A second chance checking account was designed by certain banks and credit unions to help those that are unbanked because they have been unable to reopen a new bank account because they have a history of mishandling their past account which was reported to the consumer reporting agency called ChexSystems.
Not every person that gets a low score from the ChexSystems database deserves it. Banking customers can get in a unintended cycle of debt that is caused by constant overdraft fees that sometimes add up to a few hundreds dollars. Then they are unable to afford these fees and they end up having their account closed by the financial institution. The customer then ends up having a black mark reported to ChexSystems that results in being denied any future bank accounts for up to five years which is the length of time that this consumer reporting agency will retain that information.
The people of Colorado that are unwillingly remaining unbanked are then forced to use the services from high priced prepaid cards or check cashing stores.
While certain prepaid debit card offers may seem appealing, the actual reality is that even the cheapest prepaid debit card will end up being more expensive than using a decent checking account that is used under average circumstances. The reason is that prepaid cards charge anywhere between $1 – $5 for services such as loading funds onto the card, talking to a customer service representative, and point-of-sale purchases in which traditional checking account holders get for free.
Using the services of a business offering check cashing services is typically even worse, however, there are some big chains which try to help the unbanked with keeping their fees low. Below is a list of the checking-cashing fees charged by the largest national check cashing chains.
KeyCorp charges one percent of the check amount.
Regions charges its customers 1.5% and 3% of a customer’s check amount.
Walmart charges three dollars for checks of one-thousand or less and six dollars for check amounts over one-thousand.
U.S. Bank charges $10.
Check ‘N Go charges up to three percent of the check amount.
Ace Cash Express charges three percent of the check amount.
If the consumer takes in account a typical twenty-six paycheck pay schedule, they are looking at a minimum of seventy-eight dollars a year for cashing their paychecks before they even use any of that money. When a consumer cashes their paycheck at a 3 percent check-cashing rate, a family that is earning $50,221 is going to be dishing out $1,506.63 in fees!
The residents of Colorado that are denied a checking or savings account for having a bad ChexSystems report does not necessarily mean that they are banned from banks and have to resort to using prepaid cards and check cashing agencies. If your in need of finding a bank or credit union in the state of Colorado that are offering programs such as second chance or fresh start checking accounts, then InfoAviator Publishing can help you find them. Our staff along with our concerned viewers has created a comprehensive list of these financial institutions in Colorado that can be reviewed at http://answers.infoaviator.org/?qa=322/list-of-non-chex-systems-banks-in-colorado&show=375#a375. Additionally, consumers can view our staff certified nationwide list of real banks offering second chance and fresh start checking account programs at http://infoaviator.org/finance/checking-accounts/2014/05/28/how-to-open-a-second-chance-checking/.
InfoAviator Publishing is a organization determined to help the un-banked currently residing in the cities and townships of (but not limited to) Windsor, Castle Rock, Thornton, Wheat Ridge, Fort Collins, Montrose, Greeley, Superior, Golden, Littleton, Lafayette, Durango, Erie, Evans, Centennial, Boulder, Broomfield, Colorado Springs, Aurora, Westminster, Sterling, Englewood, Loveland, Denver, Northglenn, Brighton, Longmont, Parker, Lone Tree, Arvada, Fruita, Grand Junction, Pueblo, Steamboat Springs, Lakewood, Commerce City, Fountain, Louisville, and Greenwood Village in Colorado.