Second Chance Bank Accounts: Understanding The Basics Do you think you deserve and absolutely need one of those second chance bank accounts? There are times when we made mistakes in our lives, and these include financial mistakes. While there are financial mistakes that are short-lived, others seem to reflect on our credit records for life. When this happen, traditional banks usually refrain to give us important financial tools like savings and checking accounts. Well, if this is your case, then it may be just the right time to discover how second chance banks can help you.
Why Is Having A Bank Account Important? A bank account gives you the freedom of using your money in a more convenient way. It is like this: Having a bank account allows you to pay your monthly bills, such as utility bills, auto loans, insurance, and rent faster and easier. If you do not have a bank account, you will have to pay using a cashier’s check or money order, which you have to exchange first with cash. Furthermore, converting your paycheck would be so much of a hassle if you do not have a bank account. Depending on your pay date, you will have to cash your check once a month, twice a month,or much worse, you will have to cash your paycheck every week. Nevertheless, you still have to look for a place to cash your paycheck, and not to mention the fees that will be charged to you every time an exchange is made. Okay, let us say that you can manage to pay the bills using cash and it does not bother you to cash your paycheck every payday. Still you will not be entitled to have a debit card, which is considered as a very important tool in traditional banking. Debit cards allow you to make online purchases, shop cashless in physical stores, and most importantly to apply for a credit loan. Without a bank account, you will be financially limited, even if you have the money to spend.
What Are Second Chance Bank Accounts? Second chance bank accounts are either savings or checking accounts (or both), which are offered to people who are denied to get the same accounts via conventional banking channels. More often than not, higher fees are associated with second chance banking accounts in order to give the financial institution that is offering these second chance accounts the insurance.
Associated Fees Second chance bank accounts are beneficial to those who have bad credit records, but you must understand that these accounts come with certain fees. Since second chance banks often consider their accounts as ‘high risk’, customers are often charged a relatively higher fee compared to those with normal bank accounts. Some institutions charge you at a per transaction basis, but some require you to pay for this fees at once. Nevertheless, the fees that accompany a second chance account is comparatively lower than what you are actually spending on a “cold-cash lifestyle”.
Furthermore, once you have rebuilt your financial credibility by doing responsible banking, you can probably go back to a regular financial account!
Where To Get Second Chance Accounts? ‌ Interested to read further? Please click here for more information on second chance banking.