OnPath Credit Union

Although the ease with which you can open a second chance checking account does vary based on the institution and the process by which they approve these accounts, credit unions are typically more flexible.

There are several reasons why this is the case, but on a basic level, it has a lot to do with their focus on the community and the well-being of individual members. Credit unions are not-for-profit organizations founded for the benefit of a specific group of people rather than a profit-making enterprise intended to pay dividends to investors and owners.

The fact that credit unions are not driven by profit naturally allows for more lenient policies in some respects, including on provisions and requirements for second chance checking accounts. For example, members who open an OnPath Federal Credit Union second chance checking account automatically get a debit card as well as access to mobile and online banking.

Unlike the second chance checking accounts at many banks, OnPath FCU offers a path toward a version of overdraft protection known as Courtesy Pay. Second chance checking customers who remain in good standing for 60 days can get a $100 Courtesy Pay limit, which can be increased to $300 after six months (dependent on management approval). 

An Emphasis on Community

OnPath Federal Credit Union was founded for the benefit of members who live, work, worship or go to school in the New Orleans area. The institution is committed to the financial success and well-being of people in the New Orleans community – including those who need a second chance. National banks don’t have that same community-oriented commitment to their customers.

A credit union may also have more latitude with members who have several different products or accounts with the institution. If you already have an existing relationship with the credit union through a savings account and auto loan, the credit union is more likely to take into account the totality of your behavior with all those products rather than base their decisions solely on a report from a third-party organization.

Emphasis on Education and Support

Credit unions attempt to be a one-stop solution for the financial needs of their members, and this extends beyond simply providing auto loans, mortgages, checking accounts and share certificates. This also includes financial counseling and assistance with money management.

All OnPath FCU members have access to a variety of exclusive perks, including financial education seminars about improving credit ratings, buying a home and general budgeting advice, as well as one-on-one financial and credit counseling services.

Credit unions recognize that their success is dependent upon the success of each individual member, and they take extra steps to improve and enhance the financial position of those members.

Repairing Credit Scores and Banking Histories

While credit scores get more attention, largely because they impact so many important purchases in people’s lives, they’re not the only financial scores people should be concerned with.

A lesser-known score, but one that can potentially have a larger impact on the lives of banking customers, is the banking score calculated by ChexSystems and similar rating agencies. These scores are based on “bad” behaviors that banks and credit unions track and report, like overdrafting a checking account, bouncing checks, maintaining a negative account balance or having unpaid fees.

Banks and credit unions check banking history reports before approving account applications, and a poor rating can result in denials. Some banks and credit unions offer second chance checking accounts, like the Rise Checking account at OnPath Federal Credit Union, to provide members with a path back to normalcy without having to wait years for the “bad” behaviors to fall off their report.

With Rise Checking, OnPath FCU members gain access to many typical checking account features, including a debit card, mobile banking and online banking. Eligibility for opening a Rise Checking account is determined by management. The standing of the account is also monitored, with more privileges and features being unlocked the longer the account stays in good standing.

Rise checking account holders who maintain good standing for at least a year may have the opportunity to transition over to one of our other checking products – regardless of what their banking history report says.

If you’d like to learn more about Rise Checking from OnPath FCU, call us today at 800.749.6193.