Non Chexsystem Checking Accounts
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 free feature called bill pay that will enable you to pay your bills by writing a check from your account. This will save you money on purchasing money orders.
This card is just like a checking account. It is accepted over the phone and online, and can be used worldwide.
In addition your card can be used to build positive payment history. With the account now prepaid visa you can sign up for credit builder for free. This service will record the payments you make using bill pay and report those payments to a credit reporting agency. Providing you with a method to show future lenders you are credit worthy.
What is ChexSystems?
ChexSystems is a way for banks to screen out potential problem customers. You can be placed into chexsystems if you had a bank account closed for reason.
Reasons include:
- Fraud
- Overdrawing your account and the bank is unable to recover 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 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.
