If you are in chexsystems it will be impossible to open a checking account. In addition your credit score will be damaged.
However you do have an alternative to a checking account. You can get a prepaid credit card that will give you free direct deposit.
This can save you money on having to pay check cashing fees. You card will also be able to 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.
This card works just like a checking account. Your card is accepted over the phone and 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?
This is a group of financial institutions and they use this information to screen out potentially problem customers. You will be put in it if you have had an account closed for reason.
Reasons include:
- Fraud
- Repeated overdrafts without the bank being able to collect payment
- Using false information to open an account
When this happens to you will be unable to open a new checking account. Your credit score will be significantly lowered.
This mark stays on your credit for 5 years. Be aware that you may be able to open a new checking account but it will be closed once the bank runs your information and learns you are in chexsystems.
In sum if you are in chexsystems a prepaid credit card is a great alternative to a checking account. It will give you all the benefits of a checking account and more.
