When you’re stuck in a situation where you aren’t able to open up a new bank account, you have a couple of different scenarios that are available to you. You can either use second chance banking or carry around cash everywhere you go. Neither of these choices come with the same benefits that a regular bank account does, but they will work until you’re cleared from Chexsystem. In this post I want to compare these two so that you can figure out which one is right for you.
Second chance bank accounts are available to anyone, so don’t assume that you aren’t able to qualify for one. They work similar to regular bank accounts, except that they aren’t through the tradition financial institutions. Instead they work through internet based companies that back your money up. Most will require that you have direct deposit for your paycheck, but not all of them do this. You’ll get benefits like overdraft protection, bill pay, online banking, and some will even offer loans. Ironically, depositing cash is normally done at a check cashing store.
Check cashing is just that, and it’s way more expensive than a second chance account. You’re going to pay a percentage of your paycheck for them to turn it into cash. Not only that, you’re stuck carrying around cash, which carries its own set of risks. Cash is easy to lose, dangerous to have lots of, and hard to keep track of when it’s spent. The biggest benefit that comes with check cashing is that it’s extremely easy. All you do is walk into a check cashing store and walk out with your money.
If you’re concerned about managing your finances and protecting your money, second chance bank accounts are the best way to go. If you’re looking for the easiest solution until you are cleared from Chexsystem, go with check cashing. The choice is yours, but I would always recommend going with the safer solution. Money is tough to replace, so do everything you can to make sure you keep it!