Getting approved for a new bank account can be tricky if you’ve had a history of banking issues. Fortunately, there’s another option. Second chance checking—also known as second chance banking—can be an option for individuals looking to get their finances back on track.
What is a Second Chance Checking Account?
A second chance checking account doesn’t have the same sign-up requirements as a regular checking account. A second chance checking account is ideal for those who may have struggled with on-time payments or maintaining a strong credit score, or for those who have been denied another type of account with a financial institution.
How Do You Qualify for a Second Chance Checking Account?
When a person tries to open a new account with a credit union or bank, the financial institution will review their banking history to learn more about their financial past and determine how likely they are to keep an account in good standing.
A bank or credit union will most often review your banking history in a report from ChexSystems, a service that aids financial institutions in prescreening new customers. There are a lot of factors that credit unions and banks consider, including poor credit, excessive withdrawals, late bill payments, or even a lack of banking history.
Second chance checking does not take those factors into consideration. In fact, most credit unions and banks will not even look at your ChexSystems report when you apply for a second chance checking account. Rather, credit unions and banks will use their own individual factors to determine whether a candidate makes sense to be enrolled in a second chance checking account.
What Can You Do with a Second Chance Checking Account?
A second chance checking account works similarly to that of a standard checking account. It will have features that allow you to:
- Manage Your Account Online – Users can access Digital and Mobile Banking, as well as tools to monitor their spending, set up savings, establish a budget, and more.
- Pay Bills Easily – Whether it’s a one-time bill or a monthly fee, a second chance checking account allows users to use autopay features to pay bills on time.
- Spend Securely, Online or In Person – Account holders can make purchases online or in-person with a debit card. They can also withdraw cash from ATMs.
- Move Money – Account holders can deposit checks securely into their accounts or set up direct deposit.
Using a second chance checking account actively can help account holders progress toward their money goals and secure a stronger financial future.
At Credit Union 1, a Second Chance Checking account includes many tools to help you succeed, like access to personalized financial literacy content, the chance to get paid up to two days sooner with direct deposit, budgeting tools in Digital Banking, and more. Plus, if you successfully maintain a Second Chance Checking account for 12 months, you become eligible to transition to CU1’s Free Checking or High Yield Checking.
Your start to a financial comeback is only a few clicks away. Open an account online, over the phone, or in person to start rebuilding your finances today.
