Getting a Checking Account With a Low ChexSystems Score




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You may think that you can’t get a checking account due to your credit score but it actually a consequence of a low ChexSystems risk score. ChexSystems is a reporting system similar to credit reporting except it reports on bank account activity. Each time you have a bank account closed due to high, unpaid overdrafts or fraud, your ChexSystems risk score drops.When you apply for a new bank account, the bank will check your score to determine whether or not you are eligible to bank with them.
 
If you have a low ChexSystems risk score, you will have a hard time opening a checking account because banks consider you a high risk. After being declined by multiple banks, the situation may seem hopeless but you can still get a checking account.
 
One option is to repair you ChexSystems risk score. Order a copy of your consumer disclosure report here to view the items on your record. You can order a free report every 12 months. Scan your report for any mistakes. If you find them dispute it. Next, pay off the debts listed on your report. Once an item is paid of off, it will be removed from your report.
 
Your next option is to open a second chance checking account. These accounts have monthly fees but are offered to those that are unable to get a regular checking account. Most of them will offer you an upgrade to a regular checking account after building good rapport with your second chance account for a certain period of time. Nerd Wallet has a great list of second chance checking accounts available in each state and nationwide.
 
If all else fails, you can get a prepaid card. These do not come with the perks of a checking account but can still be worth at least looking into. An increasing number of banks are now offering prepaid cards because they are realizing their value. American Express even offers one! As prepaid cards become more popular, they are including more features. Most of them allow direct deposit and Paypal's prepaid card that you can link to your Paypal account so that you can transfer money with ease. If you can’t get a regular bank account, prepaid cards are a pretty solid option.
 
When you are unable to get a checking account, don’t give up. If you have the time and money, repair your ChexSystems risk score. If you need to get an account immediately, and are confident in your ability to handle an account at this time, open a second chance checking account. If you know that your banking habits aren’t great yet, get a prepaid card, which you can’t overdraft. Just because you have been denied a regular checking account, it doesn’t mean you don’t have options.


By: Alecia Stanton



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