If you are in chexsystems you are in a tough spot. This will prohibit you from opening a new checking account and damage your credit score.
There is a great alternative to a checking account. You can have a prepaid credit card that will give you free direct deposit.
This can save you money by no longer paying expensive check cashing fees. In addition you can pay your bills with this card.
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 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.
– Repeated overdrafts without the bank being able to collect payment
– Using false information to open an account
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.
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