03:16
Earlgue R
Banks had a major role to play in the recent economic crisis. Many people have been very critical of banks and have questioned why banks continued to give people loans they obviously could not pay back. Since then banks have become more careful with their services. They do not entertain people who are known to default on payments. When you fail to make a payment on time it becomes a part of your credit history. These day’s banks are not willing to work with people who have a poor credit or banking record. If you are such a person then you will find it difficult to open a new bank account with another bank.
The good news is that there are some banks that have a service called the second chance banking service. The term is quite self-explanatory, with this service the bank is giving you a second chance to make things right. If you make sure that you operate your finances intelligently and make all your payments on time you can use this chance to fix your credit history. There is however a catch. Just because the bank is giving you a second chance does not mean that it is going to disregard your earlier history. A second chance checking account comes with a few strings attached. The minimum balance required on such account is generally higher than that required from normal accounts.
The interest charged on this account will also be more. You may be charged either a higher per transaction fee or a higher service fee at the end of every month. If you have 2nd chance banking account then you may not be allowed to own a credit card. Even with these limitations the second chance checking account can be very useful. You should ensure that you make your payments on time and this will help you improve your credit score. Once your history is better you can open a normal account with a bank of your choosing.
There are numerous banks that offer the second chance banking service. You should choose the bank with care. Before you make any decisions make sure you have all the necessary information. You can learn more about second chance banking and second chance checking accounts online. If you continue to default on payments even with a second chance banking account then you will end up losing this account as well.
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