-Types of Accounts
-Free Checking Offers
Protecting Your Accounts
As a result of check abuse and fraud, financial
institutions lose billions of dollars annually. In
recent years, a system that works similarly to how
credit reporting agencies operate has been set-up to
help control illegal banking activities. The system is
called ChexSystems. If you mismanage your checking
and/or savings account, expect your name to end up in
the ChexSystems database. By your name being listed with
ChexSystems, you will be adversely affected for five
Who uses ChexSystems?
When looking to open a new account, every bank is
going to run your personal information through
ChexSystems to see what kind of banking history you
have. Specifically if you have ever bounced checks or
have performed any sort of negative banking activity. If
your name is in the ChexSystems database, expect your
bank application to be rejected.
Most people do not know
about ChexSystems or that they are in the database only
until after they are turned down when trying to open up
a new checking account. Many consumers complain that
ChexSystems are used by financial institutions
arbitrarily. Specifically by picking out all applicants
including those that are not intending to commit any
form of illegal activity but have mismanaged their
accounts by overdrawing funds or by accidentally
bouncing a check/s by in the past year or so but have
learned from their mistakes.
It is important to note that if you a bounce one or two
checks, you probably will not end up in ChexSystems.
However, if your account ends up closed as a result of
being overdrawn, then you will end up there.
Common ways to avoid
the ChexSystems database:
- Never write checks when you do not have sufficient funds in your
account to cover them.
- If you have direct deposit from your employer, find out how long it is
going to take your bank to deposit the funds into your
- Always be aware of what your account balances are so that you can keep
your checkbook balanced and avoid bouncing checks.
- Prior to closing your checking account, be certain that all of your
checks have cleared and that there are no pending
** If you believe that you have been mistakenly reported
to ChexSystems, contact them and dispute the item.
How to improve your bad checking status:
Did you know that there are checking account
schools? If you have been denied a checking account
because of careless mismanagement, and not because of
fraud, you should consider taking one of these classes.
It is possible that the checking account class will help
you obtain a new account in less than five years.
There is a one day, six hour checking account class
offered by Get
Checking. These classes are typically run by
Consumer Credit Counseling Agencies. Fees will vary from
state-to-state but typically range between $35 - 50. As
a student, you will learn everything there is to know
about managing and owning a checking account and how to
be fiscally responsible. Individuals that pass the final
test will be eligible to open a checking account at
their participating bank. Please note that in order to
receive your certificate, you must also prove that any
debts owed as a result of bounced check have been