Q:

How do you open a second chance checking account?

A:

Quick Answer

To open a second chance checking account, read your credit reports from ChexSystems and the reporting bureaus, dispute any incorrect information in the reports, and compare different financial institutions offering second chance accounts, recommends SmartAsset. Credit unions usually charge lesser fees than traditional banks.

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Financial institutions check the credit reports of customers before allowing them to open new bank accounts, notes SmartAsset. They also check the credit reports of customers from ChexSystems, which is a credit service that gathers negative account history reports from banks. Dispute any errors in your credit reports from the three reporting bureaus to get rid of erroneous negative remarks and improve your chances of getting a second chance account.

When comparing banks, find out about the fees you need to pay and services and features you can access when you open a second chance account, suggests SmartAsset. Moreover, inquire if the banks convert second chance checking accounts into regular accounts once account holders demonstrate good banking behavior after a certain period.

Credit unions are nonprofit organizations that focus on the welfare of members instead of gaining profits. They offer second chance accounts with smaller fees and feature advantages such as insurance savings and lower loan rates, explains Smart Asset.

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