If you have ever experienced bankruptcy, you would know the uncertainty that it brings to your financial life. You won’t be able to apply for a credit card, get a loan, or even open an account in most of the US banks. So where do you go from here? If no financial institution is willing to put forward a helping hand, what can you do to improve your situation?
Luckily, there are still some tips and methods left that you can try to fix the issue and get back your financial freedom.
The most important step here is to be able to open a bank account after bankruptcy. Although most of your options will be limited, there are a few ways that you can try and we will have a look at them below!
1. Apply for a Basic Bank Account
You have to visit the bank that allows you to set up a basic account. This obviously cannot be done in the same bank where you went bankrupt, so you have to look for a different option. A basic bank account will let you enjoy all the services that your current account offers. It might also come with the option to apply for a debit card, but that can vary from one bank to another.
Once you have a basic bank account, you can use it for money deposits and for receiving funds like your pay from the employer. If you open a basic account in a bank that does not use Chexsystems, that would be even better, since it won’t scrutinize your banking history.
2. Open a Secure Bank Account
The second option you have is to apply for a secured bank account. This is a type of account that is initiated after you deposit a certain amount of money as security. Therefore, if you have a bad history that you wish to improve but banks don’t let you set up an account, then you should consider applying for a secured one instead.
Secured bank accounts are also known as non-Chexsystems accounts or second-chance accounts that can help you rebuild your relationship with banks in struggling times.
3. Get in Touch with a Local Credit Union
There are many small banks or local financial companies that you can approach. Their main job is to help people who have just gone through bankruptcy by offering them finances on favorable terms. They may even let you open a new bank account provided you can follow some of their terms and conditions. For this purpose, you would have to explore all such services around your area and then get in contact with a credit union that seems like the best choice to you.
4. Offer a Collateral
It makes sense why banks are not willing to trust you anymore. It would be hard to find one that will let you continue with a bank account without getting some sort of security from you. You can opt for protection by depositing some money to the bank in the form of a certificate of deposit. This might help the bank reconsider you as a customer and allow you to set up a checking account. However, keep in mind that getting a second chance also means you have to be on your best behavior or you will end up with even greater debt later on.
5. Contact a Bank That Is FDIC Insured
Regardless of the bank that you decide to contact in this tough time, always make sure that it is FDIC insured. This means that the bank and your deposit will be protected by the Federal Deposit Insurance Corporation. In case any unfortunate event takes place, you will be assisted in dealing with the collapse. This is very useful especially when you have already faced bankruptcy and cannot take the risk of going through even harder times.
Wrap Up
As you can see, opening a bank account after bankruptcy is not an easy job although it is possible in a number of ways. The real trick here is to not panic when most of the banking institutions turn you down. This is supposed to happen since you have a shady banking history that is not easy to trust. The good news is that not all banks will turn you down, so you simply need to find one that is easy to get approved for.
Banks that don’t use Chexsystems are always the safest option. They are most likely to accept you as an account holder so try your best to find this type of service in your area!
