If you have recently attempted to open a new bank account and your application was rejected without good reason, chances are you might have been left pondering on the reason why.
If you can relate, then you should know that it’s actually quite common that banks and other financial institutions reject new account applications due to applicants’ faulty banking records, and this might have very well been your case. Don't worry about it, we'll present you with the best available second chance bank accounts!
ChexSystems is a consumer reporting agency that may put your name on their blacklist if you’ve ever had a bank account closed as a result of not paying overdraft fees, or similar other banking mistakes. Most financial institutions use ChexSystems to determine whether to accept or decline a new application.
Synonymous to how your credit score and report will determine whether or not a given creditor will approve your credit card application, ChexSystems provides banks with a consumer report that allows them to determine if a potential account holder will be an asset or a burden. This is mainly to filter out irresponsible account holders who are likely to avoid paying bank fees.
If you’re looking to open a bank account online due to bad credit, or if you’ve been searching for a non ChexSystems checking account without much success, then look no more -- “second chance” accounts are alternative bank accounts for people on ChexSystems’ blacklist and they are the perfect solution for someone with a flawed banking record.
Just as the name suggests, these bank accounts have been designed specifically for people who need a second chance at proving that they can be responsible account owners. If they stay clear of fees and negative balances, most banks even allow their users to fix their banking history and upgrade to a regular checking account after 6-12 months.
To aid you further, we’ve put together a list of second chance banks that are worth considering:
BBVA is committed to giving users another shot at responsible banking. Residents of California, Arizona, New Mexico, Texas, Colorado, Alabama, and Florida, can enjoy the benefits of BBVA Compass’ ClearChoice Free Checking, ClearChoice Savings, and Easy Checking accounts, which are all second chance accounts.
For more information by state, you can click here
For more information by state, you can click here.
For more information by state, you can click here.
Wells Fargo’s “second chance” option is its Opportunity Checking and Savings Account. This type of account was specially designed for customers with bad credit or banking records. More information about this option:
Fees to lookout for:
First National Bank and Trust Company also offers a “second chance” account for customers who are looking to restore their banking record. Their option is the Renew CheckingAccount. More information on this second chance account:
Fees to look out for:
For more information by state, you can click here.
Woodforest National Bank is another great second chance alternative for consumers inAlabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
More information on this second chance account:
Fees to lookout for:
Although there are many fees tied to this account, you can upgrade to a more convenient account type after 6 months of good standing history. Click here to learn more about this account.
5. PNC Bank
If you apply for a regular PNC checking account, but aren’t approved, they will offer you a Foundation Checking Account. More information on this second chance account:
If none of these alternatives help, you can always look around locally. There are many community banks and credit unions that offer second chance accounts. Since these financial institutions aren’t as picky as the larger corporations, and since they are usually more interested in forming a personal relationship with their customers, you can always explain your position personally.
No system is perfect, credit bureaus and consumer reporting agencies sometimes have data attached to a wrong name. So, if you believe there may have been a mistake, get the paperwork to back you up and try to clear up the misunderstanding. ChexSystems provides free consumer reports once a year. Consumers may request theirs with an online form available at their website, or by mail, phone, or fax.
You can also review this ChexSystems sample report to become familiar with the information contained therein. If you find proof that there has been an error, you can dispute the information with this form and request that ChexSystems looks into correcting the error
As described on the list above, these options all entail several bank fees, so it’s worth doing your homework before choosing a second chance account. Go for the one that best fits your needs and is available in your area and monitor your account movement carefully to avoid unnecessary fees. On that same note, try to always have enough money in your account to cover for any mistakes.
Given that the majority of these alternative accounts offer mobile and online banking, you can easily check your balance whenever you wish. There are also many services out there that can help you control multiple accounts from one place, like LevelMoney, Mint, or You Need a Budget.
Are you looking to open a Bank Account but you have ChexSystems problems or Bad Credit?
Try opening a BBVA Compass Free Checking Account! BBVA is one of the top banks in the US and they may give you a REGULAR bank account when you apply online...even with bad credit history or Chexsystems records.
If for some reason, you don't qualify for the regular BBVA checking account, you'll have the opportunity to open the BBVA Compass Easy Checking Account, the most forgiving account designed specifically for those with banking problems....
Just out of college and ready to move off-campus, Patrick learned he had been a victim of identity theft when he was rejected by the landlord for having bad credit. After years of having multiple credit applications denied and fed up with having to pay security deposits up front to utility companies, Patrick decided to dispute Chexsystems and recover his credit. He educated himself on personal finance for years and, after successfully building up his credit record to a good score, he was approved for a mortgage and was finally able to buy a house in New York, where he now lives with his girlfriend and their dog, Winston.