No ChexSystems Checking Accounts
By Matt Douglas | November 11, 2008
If you are in chexsystems you are in a tough spot. This will prohibit you from opening a new checking account and damage your credit score.
There is an alternative; you can get a prepaid credit card. Most offer direct deposit for free.
This will save you money on check cashing fees. Also your card can be used to pay bills.
There is a feature called bill pay that will write real physical checks from your account to a business or individual. This will save you money because you will no longer need to purchase money orders.
As you can see this card works just like a checking account. Your card is accepted world wide and can be used over the phone or online.
Additionally with the prepaid account now visa you can enroll in another free service called credit builder. This service will record the payments you make using bill pay and report that information to a credit reporting agency. This can be used to show future credit worthiness.
What is ChexSystems?
It is a group of financial institutions that share information. They do this to screen out potential problem customers. You can be placed in it for having an account closed for reason.
Reasons can include:
- Fraud
- Repeated overdrafts without the bank being able to collect payment
- Opening an account with false information
Once you are placed into chexsystems it will be next to impossible to open a checking account. In addition your credit will be severely negatively impacted.
This mark will remain on your credit report for 5 years. You should be aware that you may be able to open a new checking account, but once the bank runs your information and discovers you are in chexsystems they will close your account.
In sum using a prepaid credit card is a great alternative to a bank account. It will do everything a bank account would and more.
Topics: Credit |
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