People with bad credit history usually end up in a TeleCheck or ChexSystems trap. What is this kind of trap? It’s something that could prevent you from enjoying your life and financial freedom. Simply put, being on TeleCheck or ChexSystems means you’ve done anything from bouncing checks to committing bank overdraft fraud. In any case, you can’t open a new checking account with any bank because you are considered a credit risk.

When banks are turning you down left and right, you find yourself stuck between a wall and a hard place. The only thing you can do is to pay with cash or money order. Keeping your money in a small box will be a way of life to you, and you panic at the thought of doing business with people who only pay with checks. How will you receive your salary if your boss insists on paying with checks? This kind of lifestyle won’t work in the long run. Every adult needs to open a real bank account to keep his personal and business life going.

But having a poor bank record, or a bad credit history, can make it difficult for you to open an account. Worse, your banks might have reported your history of overdrafts to services like Telecheck or Chexsystems, which is the equivalent of being blacklisted by all the other banks that use these services. The thing is, you may not be able to clear your name from the lists for five years.

If you’re listed on Chexsystems, you have several options. You can quickly deal with the glitches and errors in your bank accounts if you can find them. Or, you can apply for a second chance checking account while you’re waiting for Chexsystems to re-evaluate your listing.

Second chance checking is a service provided by some banks and financial institutions that know the value of tapping into the bad credit market. These second chance accounts rival “traditional” bank accounts in that the banks that offer them are willing to gamble on people who want to start afresh and change their financial strategies.

If you’re fed up with not being able to issue checks and pay for big items, a second chance account may be what you need to be more financially stable. The best offers have overdraft safeguards that will work for the consumer.

Is there a catch? There is. You will notice that second chance accounts will charge more for fees than regular checking accounts. You may also be forced into a checkless system. But the good news is that you can use this account to change your spending lifestyle.

You will be given a check card with a Visa or MasterCard label. With this card, you will have the ability to monitor your account. This means you know exactly where you stand financially, at all times.

Take this opportunity rebuild your credit score by paying your ordinary bills on time i.e. rent, utilities, cell phone and others, using your second chance account.