Second Chance Checking Accounts
Second chance checking accounts are checking accounts for consumers who are currently listed in ChexSystems or Early Warning Services. ChexSystems and Early Warning Systems are consumer reporting agencies (think Equifax or Experian) for the banking industry.
While there are options for those listed or blacklisted, there are some things you need to know about second chance checking accounts.
1- Restrictions – Most accounts are restrictive when it comes to deposits and the availability of funds. For example, your deposit may be help for as long as 14 business days before it becomes available. Use of the funds before they become available could cause some serious financial problems. Some accounts are so restrictive that it actually puts you at risk of bouncing checks and incurring fees (which is probably the true reasons for the restrictions) due to the fact that deposits are held and checks are processed immediately.
2 – Prepaid Credit Cards – While prepaid credit cards are an awesome tool and are an excellent alternative to bank accounts. Some second chance checking accounts are nothing more than prepaid credit cards with online bill pay. Make sure your getting what you want and not something in disguise
3 – Scams – A perfect example of this is newbankaccount..net. They claim to offer you a second chance checking account for a fee of $25. What happens is they fill out 2 prepaid credit card applications in your name and then you get approved for a prepaid credit card and not a checking account with check writing priviledges. Also, you have to give your personal information to someone to process your “checking account” information and then that information is sold to other companies.
From their tos (hxxp://www.newbankaccount.net/secure/program/inc/application4b.html) – We are a financial matching service – matching individuals with prospective account products. We will review your information and in our sole discretion, may submit your Application to one or more Banks for acceptance. – So this means that for $25 they “may” process your application. Chances are they will not and will end up taking your money.
So what do I recommend? There are sites that provide free directories of banks that have been reported to offer second chance checking or bad credit checking accounts. There are no guarantees with these sites and the information could have been reported wrong, but these are the best bet right now. Check out the resources below
Second Chance Checking Banks
Bad Credit Checking Banks
ChexSystems Removal
Credit Repair – Common Sense Tips
You found yourself with bad credit. While it is important to realize how you got there, the real question should be how do I get my credit score back to a solid rating. Despite the current economic situation it is still very easy to get a credit card these days. How you use your credit cards will determine your future credit score.
Here are five easy tips for rebuilding your credit score and raising your FICO score.
1) First thing you need to do is ensure you have an active checking AND savings account. If your worried about not being able to get a checking account start looking for second chance checking or bad credit checking accounts at local banks. Check out online savings accounts like Ally and ING Direct for easy savings accounts with no fees or minimums.
2) Second thing is to get an unsecured credit card. You will find that you are getting credit card offers in the mail. Read these carefully because they are designed to take advantage of people with bad credit. Some people claim to start with secured cards, but most secured cards report as secured and therefore do nothing to help rebuild your credit score. Also, be aware of the First Premier credit card and the Continental Finance credit card offers. These are high fee/low limit bad credit cards that are horrible deals.
3) Never make another late payment. Sounds like common sense, but you will be surprised at how this common sense tactic is often overlooked.
4) Monitor your credit. You have to stay on top of your credit. TransUnion, Equifax, and Experian all have monitoring plans where you can get monthly updates on your credit report and score. While expensive, you need to have this access to start cleaning your credit reports. This will allow you to easily monitor your current credit situation and see your score increase as well.
Since your just getting started, go to annualcreditreport.com and get your free credit report to start out. You then know what your working with and which report is in worst condition (no they are not all the same). I recommend that you print out each report so you have them sitting right in front of you and can make notes if needed.
Now the time consuming and frustrating part begins. You need to start going through your reports in fine detail. Start with the simple things
- Is current address correct?
- Are there any addresses listed on the report that aren’t mine?
- Is my name and other personal information right?
Start disputing and correcting these items.
Then move on to the more difficult
- Are there any credit cards/loans that aren’t mine?
- Are there duplicate accounts
- How many accounts have gone past the 7 year reporting limit
- How many are near the 7 year reporting limit.
5) Keep at it. There is a light at the end of this long tunnel but it takes time and hard work to get there.
Now here are a couple of tips that most people will not tell you.
1. Dont pay old collection accounts. A collection is a collection and a paid collection does not look better than an unpaid one. In fact, paying the account can re-age or start the 7 year reporting clock over again. Pay only if they agree in writing (all correspondence should be sent certified return receipt mail and do not trust anything not in writing.)
2. Dispute as not mine. This tactic can work wonders and you can dispute old accounts (near the 7 year limit) as not mine and a lot of the times they will fall off your report.
3. Be Nice! A lot of forums, resources say you should be a jerk and start quoting laws with the very first letter. Try a different approach and be nice saving the legalese for the second and third requests for deletion/removal.
4. Know Your Rights. Make sure your know the credit repair laws in your area
The key to rebuilding your credit is hard work and patience, it’s not going to happen overnight. Make smart calculated moves and move on to a better financial future.
Check out unsecured credit cards.
Credit Tip
Credit should never be used to pay for perishable items such as food, gas, meals out, airline tickets, etc unless you are 100% sure you will pay the credit cards balance in full at the end of the month. There is nothing smart about paying for things that you do not have or can no longer use.
If your looking for an unsecured credit card for bad credit, the check out Unsecured Bad Credit Credit Card for honest reviews on the top bad unsecured credit cards.
Prepaid Credit Cards | Second Chance Checking | Bad Credit Checking
Unsecured Credit Cards
Not only are credit cards a way of life, they are fast becoming a necessity of life. The ability to do simple things like renting a car or getting airline tickets are almost impossible without a credit card. So what do you do when you have bad credit and are unable to get an unsecured credit card or the cards your being offered are nothing more than scams. Before applying, make sure you follow these three simple steps.
The first thing you should do is know what your credit report says about you. You already now your credit is bad, but do you know how bad? It may not be as bad as you think or unfortunately it could be worse. Get a copy of your credit report at Annual Credit Report. This will ultimately determine what unsecured credit card you will be approved for.
The second thing to do is make sure your ready for an unsecured credit card. Do you have a checking account to ensure that you can make the payments on time every time? Also, have you started putting some cash back for a rainy day. Making sure your ducks are in a row is of the utmost importance before you start looking for a card. If you need a checking account checkout the following second chance checking, bad credit checking , and this ChexSystems Removal“>ChexSystems Removal information.
The third thing to do is take a look at the unsecured credit card offers and weigh your options. You will likely qualify for cards such as the First Premier credit card or the Continental Finance credit card. Before applying for these cards you need to take a look at the fees and interest rates. You will soon find that these options are among the worst offers available and are not financially responsible. You also need to make sure you understand all the terms and conditions. This will ultimately help you decide what card you should apply for. By reading the terms and conditions, you will see what hidden fees and costs are associated with the unsecured credit cards you will be applying for.
If you follow the steps above, you will soon see that most of the unsecured credit card opportunities are scams and if not scams, very close to it. We recommend that you take a look at the Orchard Bank Classic MasterCard. This card is the best alternative available to help you build credit. The fees are low and the interest rate is respectable and there are no junk fees or hidden terms you need to be concerned with. Get more information and apply here.
Credit Repair Laws
Over the past few weeks, I have posted blog posts about credit repair laws in our country. Below is a state by state listing of credit repair laws that go over and beyond federal laws. If your state is not listed, it simply means that only federal laws apply. Read the rest of this post »