Opening a savings or checking account is a simple task, or so many of us think. We assume that it is an automatic process and all we have to do is walk into a financial institution, hand over our ID and, voila, the account is open. That is not true. As a matter of fact, up to 25 percent of all applicants are denied a bank account based on information provided by a a company named ChexSystems.
How Could You Be Denied a Bank Account?
Most people have never heard of the company, but it is a huge firm that tracks your financial history. Bounce a check, have an account closed for suspected fraud, or take out payday loan and you are on their ”naughty” list. That information will stay on your report for up to five years unless you successfully contest the item.
That database affects the average person in one clear-cut way: nearly every bank, savings and loan, or credit union in the United States will check with ChexSystems before issuing a new account to anyone. Even if you are an existing customer, many institutions will run a check if you want to open another account with them. So, what can you do if you have problems opening a bank account?
Here are three options:
- The first step is to go to consumerdebit.com. This is ChexSystems website where you will find a great deal of information. You can also find the steps needed to request a free copy of their file on you. Once you have this information, you can dispute any incorrect items.
- The next option is to go completely cash. This only works if you are close to a hard payment location for each of your bills.
- If a cash only lifestyle is not feasible for you, you will need to look into pre-paid debit cards. These tools are great for many people as long as you do your homework. Many of them are rife with hidden fees that can bite deep into your income. Fortunately, you can avoid the majority of these fees by having your pay direct deposited into the pre-paid account.
The financial meltdown that the world saw from 2008 on has expanded the list of people who are unable to open a traditional bank account. If you are one of the masses who cannot, you options are fairly limited if the information about you is accurate. The light at the end of the tunnel is that the information is only kept on file for five years. You may just have to play a waiting game.
This article has been Credit Repair Zoom, an authority resource for people interested in legal credit repair options. Remember, if there are inaccurate items on your credit report, a qualified credit consultant can help you contest them.