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What is Second Chance Checking?

Second chance checking is a checking account for people who have had a bad financial history. Most all the people who will need to open this account are ones who have their name listed on the ChexSystems blacklist. Having your name on this list can cause a huge number of headaches for you when you’re trying to open a new bank account. Not only will ChexSystems make it difficult for you to open a checking account, but it will also be hard for you to be able to open a savings account. With a second chance checking account, you will be able to get back into banking and be able to move on with your life.

Just because someone gets their name on the ChexSystems report, it does not mean that they are a bad person. A lot of people make mistakes, and in a few cases it is not even that person’s fault for why they are on ChexSystems. That is why there are banks that give a second opportunity for people to learn from previous mistakes and improve their financial habits.

Fixing Your Report

Even though you can get a second chance checking account, it is extremely advised that you continue to clear up anything that is on your report. You can visit the ChexSystems website and get a free report through the mail. Then, you can go through your report and make sure that there are no mistakes or errors on it. If there are any errors, you need to immediately report back to them and notify ChexSystems of any and all mistakes. For the legitimate line items, it is important that you make contact with previous banks and work with them to get your name off of ChexSystems. If you do not, your name will be on the list for five years.

Why Do Banks Use Chexsystems?

Banks use ChexSystems much like a credit report. Whenever you open an account with a bank, you will be reported to ChexSystems if you have any problems such as excessive NSF fees or suspicious activity on your bank account. So, say for instance you get in number of NSF fees and do not pay the fees to your bank. Your bank will then put your name on the ChexSystems report. Then, you go into a bank and try to open a new account. What the new bank does is check the ChexSystems report for any information on there, and if they see anything, they will deny you the ability to open a new bank account. So basically, banks use ChexSystems as a safeguard to help decrease the amount of money lost due to people who either commit fraud with bank accounts or have problems like excessive NSF fees and do not pay the debts back.

What are Non Chexsystems Banks?

Non-ChexSystems banks, are banks that do not use ChexSystems. Instead of using the ChexSystems report as the means to do a background check on potential customers, they will do a credit check instead. This is one great way to open a new bank account if you have semi-decent credit, but your name is on the ChexSystems blacklist. The majority of banks that fall into this category, are small banks and credit unions. For the most part the large banks like Bank of America, Union Bank of California, US bank, and all the other large banks use ChexSystems before they open accounts. So in order to increase your odds, it is a good idea to stick with the small banks. It is also a good thing because small banks have a better a one-on-one relationship with their clients versus the large banks.

SOAAR offers free articles that are all about second chance checking in non ChexSystems banks.