Numerous people in Alabama think that it can be extremely hard to open up a checking or savings account due to terrible credit or having a poor history of managing a checking account in which negative items were reported to Chexsystems.
For those that never heard of the Chex Systems, Inc., they are a consumer reporting agency that gives account information to banks and credit unions on how individuals have handled a checking account. Positive items are not reported to this consumer agency agency, however a bank or other financial institution may report fraudulent banking activity or a account that was closed due to constant overdrafts or having a bad track record of bouncing checks. Each negative report submitted to Chexsystems will stay on a consumer’s file for five years.
Chexsystems can pose a significant burden on workers because since they are unable to use the services of a traditional checking account to cash their payroll check, they are forced to use the services of high priced check cashing companies that can add up to anywhere from $200 to $1,300 a year in fees. If this consumer were given a second chance to open a regular checking account. They would be able to bank this cost and use the money for a rainy day or continue to save it for retirement.
Many people think they need to find a bank that is non-chexsystems to get approved for a new checking or savings account. However, this can be a difficult challenge because most financial institutions use Chexsystems reports. A consumer should know that many banks and credit unions in Alabama offer a fresh start or second chance checking account program that are designed to get the consumer re-banked and provides a chance for them to prove themselves capable of managing a checking account again even though they had problems in the past.
Our staff at InfoAviator Publishing is taking a step towards helping Alabama residents break free of this vicious cycle that keeps hard workers from saving money. We have created a list of local credit unions that are willing to give a consumer a fresh start or second chance checking account. Our staff along with our loyal viewer submitted list can be reviewed at http://answers.infoaviator.org/?qa=283/any-alabama-banks-offering-checking-accounts-for-bad-credit&show=284#a284. Additionally, consumers can view our staff verified nationwide list of real financial institutions offering these types of accounts at http://infoaviator.org/finance/checking-accounts/2014/05/28/how-to-open-a-second-chance-checking/.
People using one of these fresh start or second chance checking account programs can avoid making the same mistake twice by following two easy steps below:
First, open a savings account and link your checking account to it. Having the accounts linked for overdraft protection will allow the bank to transfer funds from your savings to your checking account when there is not enough funds to cover a outstanding check that is cashed or when a debit card purchase overdraft’s your account. In addition, you can see what other over-draft payment programs your bank may offer, such as a linked line of credit.
Second, keep a accurate record of the money you deposit and withdraw from your checking account. This can be accomplished by using a paper check register or keeping track of your account with on-line banking. Pay special attention to track ATM withdrawals, bills that are debited electronically, debit card purchases, outstanding checks, and don’t forget any banking fees such as your normal monthly checking account fee and fees accumulated by using another bank’s ATM. For this reason, it can be a great idea to keep extra funds in your account to help prevent you from having unintended overdrafts.