No Credit Check Bank Accounts

Second chance or no credit check bank accounts are designed for people who have experienced difficulty with a previous checking account. Perhaps the person bounced checks or overdrew on the account. Perhaps the person wasn't able to pay the bank the bounced check or overdraft fees. Even if the bounced checks or overdrafts occurred because of a mistake or another strange reason, the individual now finds that he has been blacklisted. Many financial institutions apparently contract with one or two companies that maintain a list of the names of people who have had these kinds of financial problems. When the individual tries to open a new checking account at another financial institution, he is not allowed to do so if his name appears on the list. This can be a frustrating and embarrassing situation for someone who is trying to rebuild financial credibility. The no credit check bank accounts, according to their promotional materials, don't run a prospective account-holder's name through the list. Instead, these institutions offer banking services to those who may have been turned down by more traditional banks. This is why they are also referred to as second chance banks.

People who do not have a personal checking account often pay extravagant fees to conduct their financial affairs. For example, the person may pay a check-cashing fee to cash a paycheck. Someone who is living paycheck from paycheck can ill afford to hand over even ten percent of a paycheck to check-cashing company, but she may have little choice. However, many of the no credit check bank accounts offer and heavily promote the benefits of direct deposit. With direct deposit, a paycheck is transferred from an employer's payroll account into the individual's personal account. This way, the individual avoids losing any of her hard-earned money to a third party. Direct deposit is a convenient feature because recipients don't have to wait to get paychecks in the mail or waste time while waiting in line somewhere to get them cashed or even deposited. On payday, the funds are automatically transferred and, in most cases, immediately accessible to the employee. There are no more concerns about losing paychecks or having them stolen before they are deposited. The money is safe. Because of all the benefits of direct deposit, many employers and government agencies expect all employees to have paychecks deposited into their checking accounts. An employee who has had prior difficulties may have little choice but to investigate the benefits of no credit check bank accounts.

An individual without access to a checking account will have difficulties paying bills. Using cash to pay electric, phone, and cable bills can be time-consuming since the person will need to take the cash to each of these offices. He'll need to stand in line and get a receipt proving the bill has been paid. He may opt to purchase money orders to pay these obligations and a money order will also need to be sent to the individual's landlord or the mortgage company. The costs of all these money orders add up quickly. Here again, the no credit check bank accounts can help. After all, a person who is living paycheck to paycheck doesn't need to be spending hard earned dollars buying money orders to pay other debt obligations. The total monthly cost of the money orders may be enough to pay for one of the bills. The apostle Paul wrote: "For the scripture saith, thou shalt not muzzle the ox that treadeth out the corn. And, The labourer is worthy of his reward" (1 Timothy 5:18). Check-cashing fees and money order costs needlessly take money from those who need it most. The no credit check bank accounts offer an alternative to paying bills with cash or money orders. Many offer a bill-paying service so that debt obligations can be paid online from the bank's website. Though consumers were at first understandably wary of banking online, more and more people are finding this a convenient way both to make and track payments. The bill-paying service is simple to set up so that regular obligations are automatically paid each month and variable obligations, such as a telephone bill that changes each month, can be quickly and easily submitted online.

Most no credit check bank accounts offer other features, including legitimate bank routing and account numbers on printed checks. Additionally, most of these institutions provide applicants with a debit card from one of the major credit card companies. The debit card can be used to make withdrawals from ATMs and to make purchases, both at retail locations and at online stores. Combined with direct deposit and a box of checks, the debit card gives the individual another chance to successfully handle financial matters without bouncing checks or having overdrafts. Second chance banks sometimes offer a feature where balance updates can be received via text message on one's cellphone. When selecting a second chance bank, prospective applicants should only choose one that is FDIC insured. This means that money in an account, up to $100,000 is insured by the federal government in case of the institution's collapse. Individuals should also request a fee disclosure statement that lists all possible fees and their amounts. It may not help much to avoid check-cashing and money order costs only to be bombarded with bill-paying and ATM usage fees. Applicants should also be aware of the bank's requirements. For example, applicants may be required to have brought all past banking-related obligations, such as long overdue overdraft fees, up to date as part of the application process. Once accepted, the no credit check bank accounts institution should provide the applicant with a packet that includes the debit card and information on ordering checks and signing up for direct deposit. The individual is now on her way to rebuilding a positive credit record.

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