Financial mistakes happen, but they can result in your checking account being closed and prevent you from opening new accounts. However, there are options to get you back on your feet. A fresh start checking account, also known as second chance banking, allows you to rebuild your banking history and recover from any financial challenges you may have faced in the past. Continue reading to learn how fresh start checking accounts work and if they’re right for you.
A fresh start checking account offers people the opportunity to have traditional banking services if they were denied a checking account. This can happen if the person has a ChexSystems record, which is an agency that gathers information about closed bank accounts. It’s often the result of having too many unpaid negative balances, bounced checks, or fraudulent activity.
While this does not apply to everyone, fresh start checking accounts can help people with these kinds of records get a checking account. And it can help rebuild trust with financial institutions, eventually leading to traditional accounts and access to more financial products and services.
To get a fresh start checking account, you can typically visit a bank or credit union, like Cyprus CU, that offers these types of accounts. Institutions have different requirements to qualify. They will likely review your past account history, but a ChexSystems record is not a key consideration; rather, it is their own individual factors that determine eligibility.
These accounts commonly have features like:
Debit card access
Online and mobile banking capabilities
Direct deposit and bill pay
Check writing
However, they may have some limitations, including:
Lower daily spending or withdrawal limits
Temporary restrictions on overdrafts or checks
Monthly fees or participation requirements
Second-chance banking is a good option for you if you’re having trouble getting approved for traditional checking accounts. It’s a good alternative if you’re looking for essential banking products and want to keep your hard-earned money protected, avoiding a reliance on cash or prepaid services. You can also rebuild a negative banking history and increase your ChexSystems score with responsible use
To ensure your account helps you recover your banking history, manage your balances to avoid fees and overdrafts, monitor your transactions regularly, and use direct deposit to keep your account in good standing. Before applying, consider the features available, any fees, and access to physical locations. With the right approach, you can get back on the path of financial stability and reach greater financial goals.
Cyprus Credit Union’s Fresh Start checking accounts can help you overcome challenges with your banking history. Open an account with just $25 and enjoy low monthly fees, access to Home and Mobile Banking, debit card access, and no deposit fees.
And with responsible account management, you can upgrade to Basic Checking or Dream Rewards Checking to get the most out of your Cyprus membership. Take back control of your finances, apply for a fresh start today!