Understanding the Basics of a Second Chance Bank Account

Do you need and deserve a second chance financially? We have all made financial mistakes at one point or another in our lifetimes. And while some mistakes are short lived, other financial mistakes seem to follow us for years. In the event that you have financial issues with financial institutions, you may be unable to obtain crucial financial instruments such as checking and savings accounts through traditional channels. If this is the case, it may be time to explore how a second chance bank account can benefit you and your financial life.

What is a Second Chance Bank Account?
A second chance bank account is a checking/savings account offered to individuals who have been denied these same financial accounts through traditional banking channels. Higher fees are often associated with these bank accounts to provide protection to the financial institution offering to open an account for your personal or business use.

Why Do you Need a Second Chance Bank Account?
Sure; you could work on a 100% cash basis if absolutely required. But, consider the headaches associated with paying for utility bills, rent, automobile loans, insurance and cell phone bills with money orders each and every month. Every time a bill is due, you are required to take cash to a financial institution in order to exchange it for a cashier’s check or money order. Then, you must send this money order or cashier’s check to the company in which you owe funds. Every time you must trade your cash for one of these other financial instruments, you are assessed a fee.

In addition to day to day household bill hassles, you must also manage to convert your paycheck every week, every 2 weeks or every month into cash. Again, you will have to find a location that will agree to cash your check, and you will be assessed a fee each and every time you complete this type of transaction. While a few dollars here or there may not seem like much, the figures are astounding when you add them up over the course of an entire year.

Even if you were able to successfully manage paying cash for all of your household bills, you will not have access to one of the most important financial instruments associated with a traditional bank account; a debit card. The MasterCard or Visa logo associated with your bank debit card allows you to complete purchases online, in retail establishments, to withdrawal cash and to apply for credit. Without it, you are limited in a variety of ways financially.

A second chance bank account is exactly that- a second chance. While there may be fees associated with the account initially that are higher than traditional checking or savings accounts, they are typically lower than the fees you are already paying to live an all cash lifestyle. And, once you rebuild your credit through responsible banking practices, you will be able to earn the right to move up the ranks within the banking world over time!


Auto Insurance Pricing Factors

The truth is, getting coverage that is that cheap is all but impossible, and there are many factors that go into automobile insurance pricing. Let’s take a closer look at a few of the big factors, so you can be more informed and hopefully pay less for your coverage.

1. Lapses in Coverage

Having auto insurance is the law in nearly all states in the U.S. but many people cancel their coverage and don’t think twice about it. This is not a good move because insurers look at this as an added risk. People who do not maintain continual vehicle insurance are also more likely to cancel a policy or not pay their premiums. This is why this often overlooked factor plays a big role in rates. If you are switching to a new insurer, just make sure there are no lapses, and you should be able to get a cheaper policy in the future.

2. Your DMV Driving Record

Almost everyone thinks they are a good driver, even people that get into numerous at-fault accidents. It always seems to be someone else’s fault, but many people are just lousy drivers. Car insurers take accidents and traffic violations seriously. If you have received a lot of tickets, especially more severe ones like reckless violations, then you will be paying a lot more to get covered. Those drivers with no crashes and no tickets for a three-year or longer period are considered safe drivers. This should be an important objective to all money saving motorists because having a good driving record will save you 15% or more on automobile insurance. If you have more than 3 tickets on your record, get them cleared up as soon as possible. Go to court and talk to the judge and work out a payment plan or go to traffic school. Once you get your driving record clean, maintain it by obeying all traffic laws and drive safely.

3. Your Age and Driving Experience

This is a super big factor that plays a large role in what you will pay to get covered. Motorists that are between 18-25 pay the highest cost to get covered of any age group. Yes, that means that elderly adults over 80 can get insured for less than a 19 year old teenager. The reason for this is all stat based. Young drivers take more risks driving and engage in super dangerous behavior like texting while driving. As a consequence, this group of drivers get into more accidents than any other and often pay twice as much for coverage. The sweet spot for low rates is between 35 and 60. These motorists, if they maintain a good DMV record, can get exceptional cheap rates. For those young people 24 and under, take a certified defensive driving class and get good grades in school. These two things can save you a combined 15% or more.

4. The Vehicle you Drive

Most people do lots of research on the car they want without ever even thinking about the expense of auto insurance. The type of automobile, year and current value plays a very big role in determining rates. Some cars that you might think would be expensive to insure are cheap and others that you would expect to be really costly are not. For example, a late model Jeep Cherokee is less expensive to insure than many sedans like a Honda Accord. This is because Honda’s are frequently targeted by thieves. Auto insurers pass these costs onto consumers who own these often stolen vehicles. If you are on a tight budget, get a car that is 4 or 5 years old and non-sporty, like a Toyota Camry. Avoid new or used sports cars like a Porsche or Corvette. Also, stay away from vehicles that are always on top of the 10 most stolen automobiles. Do your research on the car you want simultaneously with the cost of insuring it and you will know if you can afford it.

