Getting Back on Your Financial Feet If You Are on ChexSystems
A checking account seems like the one of the most basic things in our lives, and certainly the most basic in our financial life. Most of us have had one since high school. It’s something we really take for granted. Until that moment when either a bank closes our account without warning or we suddenly get turned down for a new checking account!
ChexSystem is a consumer credit reporting agency that banks use in the new account verification process. They report to banks if you have had overdraft troubles, and unsatisfied negative balance, depositing or writing bad checks, and any suspicious account activity. Being listed on the ChexSystem at all can prevent you from opening a new checking account for up to five years since most major banks and credit unions now use ChexSystem in the new account process.
If you find yourself listed on ChexSystem, there are several things you will want to do to get yourself back on your financial feet. The first is to make sure that you don’t have an outstanding balance at your former bank or banks. If you do, try and settle that debt as soon as possible. When you settle your debt in full, ask the bank for a letter or statement confirming that your debt is paid in full. Once you do, you should contact by ChexSystem by mail informing them in writing that your debt is satisfied, including a copy of the letter or statement from the bank, and that you should be removed from ChexSystem. You can write to ChexSystem at:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
In the event that you have a more serious problem that a simple letter just won’t solve (and most of us do or did), then there are several things you can do. The first thing you want to do of course is to try and get some semblance of a checking account. Many banks or other financial institutions now offer what are called “second chance checking accounts”. And that is exactly what they are. They offer a second chance to those of us who have messed up somewhere along the way. They almost always involve a monthly maintenance fee and some offered by larger banks might even require you take a short class in bank account management.
There are also some companies that will offer a version of checking accounts, but with some significant differences. These accounts aren’t true checking accounts offered by traditional banks. Many don’t come with checks, but rather provide only a debit card. In addition, with these accounts you can only deposit money by direct deposit from your employer or a cash deposit through MoneyGram or a similar company. The problem here is that if you still get physical checks, you will need to cash them first at a checking cashing store (paying their fees!) and then deposit the cash. Accounts like this can help you get by until you can get a true checking account and you can improve your credit by using the debit card to pay bills online, which is a good.
Be very careful when you offers on the web to purchase lists of banks that do not use ChexSystem. These are primarily ripoffs since they are bound to be out of date very quickly. ChexSystem adds member banks and credit unions all the time, and your particular list was probably not written yesterday. Be skeptical as well by any offers that offer to help you get off ChexSystem for a fee. With just a little education and a little effort on your part, there isn’t anything they can provide that you can’t do yourself for free. Let’s face it, we all got onto ChexSystem for some reason like not watching our spending, so why make it worse by continuing that trend and waste money on these products and offers.
Being on the ChexSystem can be embarrassing when you get rejected for a checking account, but it’s nothing really to be ashamed of. We all make mistakes in life and it’s just a matter to getting ourselves back out and back on our feet.
Kevin Roum has been on the ChexSystem and knows how to deal with it through personal experience. He shares some tips from all over the web on his website http://www.chexmate.net Article Source:http://www.articlesbase.com/personal-finance-articles/getting-back-on-your-financial-feet-if-you-are-on-chexsystems-907483.html
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