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ACU Blog  / 5 Situations Where You Might Apply for a Second Chance Bank Account
17 August 2020 / 3 minute read

5 Situations Where You Might Apply for a Second Chance Bank Account

You might be wondering what a second chance checking account is. Here are 5 situations that might lead someone to get a second chance checking account
second chance checking situations

Having a checking account at a reputable bank is important for our financial success and freedom. Being a member of a credit union or having a checking or savings account established at a bank shows that you are responsible with your money.

Sometimes, though, even as we all try to ensure our finances are running smoothly and bills are being paid on time, properly maintaining a bank account can be difficult. This is especially true when unexpected things happen that are often beyond our control. Bad things happen to good people, and often it is damaging to us financially. And when things are out of our control, there is sometimes not much we can do at the time.

Unfortunately, things like unpaid overdraft fees and other common banking mistakes in the past can affect your ability to have access to obtain approval to open a checking account in the future. If you find yourself in this situation, a second chance bank account may be just the opportunity you need. 

Second chance banking can be the key you are looking for to help you reestablish your finances after difficult money matters like these that can wreak havoc on your money management skills. Here are some of the most common reasons why banking customers need a second chance bank account to help get their finances back in order.

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5 Situations Where a Second Chance Bank Account Can Help

1. Unforeseen Medical Bills Can Cause Financial Hardship 

When unexpected medical situations arise, it can be hard to manage your finances properly. Bills from doctors, hospitals, and expensive medicine can really add up when you are sick and have no or extremely limited income. Second chance checking is ideal for those in situations like this who went through a financial hardship due to medical bills but are now trying to become financially stable again.

2. Divorce, Death or Other Life Altering Events Can Impact Monthly Cash-Flow

When your finances are impacted due to a life altering event like a divorce or family death, the result can quickly lead to negative issues with your bank account. Learning more about opening a second chance checking account can help you realize how to gain financial freedom again and help you get your money issues back on track for the long haul.

3. Lack of Adherence to Monthly Budget Can Lead to Late or Unpaid Bills

Staying on track with your monthly budget is not only crucial for maintaining a good credit score, but it also allows you to earn a good standing with your bank or credit union. Late and unpaid bills weigh heavily on your credit report, making it incredibly difficult to obtain loans or credit cards at your local bank when you need them. A second chance checking account sets you up with a better way to manage your money, which also increases the likelihood of having more success in paying your bills on time. 

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4. Loss of Employment or Decrease in Wages Can Negatively Affect Your Finances

Anytime you lose a job or experience a reduction in wages, this will obviously have a huge effect on your financial well-being. Not having a steady income can cause banking problems with leads to an account being closed and denied access at future financial institutions.

5. Youthful Exuberance in Spending that Comes Back to Haunt You

We are all guilty of being a little extravagant in our younger days. Undisciplined spending and careless money choices when you are young can get you in a bad spot quickly. Second chance checking accounts are a valuable asset when it comes to fixing those issues from our younger years and building a secure financial future.

Second Chance Bank Accounts - Your Local Credit Union Can Help

If you have had some tough times financially in the past, we understand. If you are unable to open a traditional checking account due to past banking discrepancies, it may be a good time to consider a second chance checking account from your local credit union.

Our second chance checking accounts are a lot like a traditional checking account, but are created to help you build your credit and establish a better history of banking now so that you can apply for a standard checking account in the near future.

These second chance accounts may require monthly fees or that you maintain a certain minimum balance, but the benefits are definitely worth it because you truly get a second chance to improve your banking relationships and overall financial status.

Do not let past financial mistakes affect your long-term money goals. Learn more about second chance banking and the opportunities it presents to help you get back on your feet and establish a secure financial future for you and your family.

For more details on the benefits of a second chance bank account, review our "What You Need to Know About Building Credit and Second Chance Checking Guide".