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. When you fill the deposit account application form the bank will check your banking history using ChexSystems to decide whether to approve or deny it. If you have negative banking history the new bank may deny your request to open an account with them. Such as making late payments to your account fees. 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. You should strive to avoid banks denying you services due to your past. Thus, to avoid this from happening you should choose no-ChexSystems banks. Hence, you will have a new account within a short period if you choose second chance banks.
To avoid the problem of listing with negative banking records you should choose no-Chexsystems banks. It takes five years to clear a negative banking record and sometimes even longer. Therefore, you may have challenges managing your bank account for the first year. However, you later stabilize, and you make timely payments and deposit to the account. It is unfair to have to carry the burden of a bad consumer credit report for five or more years whereas the mishandling of the account was just for a few months. For that duration you will be unable to open a new bank account. Unless you choose a no-ChexSystems bank.
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 avoid this from happening you should opt for no-ChexSystems banks. Thus, you banking records will be kept private.
Banks that don’t use ChexSystems allows you another chance to have an account. When opening your first account, you may not have understood the fees you had to pay. They are usually excited to have a bank account and a credit or debit card. Later you realize that the banks have high fees that you struggle to pay making you have a negative banking history. To avoid these challenges you should choose a no-ChexSystems bank.
For parents, you should select a no-ChexSystems bank for your son or daughter first account.
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