Shop Online for Lower Rates

Now that you have gained an insight into the main factors that insurers use to calculate premiums, it’s time to compare quotes. The best place to comparison shop car insurance prices is on the web. Apply for your free custom quote today and save more of your money on auto insurance.


Ways to Save on Auto Insurance and Gasoline

One of the best opportunities one can get today is cutting his expenditure on auto insurance and gasoline. In today’s economic times a saving on either expense is more than welcome.

Today more than ever people are looking for ways to cut auto insurance and gasoline costs. Everybody is asking themselves, how can I cut my expenses on car insurance along with gasoline?

The answer to, how you can cut expenses on your auto insurance quotes and premiums is, by keeping a clean driving record. Most insurance premiums are calculated based on risk. Auto insurance premiums are even more personalized in that insurers can calculate your personal probability to accident based on your own personal details and records. If you are an irresponsible driver, chances are you will have received a ticket from the authorities or you may have been involved in an accident. Insurance companies may pick this record up during a background check when they are calculating your premium. The more spots you have on your record the higher your premiums. Therefore the best way to save a lot of your hard earned income from insurance premiums is by being a good driver.

Secondly, how you drive will have a big effect on how much gasoline you use. If you want to save money on gasoline you should note that, Drivers who constantly accelerate and decelerate will definitely use more gasoline than drivers who maintain a constant driving speed. Balanced drivers are also safer drivers hence the chances of them being involved in an accident or being in the wrong if they are in an accident are low.

Finally, be a responsible citizen. Pay your public bills and fines on time. Today’s auto insurers just like any other creditor, credit or financial institutions have access to your personal credit history. A bad credit history will mean that insurers will take only cash/instant payments. This will cut you off from their credit line [monthly installment], which if you had access to, would reduce the burden the premium bill will have on your savings and current expenses.


Home Loans With Bad Credit: The Answer for Home Seekers With Poor Credit Ratings

One of the problems caused by the economic downturn of recent years is the exaggerated caution that traditional lenders have in issuing loans. In particular, home loans are hard to come by, which has had a detrimental effect on the property sector. But thanks to the availability of home loans with bad credit, all has not been lost.

The realities of finance today is that many people who might otherwise have a good credit rating have seen their rating fall because of difficulties in meeting debt repayments. Lenders are reluctant to approve home loans for those with bad credit because of the perceived greater risk associated with them.

However, that is not to say it is impossible to get approved home loans despite poor credit. After all, the property market depends heavily on mortgages being granted, and most applicants are intent on improving their credit score anyway, so are determined to maintain payments.

How Bad Credit Ratings Work

For some of us, the whole area of credit ratings is something of a mystery. But while the method of calculation is somewhat complex, the basics are quite easy to grasp. When it comes to applying for a home loan, know why the rating is so low is a good indicator as to what steps to take to improve approval chances.

Every loan that is taken out is registered with credit agencies, and if there is any delay in making repayments, any default on a loan or any bankruptcy rulings, the agency adjusts the credit score of the person in question. So, lenders who offer home loans for those with bad credit are well aware of the credit history of the applicant.

These ratings are not stuck at the same value. In fact, it is constantly recalculated to reflect the newest credit habits, meaning that the score is adjusted up or down according to the latest happenings. It is possible to get approved despite poor credit because recent trends can reflect improving rather than worsening scores.

Positives of Loans with Bad Credit

Of course, by definition, home loans with bad credit are not available at the best possible terms. Having an excellent credit rating is always preferable since the interest rates are lower and loan limits are higher, but bad credit terms can be quite acceptable.

This especially true in the case of online lenders, whose home loans for those with bad credit are available at interest rates almost as good as loans for those with an excellent rating. This is generally because the online lenders are competing with better established traditional lenders, and are willing to accept the added risk.

However, the real positive with such specially developed loan deals is that by issuing approved home loans despite poor credit, a route towards financial recovery is provided. So long as the borrower has the ability to repay the loan over the course of its lifetime, then repayments can be maintained, and credit ratings improved.

Getting the Best Deal

Shopping around is the only way to find the best terms. But this generally means searching the internet and comparing the leading deals from online lenders. With competition so acute online, lenders offer the best range of deals though this medium.

That is not to say that home loans for those with poor credit are not available from traditional lenders, like banks and credit unions. If your relationship with your bank is very good, then it is possible to negotiate a good deal. However, approved home loans despite bad credit will come at higher rates of interest; it is just a matter of how much higher.

Nevertheless, for anyone seeking home loans with poor credit, the important thing is that improvement in ratings can have a very positive effect on the application.