If the banks think that you are not a reliable person and if you have been defaulting on your payments then they will create a bad credit record for you. You will be added to the Chexsystems list. There are a lot of things that can land you onto this list. Issuing bad cheques to people is one way to end up on the chexsystems list. If you have been overdrawing on your account on a frequent basis then your name will be added to the chexsystems list. If you have been involved in any fraudulent activity or provided the bank with false information then you will be decleared as a liability by the bank and you will be put on the chexsystems list. Once you are on the list you will not be able to get off it for 5 years.
Once you have appeared on the Chexsystems list, you will not be able to open a regular bank account for a period of five years. You lose your face in society and are no longer respected in the banking world either. If you declare bankruptcy also, you develop a very bad credit history. When you approach a bank to open an account with them, they will either refer to the chexsystems list or a Telecheck list (similar to the former list). In all likelihood your name will be on each list, and the bank will immediately reject your plea.
Second chance banking is your only resort. These banks allow you to bank with them however under a whole new set of terms and conditions. You will have to pay a fee to bank with such institutions and will also have limited features against your account. You will not be given an overdraft facility or in some cases even an unsecured credit card. A lot of limits will be applied on your account so that the bank can monitor what you are doing at all times. 2nd chance checking is the only option that is available for people with bad credit histories. Once the bank starts noticing how reliable you are they will begin to give you many additional features and allow you a lot of other benefits. This is the only method that you can use to rebuild your reputation and go back to normalcy. You may have to do some hunting before you come by these second chance banks. However the interest is full of websites that can offer you comprehensive lists of all second chance banks in our area.
