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. If you have negative banking history the new bank may deny your request to open an account with them. For example, failing to pay a bank deposit fee. Second chance banks offer you the opportunity to avoid these struggles. The following are advantages of choosing no-ChexSystems banks.
Chexsystems usually report only on your negative rating and ignore the positive aspects. Your request to open an account may be denied for having just one negative aspect in the past. You should strive to avoid banks denying you services due to your past. Thus you will need to identify the second chance banks near. Hence, you will have a new account within a short period if you choose second chance banks.
To avoid the problem of listing with negative banking records you should choose no-Chexsystems banks. Usually the ChexSystems will keep your history for five years, and it is not automatic they will remove you after the period. Therefore, you may have challenges managing your bank account for the first year. After the first year you streamline your financial activities and ensure that the account allows the minimum balance. The problem is that the negative report of the first year will be maintained for five years or even more. For that duration you will be unable to open a new bank account. You, therefore, need to opt for banks that do not use ChexSystems.
To keep your banking records private you should opt for banks that don’t use ChexSystems. It is legal for ChexSystems to grant access to your banking history to other banks and financial institutions. The challenge is that these records can be used to disadvantage you. Banks that don’t use ChexSystems offer the chance to prevent this from happening. You record will be kept confidential.
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. Later you realize that the banks have high fees that you struggle to pay making you have a negative banking history. To avoid these challenges you should choose a no-ChexSystems bank.
If you are planning to open your first account for your kid it is advisable you choose a bank that doesn’t use ChexSystems.