When it rains it pours. When one area of our finances suffers, it often takes the rest of our financial well being with it. Credit card debt leads to trouble in all areas including our home, autos, and even our checking account.
Often times when somebody gets in to financial trouble, their checking account suffers. Without enough money to cover expenses, overdraft fees and bounced checks begin to pile up leaving us unable to pay fees and get in to positive territory.
Most of us understand that when we dont pay our bills on time, it may be reported to one or all of the three major reporting agencies but do banks do the same thing? 80% of banks report to ChexSystems. Much like credit reporting agencies, if you have a negative report on file with ChexSystems, it is much more difficult to be approved for an account.
You have the right to a copy of your ChexSystems report free of charge if you are turned down for a checking account based on your report. You can go to chexhelp.com and request a copy of your report.
Many experts advise avoiding companies offering 2nd chance accounts because of the high fees associated with them.
Are there other ways to gain approval for a checking account if you have a negative ChexSystems report?
Yes there are. First, go to the bank of your choice and make an appointment with the branch manager or new accounts manager.
Tell them that you’ve had some problems in the past and ask them for options. For those who had some short term problems but have began to rebuild, often banks will be more receptive to your request if you offer to open a $1,000 Certificate of Deposit for a year.
If, within that year, you have no problems, your problems may be solved. Dont forget about credit unions. You probably live in a city where you are able to become a member of a credit union.
They will often give you a chance to prove yourself especially if you take a class that helps you practice better financial habits. Keep in mind that there will probably be a small fee associated with this class.
If neither of these options work and you need to look for a bad credit checking account, make sure you weigh all of your options. There are many different companies offering accounts with many a wide range of fees.
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