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 instance, if you were unable to maintain the bank’s account minimum balance. If you are struggling with this problem, you should consider choosing a bank that doesn’t use ChexSystems. Below is why you should consider choosing banks that don’t use ChexSystems.
Many of the banks using ChexSystems will focus mainly on your negative history and by-pass the positive credits. Your request to open an account may be denied for having just one negative aspect in the past. The ChexSystems will record the adverse action. Thus you will need to identify the second chance banks near. Thus, you will avoid the hassle of having to wait for days for the bank to verify your history to open an account for you.
To avoid the problem of listing with negative banking records you should choose no-Chexsystems banks. It will take you up to 5 years or even more for the ChexSystems to remove your name from the negative rating list. It is understandable that you may have problems paying your account fees for a short duration. However, you later stabilize, and you make timely payments and deposit to the account. 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.
Choosing no-ChexSystems banks helps you avoid the risk of your information being sold to other parties. Chexsystems have the rights to share your banking records with other third parties. Therefore, you risk your data being used to deny you various services. To mitigate against this risk, you should choose the banks that do not use ChexSystems. Only you banks have accessed your banking transactions.
Second chance banks offer you the opportunity redeem yourself. Many people open banks account when they are young and ignorant of the terms and conditions. Therefore, you accepted the terms and submitted the necessary documents. Many people will only recognize about the bank fees when they receive a message about late payment which goes on their ChexSystems record. 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.