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One of the popular topics these days in the financial world are "second chance accounts." You see, like the name implies, these are special accounts that give people as second chance at re-establishing a relationship with the banking world. A second chance account allows people who are unable to open an account with any other bank.

It may seem like a small thing to have a checking account, but it's not. It's easy to take for granted having one until you actually lose one. Many people who experience financial problems may find that their bank freezes their accounts. Any attempts at opening a new account with another bank company will be met with rejections.

Having no banking account is a big deal -- a very big deal. No bank account is worse than having no credit card. You don't have access to the everyday financial transactions that most people enjoy. You might face problems trying to get paid because you don't have an account for your employer to deposit money electronically. Any sort of loan service will be denied you - no credit company will give out a loan to someone with no banking account. You won't be able to cash checks. In short, life can be difficult indeed to live without a bank account.

The reason for this grief lies with the ChexSystems network.

Chex System gives banks a deposit account verification services to help banks identify people who have a history with mishandling their accounts (for example, a person who has overdrawn his or her bank account and had it shut down). Chex Systems, on paper, sounds pretty useful, and for some purposes, it is. Banks can tell if a person has history of financial abuse. However, not all financial misdeeds are related to fraud or account abuse. Most people end up writing a check that bounces at some point.

The aim of Chex Systems is to:
1. Prevent bank account fraud
2. Keep tabs on bad bank customers
3. Ensure banks are protected

Unfortunately, Chex Systems can cause a lot of problems for ordinary people who have cashed a couple bad checks.

If you find yourself on the wrong side of Chex Systems, then this is where second chance checking comes in. A second chance bank account gives a person who is not able to open any other bank account the opportunity to open a new bank account. This is a pretty big deal because it means you can effectively re-establish a relationship with the banking world again. So if you can't open an account with a bank because of your past financial history, consider looking into second chance banking.

Learn how to apply for bad credit banking account without having to worry about getting rejected.

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