About the Chex System - Opening a New Bank Account With Bad Credit

Chex Systems Inc. is a network of financial institutions that reports your mishandled checking or savings accounts to its banking community. They keep a database to track negative information regarding your history of accounts and provide this information to financial institutions inquiring whether or not to allow you to open a new bank account.

They only report to those institutions that pay a member fee but this is comprised of about 80% of banks. Are you trying to open a new bank account? Did you mishandle your checking or savings account by not paying fees or bouncing one too many checks?

When you do get the unfortunate occurrence of being blacklisted by Chex Systems, you still have other opportunities to get a bank account. If you pay your fees that Chex Systems says you owe, many banks will allow you to open a savings account.

There are many non chex system banks. They opt to use the credit bureaus and rely on your credit score to approve or decline accounts. Many credit unions do not use either system of checks and balances and provide an easier way to opening an account.

Here are some tips for dealing with being on the Chex systems blacklist:

1. Do not close any of your banking accounts. It's always good to have two accounts in different banks, especially with a shaky credit history. Most importantly, keep your accounts positive. Pay all outstanding fees as soon as you learn about them.

2. Once you have paid all your fees and satisfied the bank that reported you, obtain a chex systems report to make sure that is the only negative listed account; type a short letter explaining your new position and have that new information inserted into your Chex System file.

3. Banking officials always have the option to overrule Chex Systems by opening an account for you, but this probably will not happen until to pay off whatever Chex systems says you owe.

4. Almost 80% of banks use Chex systems, however, there are a few that do not. For example, many credit unions do not use Chex sytems. You may also want to inquire into a brokerage account that comes with check writing features.

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