What is a second chance account? A second chance account is a special internet bank account given to people who are unable to open any bank account because they owe a bank money.
Bad credit checking accounts have become fairly popular these days because of the recession. Many people have found their accounts at their bank frozen because they are unable to make payments to the bank for one reason or the other. What can you do in this case?
One option would be to simply not have banking account. But these days, this is a highly unappealing option because it’s pretty hard to do anything without one. For example, if you don’t have a checking account, you won’t be able to get any sort of loan.
The other option is to open up a bad credit banking account. This is, in fact, your best option. If you open up a second chance account, you will be able to deposit money, withdrawal money, and perform any other financial activity you can with a bank account. Basically, a second chance account is no different than any other sort of banking account.
If you want to get one of these special accounts, you will have to be prepared to pay more money, however. Second chance banking is more expensive than regular banking. You can expect to pay more free in one way or the other – perhaps higher banking transaction fees or higher monthly bank fees.
Ultimately, it’s up to you to decide whether a bad credit checking account is worth the higher cost. However, if you can’t actually open a bank account, you don’t have any other option.