opening bank account

In the old days, opening a bank account used to be a piece of cake. Back then, you could walk into the bank, fill out an application, and maybe make a small deposit to get things started. That was it: story over, case closed.

Nowadays, when you apply for a new checking account, about 80% of banks refer to something called Chex Systems to verify that you meet a certain minimum standard of eligibility for being perceived as a worthy customer.

Chex Systems works a bit like a FICO or credit score system, except there is no actual score displayed to your bank. Rather, you simply appear on Chex Systems or you do not. Furthermore, if you appear on Chex Systems, there is little explanation given to the bank as to the reason you appear there (which can include anything from minor infractions to outright bank fraud). In other words, the system gives the bank very little leeway in terms of making an informed decision about your eligibility; you are either "good" or "bad" in terms of your customer-worthiness.

In response to this sometimes useful but rather inefficient Chex Systems process, many banks have begun sprouting up that do not use Chex Systems at all to evaluate new customers. Some of these banks use this fact as a selling point to attract prospective customers who may have had trouble getting approved by traditional banks. These banks taut their offerings simply as second chance checking accounts.

If your checking account application has been recently rejected by a bank, you may want to open a second chance checking account online. Here are the 3 steps you need to take to do so:

1. Find a second chance checking bank:

You can find a second chance checking bank by making a search on the Internet. Also, try checking with friends and colleagues who may have gone through a similar situation and have found a second chance checking bank they like. Here is a reputable online bank that offers second chance checking: http://www.escape-overdraft-fees.com/.

2. Go through the application process:

The application process can be conducted online and usually takes about 10 to 30 minutes. You need to start by providing basic information like name and address. Then, you set about confirming your identity by answering some miscellaneous questions posed to you about past payment history, residential addresses, and the like. (This step is taken by the bank purely for security purposes - to make sure nobody tries to falsely sign up for an account under your name!).

3. Fund your account:

Finally, you fund your new account with a small deposit. Funding your account can happen at the time of application or at a later date.

Online second chances online banking offers people who could not otherwise be approved for a checking account a viable alternative for getting the checking account they need in order to conduct their personal financial lives.

For more information about online second chance checking and how it works, check out: http://www.squidoo.com/open-second-chance-checking-account-online/.

Article Source: http://EzineArticles.com/?expert=Robbie_T._James