Online second chance checking accounts give people an opportunity to get back into traditional banking. But finding an online second chance bank account can be a challenge. Banks don’t always advertise the fact they offer second chance bank accounts. You may have discovered that in your search.
People that have been reported to ChexSystems can benefit from a second chance checking account. Being reported to ChexSystems does not make you a bad person. Mistakes happen.
People in ChexSystems don’t always know why they were reported to the consumer reporting agency but here are a few possible reasons – too many overdrafts, bounced checks, negative balance after account has been closed, check fraud.
Second chance checking accounts provide an opportunity for people to properly manage a checking account and get back into enjoying the benefits of traditional banking.
Banks may even deny new applicants if they have bad credit. A second chance checking account for people with bad credit can provide an opportunity to rebuild credit and get back on track with finances.
Checking cashing stores or prepaid debit cards are not a long term solution. Building a relationship with a traditional bank offers opportunity for financial growth. Traditional banks offer mortgage, car and personal loans, savings and investment accounts, credit cards and lines of credit.
Where to find an online second chance checking account
BBVA Compass is a second chance bank but you cannot apply directly for the second chance checking account.
How to apply for BBVA Second Chance Account
You must first apply for the NBA Free Checking Account. When applying, choose the NBA Team you want on your debit card first, then continue with the online application. If you do not qualify you will be offered the “Easy Checking Account” which is the second chance account. You get a great checking account with all the features of a regular checking account except for the $13.95 monthly service fee. But with 12 months of good account management your account will be upgraded to the regular free checking account. You can apply online for second chance account with a minimum opening deposit of $25.
BBVA Second Chance “Easy Checking Account” Features
- Free Mobile Banking
- Free Bill Payment
- Free online and paper statements
- Visa Debit Card
- NO fees on BBVA Compass ATMs
- Upgrade to Free Checking after 12 months of good account management
Avoid being reported to ChexSystems
Once you open a new account it’s time to show how well you manage your finances. That means avoiding the habits and mishaps that landed you in ChexSystems. But it’s more to a bank account than avoiding ChexSystems. Your checking account is the central place your money moves in and out of — this means a lot of daily activity occurs around your checking account. Your goal is to grow your bottom line, not waste money on overdraft fees. Good checking account management means keeping a close eye on your daily transactions.
The best ways to handle your checking account
Balance Your Checkbook
Even if you don’t write checks, BALANCE YOUR CHECKBOOK! Record the dates and amounts of all your deposits, debits, bill pay transactions, ACH transfers and withdrawals so that you know how much money is available to you at all times. Staying on top of these transactions will keep you on track. Even if you don’t walk around with your checkbook, set aside time at the end of the day to record all of your transactions.
Utilize online banking to check your account balances, transfer money between accounts and pay bills electronically. Check your balance daily online. The great feature about online banking is that you can access your accounts from anywhere in the world. But be careful to make sure your internet access is safe. That means avoid logging on at public internet spots like Starbucks.
Bounced Checks/Bad Checks
Never write a check for an amount higher than you currently have in your checking account. That’s considered writing a bad check. Plus, it will bounce. Gone are the days when you could write a check to make a purchase and the recipient deposited the check to their bank to be processed manually. That could take days to complete. Some businesses and individuals still deposit paper checks in person, but new technology has eliminated the time it takes to process a paper check. Most checks today are processed electronically.
Adding overdraft protection can eliminate the problem of bounced checks even though it may not eliminate all of the fees associated with a bounced check. With overdraft protection, your bank will pay any checks you write, debit card transactions, preauthorized electronic fund transfer, or ATM withdrawals that exceed your account balance. Most banks charge an overdraft fee on each debit transaction that exceeds your balance. It is best to link a savings or money market account to your checking account in order to avoid the overdraft fee. There will probably be some fee even with a linked account but it will be less than the overdraft fee.
Overdraft Protection Line of Credit
Some banks offer an overdraft protection line of credit. For instance, with a BBVA Compass Overdraft Protection Line of Credit, you can link an existing checking account to a line of credit to cover overdrafts and help protect against returned checks and unnecessary fees. At BBVA there is a fee in addition to an APR (annual percentage rate) of 21%.
Beware of “Lag Time” for certain transactions
When you withdraw cash from an ATM, your account balance updates immediately to reflect your new balance. Other types of checking account transactions will have a “lag time” in posting to your account. For instance:
- Check deposits may not be available immediately. The bank may just release part of the deposit for use but not all. Always pay attention to your “available balance”, not just your account balance.
- Sending a check in the mail will create a lag time between the time you sent the check and when the recipient deposits the check. Your account balance may reflect more money than you actually have to spend.
- If you pay a bill online through a company’s website it can take several days for the transaction to post to your checking account.
Handling Bank Errors
Any error or problems with your account should be brought to the bank’s attention immediately. If representatives at the bank are not helpful then try escalating the problem to management. If the problem does not get resolved immediately contact the Consumer Financial Protection Bureau to submit a complaint. Make sure to act quickly because federal law limits the amount of time you have to report the error to your bank to 60 days from the date the bank statement showing the error was sent.
Get back into banking
Apply online for a second chance checking account that does not use ChexSystems and get a checking account to start moving your finances in the right direction. Remember with BBVA Compass you must first apply for the FREE NBA Checking Account by choosing the NBA Team you want on your debit card then if you do not qualify they will offer you the second chance checking account.