Second Chance Banking Is The Perfect Short Term Solution
For those that have been blacklisted by traditional banks and simply can’t get an account with any of them, you can be assured in the fact that you aren’t going to be on that list forever, and second chance banking is a very viable alternative. In this post I want to explain how Chexsystem and second chance bank accounts work so you can understand your current situation and options a little bit better.
Chexsystem is a company that aggregates the names and information of all of the people that default on their bank accounts. They then share this information with the traditional banks so that they can understand the risks involved with a new bank account applicant. This paints a clearer picture for them than if they had run a credit or background check since they can see if you had issues with banking in the past. Fortunately, you aren’t on this list forever, and after 3-5 years you are back in the clear and can get a normal bank account once again.
So what are you to do in the mean time? That’s where second chance bank accounts come into play. These work just like a regular account, but cost a little more and use a company that you’ve probably never heard of. Companies like Vision Premier and Rush Card are the most popular and reliable in this industry.
Rather than using a bank to deposit money, you will use direct deposit for any recurring checks and money can be deposited at your local check cashing store. You get all of the regular banking benefits like a card, online banking, and overdraft protection. Fees associated with this type of account are a bit higher than those with regular banks, but when it’s your only choice it’s a pill that has to be swallowed! The fees will vary from company to company, but are usually a flat monthly fee.
Second chance banking is a great way to manage your money until you’ve been cleared from Chexsystem. You won’t be stuck there forever, so take advantage of this great alternative. It’s a heck of a lot better than carrying around cash all of the time!
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