How to Open a Second Chance Bank Account for Bad Credit
Bank accounts can be obtained even if you have had past credit problems or have been reported to ChexSystems, which banking institutions often use to report those with mishandled checking accounts. Many banks have a second-chance bank account for those who cannot obtain regular checking accounts. Second-chance banking accounts are very good option for those unable to obtain a regular account, but they do come with a price and often have a monthly service fee. Some second-chance accounts also have limits on check writing.
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Instructions
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Obtain a copy of your credit report if you do not have one. You are entitled to a free annual credit report from each credit bureau (See References). It is important to know what's in your credit report before attempting to open a bank account. It is best to be prepared so that you are not taken by surprise if the bank pulls your credit history.
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Call banks in your area and ask them if they offer second-chance accounts. If they do, see if you can get as much information as possible concerning the account. You should ask questions such as, "Is there a monthly maintenance fee?" "What does the account offer?" and "What is the amount needed to open the account?" It is best to go in person for a second-chance bank account so that you can explain anything that may come in your file that needs an explanation.
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Allow at least two hours when you arrive at the bank for your appointment. Be prepared to show your driver's license, Social Security card, and of course have your initial deposit. You will be asked to fill out and sign several documents and they will make copies of your driver's license and Social Security card.
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Make sure you ask any questions you may have about the account's benefits, limits and when the monthly maintenance fee is deducted each month. The final step will be making your initial deposit and your account will be opened.
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Tips & Warnings
Comparing several accounts before actually setting an appointment will get you the best deal on accounts. Some second-chance banking monthly maintenance fees are lower than others; many are less if you sign up to have your paycheck direct deposited. Additionally, many second-chance checking accounts will also allow you to open a savings account; it pays to compare banks. Shopping around can save you a lot of money in the long run.
Searching and applying online for a second-chance bank accouns is not recommend because many of these are not actual banks but debit card-only accounts that have set up fees along with higher monthly maintenance fees. You always want to ensure the institution is FDIC-insured so that your money is protected.
