First time to bank customers who want to apply for a second chance bank account should take a look at some of the terms and conditions before deciding on one particular bank. Best second chance checking accounts include: minimum deposit, monthly fee, one-time fee, or no-fee account. If you have a pre-existing banking account, you can still open one of the above mentioned accounts. You need to have a specified amount in your savings to open one of these accounts. This number is usually around $1500.
Minimum deposit. Usually the minimum deposit for these banks is as low as possible. A higher minimum deposit means a better interest rate and thus more money in your pocket. Some banks may also require proof of income as well as a current bank statement. Some people may be eligible for an installment facility, which enables them to be able to make a further deposit once they have reached a particular income level.
Monthly fee. Most second chance bank accounts are offered with a one-time or minimal monthly fee. Some may also offer their customers free checks for a certain number of months after they open the account.
One-time fee. In case you've had banking problems in the past, you might need to prove that you're not a repeat customer or you have an excellent banking history. Usually this requirement isn't big, but there are some second chance bank accounts specifically designed for people with bad banking history. These are usually only available to people who open the account for the specific reason of improving their financial status.
No checks. Check accounts are for people who use checks as their primary form of banking. These usually come with more fees than savings accounts. Some banks may even reject any application for a checking account on suspicion that it might be a checkbook.
No minimum balance. Most second chance banking accounts are strictly managed by the customer. They don't come with any minimum balance requirements. If you want more benefits, however, you'll usually have to pay an extra monthly fee. Banks that do charge an extra fee usually have stricter policies regarding checking accounts, since these are primarily used for nonessential transactions.
Easy application process. Banks take advantage of the fact that most people can be turned down for a traditional banking account. By creating a second chance banking account, you get to skip the formalities and get right into the account management process. Most applications are processed within hours. However, as a final warning, some second chance banking accounts have more stringent application processes.
Unlimited debit cards. A second chance account can also come with unlimited debit cards, which allow you to withdraw money from any ATM machine around the world and use them for any purpose. An unsecured debit card is safer than a secured one, because you don't need collateral for it. You can use these cards to make purchases at stores, online, and even in taxis or car services.
Easy to use online banking facility. Since you don't need a credit or debit card, online banking can make things easier for you. In addition to the debit and credit cards mentioned above, most second chance car loans accounts come with a sofi (self-reputable) account service. This service lets you manage your money without signing up for a regular bank account. If you're afraid that you might spend money you don't have, this is the perfect way to avoid getting into trouble.
No requirement for credit check. Most second chance bank accounts will not require you to submit proof of your current financial state before you can get your debit card. In other words, you won't be asked to submit proof of savings, investments, etc. Your ability to manage money and your financial history will determine whether or not you get a checking account.
No paper work. Since you won't need a bankcard or check to withdraw cash, there are no paper works involved. For those who don't know, electronic checks are simply a digital transaction between you and the financial institution, and they're processed as soon as they arrive at the bank. Paperless banking means that the only thing you need is a computer with Internet access. And with so many online bill pay options, it's easy to set up direct deposits to your account whenever you want.
No fees. Banks that offer second chance checking accounts don't charge fees, since they understand that you're probably in need of an account to keep track of your finances. That's why these accounts are offered at such reasonable rates. There are also a number of ways you can save money with these accounts. With some basic budgeting, your monthly expenditures can be significantly reduced.