Try Second Chance For A Second Chance

Second chance banking is usually needed after filing for bankruptcy, gone through an ugly divorce or filed for foreclosure on  their home. The individual credit rating of a person who has gone through such a financial catastrophe is normally totally  eliminated. Such individuals usually end up losing their credit cards and even bank account in some cases. To re-establish  one’s credit is a long and arduous process. Most banks are not open to letting a person start over without having some  collateral. This is where second chance banks with second chance accounts come in.

Second chance accounts are bank accounts  made for people who have difficulty in opening an account in regular banks. Here these banks will not take up a credit check  or will have certain parameters for one to open an account though not as stringent as regular banks. There are some terms and  conditions that such banks practise. One is monthly fees, these may be small monthly or maintenance fee. The amount is at the  discretion of the bank. Please do check before opening an account, especially as they may deduct this amount from your  account without informing you.

Second chance checking account may have an account limitation either on withdrawal amount or  number of transactions allowed. These limits are enforced as most people opening a 2nd chance checking account have credit  problems in the past. The second chance bank may also not offer an overdraft protection, again this has to do with the past  history of banking of the customer. This does help a person keep track of their finances and spending habits. Most people who  opt for second chance banks and second chance accounts do so as they have been blacklisted by their regular banks. Most often  these are for simple mistakes and not because they have committed a bank fraud or criminal misdemeanor.

Most people are not  well versed with the banking laws and do not how to manage their finances. Some always end up paying only the minimum on  their card and thus accumulate a huge debt, whereas some don’t realize that by clearing their card amount promptly sets up a  good credit rating and instead always pay right at the end or a few days later. Some second chance banks do look at the  misdemeanor listed on your account and on verifying that you have not committed a serious offence help you in opening an  account with them and may even relax their parameters a bit.

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Posted in: 2nd chance checking,second chance banking,second chance checking

Don’t Get Carried Away When Using Your Credit Card

Depending on the amount of credit that you have run up on your card there will be a certain minimum amount that you will have  to pay at the end of the month. Credit cards can be very convenient. If you do not have the funds to buy something at present  then you can purchase it on credit and then repay the money through your credit card payments. You should however be careful  when using your card because you could very easily end up in debt.

A lot of people end up misusing their credit cards. They go on a shopping spree and end up swiping the card without much  thought. This is not good for your finances in the long run. Whenever you swipe a card you are spending money. Eventually you  will have to pay that money back. People fool themselves into thinking that they can buy whatever they want and do not really  stop to think about the consequences. If used properly a credit card can help you improve your quality of life considerably.  There are a lot of people who use their credit cards intelligently and get a lot of advantages from them.

You should make sure you are very careful with the use of your credit card because it will become a part of your permanent  credit record. If you default on your payments then this will reflect badly on your credit history and you will end up with a  poor credit rating. This will make it very difficult for you to get a loan and you might have to pay higher rates of interest  to secure one. It is not good to default on credit card payments. It has a very negative impact on your credit record.  Continued misuse of your credit card will result in your card getting cancelled. Once your card is cancelled it will become  very difficult for you to get an unsecured credit card.

Banks will start looking at you as a risk and will not want to issue  a new card to you. Unsecured credit card are very useful and you will not realise their value until you are unable to get  one. In such a situation you will have to apply for a secured credit card. These cards are usually backed by some sort of security  and you will only be able to run up a limited amount of credit on them. The interest and the charges on a secured credit card  are much higher than that on a unsecured credit card.  

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Posted in: unsecured credit,unsecured credit card,unsecured credit cards