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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