Non ChexSystems Banks
If you have been placed into chexsystems you are in a difficult spot. This will prevent you from opening a checking account and really hurt your credit score.
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 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.
This card works just like a checking account. Your card is accepted over the phone and online.
Your card will also provide you with an opportunity to build a positive payment history. The prepaid account now visa gives you a free service called credit builder. This service will record the bills you pay with bill pay and report that information to a credit reporting agency. This can be used to show future lenders you are credit worthy.
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 are:
- Fraud
- Overdrawing your account and the bank is unable to recover payment
- Using false information to open an account
Once you have this mark on your credit you will not be able to open a checking account. Also your credit will be damaged.
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 using a prepaid credit card is a great alternative to a bank account. It will do everything a bank account would and more.
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