Reasons, You Should Opt to Open an Account with Second Chance Banks
Chexsystems is a service that provides banks and other financial institutions with consumer credit and account management reports. Therefore, when you apply to open an account many banks will use the Chexsystems to approve or deny your requests. Therefore, a bank may refuse your account opening request if you have negative ratings. Such as making late payments to your account fees. If you are struggling with this problem, you should consider choosing a bank that doesn’t use ChexSystems. The following are advantages of choosing no-ChexSystems banks.
Many of the banks using ChexSystems will focus mainly on your negative history and by-pass the positive credits. Your request to open an account may be denied for having just one negative aspect in the past. The plan is to find a way to overcome your negative banking history. Thus you will need to identify the second chance banks near. Therefore, being able to have an account without the delays of verification through checking your consumer credit history.
Second chance banks allow you to overcome the challenge of having a bad banking history for a long time. Usually the ChexSystems will keep your history for five years, and it is not automatic they will remove you after the period. It is understandable that you may have problems paying your account fees for a short duration. However, you later stabilize, and you make timely payments and deposit to the account. The problem is that the negative report of the first year will be maintained for five years or even more. Such a record will make it hard for you to open a new account. You, therefore, need to opt for banks that do not use ChexSystems.
Having an account with banks that don’t use ChexSystems will prevent your banking records being shared with other parties. Chexsystems have the rights to share your banking records with other third parties. Therefore, you risk your data being used to deny you various services. Banks that don’t use ChexSystems offer the chance to prevent this from happening. Thus, you banking records will be kept private.
Banks that don’t use ChexSystems allows you another chance to have an account. When opening your first account, you may not have understood the fees you had to pay. Therefore, you accepted the terms and submitted the necessary documents. Many people will only recognize about the bank fees when they receive a message about late payment which goes on their ChexSystems record. To avoid these challenges you should choose a no-ChexSystems bank.
For parents, you should select a no-ChexSystems bank for your son or daughter first account.