Denied a Checking Account?
One of the most frustrating things around has to be looking for banks that offer second chance banking or banking alternatives for bad credit, especially when you've ended up in chexsystems, a reporting agency similar to the credit reporting companies that score your ability to pay back debt.
You may end up in in chexsystems, if you've bounced a check, overdrawn an account or even been suspected of fraud.
The latter is harder to clear up as it relates to second chance banks. But if you've bounced a check or overdrawn an account that's ended up in a closed status, you may be having a desperately hard time in opening another account at a reputable bank.
If you've ended up on chexsystems on the suspicion of fraud, you will almost ALWAYs have an issue with opening up any bank account that uses the national reporting system. You'll want to clear that issue up, remove the line item from the reporting agency, or utilize a bank that doesn't rely on chexsystems.
Bad Credit Bank Accounts
Luckily there are at least two national banks that will work with you when you've ended up in chexsystems or just have plain ole bad credit. These second chance financial institutions do exist. In fact there are a number of large banks that can help you when you've fallen on hard times and have had a flurry of other banks to tell you no, you can't open an account up.
1. Local and National Credit Unions
A local credit union could be an alternative when you've been turned down or denied a bank account. Most local credit unions and small town financial institutions want to build relationships by the nature of it's size, and to that affect, they realize sometimes people have financial issues which land them into some trouble.
Find a non chain bank in your town to deal with, and open up an account. Many times these small institutions don't use chexsystems because it's often cost prohibitive.
2. Bank of America
The BOA actually has a program for second chance banking. They'll even take you if you've wound up on chexsytems.
Typically, BOA will want to know that you've satisfied your obligation with the former bank where you may have had an overdrawn account or ended up with a bounced check on your credit history. What you want to do is clear it up and apply to BOA for a second chance account.
3. Wells Fargo
Wells Fargo, like BOA, has a program to help people in chexsystems. Again, they may require you to have cleared up any open history on chexsystems and you may be free to open an account.
Other Options When Denied a Checking Account
Luckily you do have other options when denied a checking account. You might also consider Account Now.
This company is set up soley to assist people who can't open up a checking account. You'll even be given a routing number and account number, to help with direct deposit. There are more fees associated to this type of account, but luckily when all else fails you should know you have options.
Have you ever been denied a bank account? Do you know of any other banks that offer second chance banking?