Repair Your Credit History With a Second Chance Banking Account

The recession wreaked havoc on the global economy. Many people who thought that their finances were secure suddenly found  themselves in major trouble. Slowly and steadily the economy started to recover. Still Unemployment rates around the world  are quite high. Just when we thought that things were on the mend Europe plunged into its debt crisis. We are again on the  precipice of a global economic upheaval.

The ups and downs of the economy have caused a lot of people to mishandle their finances sometimes through no fault of their  own. Many people lost their jobs and were unable to pay back their debts. Many people found that they were unable to repay  their mortgage and other loans taken from Banks. Because so many people failed to pay up Banks have become more wary and  cautious. When someone fails to repay a loan the Bank forecloses and tries to recover as much as it can but this is not  always possible and is still a loss for the Bank.

To help them deal with this growing menace banks got together and created  the ChexSystem and TeleChex list. Whenever a person defaults on their payments their names and information is added to these  lists. If you have landed up on one of these then you will find it very difficult to deal with banks. It will be difficult  for you to open a new bank account and get a credit card. Applying for a fresh loan will also not be possible. If you have a bad credit record and are finding it difficult to deal with financial institutions then it may be time for you  to find a 2nd chance banking account.

A 2nd chance checking account may be the only way for you to repair your credit history  and get back in healthy economic shape. This second chance however comes with a few conditions the new bank account will have  higher charges as compared to a conventional bank account. The fact that you have a poor credit history means that you are a  high risk. Chances are that you will default on future payments as well. To protect their interests banks that 2nd chance  checking accounts will charge you a higher amount for security and as interest.If you want to repair your credit history then a 2nd chance banking account is your best option. Before you open one for  yourself make sure you do your research and understand what having a 2nd chance checking account entails.

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

Why you apply for an unsecured credit card

If you have a bad credit record because you have been misusing your credit card then you need to find a way to rectify this  mistake and restore your credit record. This wont is easy for you to do and it will take you some time to get this done. A  lot of people have misused their credit cards and have become defaulters. If you are panning on applying for a secured credit  card then you will have to provide some security to the back so that you can get your credit card. The value of the security  will be more than your credit limit and this is why you need to make sure that you use your credit card well. You should only  use it when you need to and you should not use it lavishly if you don’t think you will be able to repay the amount on time.

If you become a defaulter once then the bank authorities will not take an action against you, but if you become s defaulter  again and again then your credit card will be cancelled and you won’t be able to sue your card anymore. Also the security  that you provide will officially become the banks properly and you will not get it back. So if you have a bad financial  record and if you want to improve this record then you will have to look for the best way to do so. It is obvious that you  won’t be able to apply for another secured credit card, but you will be able to apply for an insured credit card.

With the help of an unsecured credit card you will be able to restore your credit record. This is one of the pros of having  this card in hand, but there are also several cons of using the credit card. For starters you will have to pay more in order  to get unsecured credit. Then, your rate of interest will be quote high so this means that you won’t be able to use the card  much.

You should only apply for an unsecured credit card if you can afford the rate of interest. If you can’t afford the rate of  interest then you will have to look for another way to improve your credit record. So you need to make sure that you make  good use of your credit card. There are banks that provide unsecured credit cards to people with bad credit. You should do your research and find such  banks. Unsecured credit cards for bad credit will have additional terms and conditions that you should study before you get  one for yourself.

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