Can a Second Chance Checking Account Make the Same Types of Purchases as a Traditional Checking Account?

Yes – any purchase you can make with a debit card can be made with a second chance checking account. Although you don’t receive physical checks with a second chance checking account, you are issued a debit card and, if needed, can request a cashier’s check from an OnPath Credit Union branch location if a payment or purchase must be made with a check.

Although there are second chance account restrictions on certain types of banking services, what the account can be used to purchase is essentially the same as any other checking account.

The Similarities

In terms of how the checking account functions, there are not all that many differences between second chance checking accounts and traditional checking accounts. Most second chance checking accounts, including OnPath Credit Union’s Rise Checking, come with a debit card and access to ATMs.

Second chance checking members also have access to the same online and mobile banking services as all other checking account holders at the credit union or bank.

Other standard checking account services, like direct deposit, are typically included as well.

Rise Checking from OnPath comes with a handful of other valuable perks as well, like no minimum balance requirements, a low minimum opening deposit of just $25 and free online bill pay.

The Differences

Second chance checking accounts, including Rise Checking, do come with some restrictions. Many second chance accounts require monthly fees, which aren’t always waived even when you maintain a high account balance.

Second chance checking accounts typically don’t offer check writing privileges, although you can still acquire cashier’s checks if you have an adequate account balance to cover the check.

Whether you can make certain purchases or transactions, like using your debit card for renting a car, will depend on the rental company, your credit rating and your account balance.

Most second chance checking accounts do not offer overdraft capabilities or protection in any form. In many ways, the account policies are specifically intended to prevent overdrafts and the sometimes high fees that can be associated with them.

OnPath Credit Union’s Rise Checking is a little different and may grant qualifying second chance checking customers the opportunity to enroll in Courtesy Pay.

Whether you are granted additional privileges may be dependent on management review and approval of your account, which isn’t typically a requirement for traditional checking account options.

Restrictions Based on Having a Second Chance Checking Account

For the most part, having a second chance checking account won’t restrict your ability to enter into any financial transactions. Renting a house or apartment, qualifying for a loan or applying for a job doesn’t normally require a formal inquiry to the agencies that report on banking history.

However, those things may require a background check and a credit check. The underlying reasons you have had to enroll in a second chance checking account may appear on those types of reports, but having a second chance checking account won’t usually be the direct cause of application denial.

What Sets Rise Checking Apart From Other Second Chance Checking Accounts?

Rise Checking offers banking customers more opportunities to not only rapidly regain full banking privileges but also restore access to services designed to prevent rejected purchases through Courtesy Pay. Rise Checking users who remain in good standing for at least 60 days may be granted a $100 Courtesy Pay limit. This limit can be increased to $300 after six months based on account usage and management review.

Perhaps most importantly, Rise Checking members who remain in good standing for a full year may have the opportunity to roll their Rise Checking account into a traditional checking account, circumventing the long wait that may be required for past banking infractions to fall off your bank history report.

At OnPath Credit Union, we understand how important access to a checking account can be for paying rent, utilities or making everyday retail purchases. We don’t think past infractions or unpaid overdraft balances should prevent you from having access to the financial services you need. Everyone deserves a second chance, and we encourage people with poor banking histories to contact us to learn about our second chance checking account – Rise Checking.

Call us at 800.749.6193 to find out if you qualify.