Second Chance Banking – There Are More More Than You Think!

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Are you currently looking into banks that offer second chance banking or bad credit checking accounts? If so, here is some important information. We will be covering the background of the problem and the two main types of banks to consider. We will also consider some of the features of the second chance banking accounts offered. By the end of this article, you'll get a good sense of how everything ties together and be confident that you will soon locate and get a fresh start with a bank that offers second chance banking.


Banks that offer second chance banking provide a much needed service to people who have been denied a regular checking account. When a banks turns down a person for a new account, the most common reason is that the applicable has a record within the ChexSystems. ChexSystems monitors checking account activities.

If someone closes an account that is still owed "not sufficient funds" or other bank fees, their account will have a negative record. The next time they try to open a new account and the record is retrieved, they could have denied the opportunity of opening an account.

Two Main Ways Around It

If you or someone you know have been affected, there are two main ways to get around this. Firstly, you could find a bank that opens non ChexSystems checking accounts. That means they do not use the ChexSystems at all to determine eligibility. To find out if this is the case, you could call the bank up or search online for answers. Sometimes, they may even boldly advertise that they do not use ChexSystems in brochures and sign boards.

More often that not these days, most banks are on ChexSystems. No worries. Many banks will still offer or else have subsidiaries that specialize in second chance banking. If that is the case, you can use their services. These include large nationwide and multi-state banks like Chase or USBank, Compass Bank, Wells Fargo and many smaller regional banks and credit unions. Along with a second chance checking account, you will also very likely qualify for a savings account.

Great Useful Features And Potential For Account Upgrade

The good news is that these accounts almost just like regular bank accounts. You can write checks, do online bill pay, withdraw money through an automated teller machine (ATM) and pay for purchases using a debit Visa or Mastercard.

If the bank is a member of the Federal Deposit Insurance Corporation (FDIC), the funds should also be federal insured up to the normal amounts. As you establish a banking history with these banks and they see that your account is in good standing, you can be upgraded to a regular account. You do not have to wait the entire 5 years before your negative ChexSystems record is deleted.

Next Steps

In summary, there are many banks that offer second chance banking. Do not be discouraged if you have been denied a checking account. You just have not found the right bank, yet. Take a look at the banks mentioned above as well as check out a few more different articles and websites for additional choices and explanations.

Source by Joe Arthur

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