Importance of Second Chance Checking Accounts

Americans love a great underdog success story. From celebrities that have fallen off their pedestals to their huge comeback tours, good hearted people want to support those who have hit hard times. Second chance checking accounts are one of the tools that are out there to help the struggling masses and are an extremely important resource for those who are working towards getting back on track.

Sure, there are some bad apples out there that purposely abuse checking account privileges for illicit gains, but many honest hard-working people have fallen on hard times and are deserving of a second chance. Beginners who honestly had no idea how difficult managing their finances were, divorcees who for years shared finances with a spouse who put them into debt, and even the working poor can all benefit from a second chance checking account.

People who constantly overdraw on their account and actually still have debt outstanding to their banks, are reported to the Chex System. The Chex System is a network used by financial institutions to gauge the financial responsibility of checking account applicants. Those who have major problems properly managing their checking accounts can expect to have a negative mark against them within the Chex System for up to five years.

Living without a checking account that long can prove to be especially challenging thus making second chance checking accounts a very helpful device. These types of transaction accounts are specifically designed by financial institutions for those who have negative financial history following them wherever they go. The accounts are more restrictive than traditional checking accounts, but they still serve the basic purpose of paying for debts, goods and services and are an extreme timesaver. The hope is that by offering consumers a second opportunity to manage their finances they will do so correctly and join the rest of society once again.

About the Author

These articles are written by the in-house GOBankingRates team.