Is A Second Chance Bank Account The Right Move?
When you’re trying to open up a new bank account but keep getting denied you have a few options. Second chance banking is one of these options, but certainly not the only one. In this post I want to share some tips for getting your old bank account back, how second chance accounts work, and why you should avoid check cashing at all costs.
Opening the bank account back up that originally caused you these problems is the best solution. You’ll have to pay back the money that you owe, but you get all of the benefits that a normal bank provides. The only way to do this is to go back to your old bank and sit down with someone to talk with them about what you’re going to have to do to get it back open. This doesn’t always work, but it’s definitely the best solution.
Second chance banking is the right move when there’s no shot that you’ll be able to get your old account back. These are very similar to regular banks, but their fees are different and you’ll never earn any interest on your money. Most second chance banks provide protection if your card is lost or if there are fraudulent charges, but they are rarely FDIC insured. All you need to get a second chance account is a valid Social Security number, there are no credit or employment checks, so don’t let that stand in your way.
Check cashing is just a bad idea. It costs way more than either banking option discussed above, and it’s always risky carrying cash with you at all times. Money is too easy to lose and too easy for someone else to take from you for this to be a good idea. Instead use a second chance account.
Second chance banking isn’t necessarily the best idea, but it’s better than check cashing. Make sure that you can’t get your old account back open before moving on to other ways of managing your money. Once you can rule that out, move on to your other options.
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