In this economy, many people are having a hard time paying their bills, and the result is often banking overdrafts as they try to juggle their income against mounting bills due. If you have a history of writing checks for which you have insufficient funds, your bank may close your account, and when you try to open one at another institution, you may find yourself denied. Why? What can you do about it?



Why am I being denied a new bank account?

U.S. banks and credit unions report excessive overdrafts, as well as ATM, savings account, and debit card abuse to companies like ChexSystems or Telecheck to protect themselves and other banks in the future. They also report to those companies if they are unable to collect for an overdraft, ATM transaction, or automatic payment they have honored on insufficient funds, sometimes within only a few days and even if the amount is small. If your account is closed for “cause,” your information will be flagged as a warning.

Each of these incidents will remain on record for a full five years. Many banks will not allow you to open a checking account if your previous accounts show any problems reported to ChexSystems. (If you are uncertain as to your status, you are entitled to see your ChexSystems report once a year for free, just as you can obtain a free credit report from Transunion, Experian, and Equifax.)

What can I do about it?

Luckily, some financial services institutions realize the plight of many people trying to maintain sufficient balances in their checking accounts, especially with today's economic problems. Believe it or not, some of these companies offer incredible deals – good enough that even those with a good banking history may want to check them out.

Look for companies that are FDIC insured and that offer checking accounts with some of the services below:

No transaction fees

Some companies have no transaction fees. This will allow you to write checks, transfer funds to any U.S. checking or savings accounts, make person-to-person epayments, or use your ATM or debit card as often as you need, with no cost to you.

No minimum balance

Many require no minimum balance, therefore saving you those pesky fees when your account falls below a certain dollar amount.

Free online banking

Some companies also allow free online banking, making it easier to pay those monthly bills from the comfort of your own home. The money you can save over a year's time can be substantial.

Free MasterCard ATM/debit cards

This type of ATM/debit card can be used anywhere in the world where MasterCard is accepted.

Free overdraft protection/no overdraft fees

Some institutions offer free overdraft protection and charge no overdraft fees up to your overdraft limit. They will honor the checks, ATM withdrawals, and debit card purchases, even if you do not have those funds available in your account. Overdraft fees at some banks can be outrageous, causing a substantial loss in money if you make a simple mistake in calculating your balance.

As you can see, being denied a checking account no longer has to be the financial kiss of death. After all, you need a way to pay your bills without having to obtain money orders or pay in cash. These companies willing to open second chance checking accounts can offer a cost-saving alternative. One of the best things about these second chance checking accounts – open online! With a direct deposit, you can open your account from home or wherever you have use of a computer and be on your way. What could be easier?

For more information on how you can set up your own second chance checking account online today, visit http://www.probityfinancialservices.com/.