How To Open Savings Accounts Even If You Have Bad Credit
Consumers with bad credit can have a difficult time opening savings accounts or checking accounts. The Chex system has a database of consumers with poor credit. Many banks check this database before allowing a customer to open an account. Here, we’ll present a few ways you can obtain a checking account or savings account even if you’re on the Chex system.
What is the Chex System?
The Chex System is essentially a database that contains information regarding account applicants who have a history of writing bad checks or overdrawing accounts.
Many banks use the system so that they can be alerted to cases of fraud. Chex System also logs the information of people who consistently write bad checks. However, financial institutions are known to rampantly over-report incidences to Chex Systems. For example, even one bounced check can land you in their database.
Length of Time and Dispute Resolution
You’ll remain on the Chex System for five years unless you can clear your incident report. You can obtain a free copy of your Chex System report online, and you can dispute your credit claim to Chex Systems by writing to the following address:
Mail: Chex Systems, Inc
7805 Hudson Road,
Suite 100?
Woodbury, MN 55125
By phone at 800-428-9623 or fax at 602-659-2197
Restrictions and How to Open Savings Accounts
Some banks will prohibit you from opening accounts if you are on the Chex System, but there are a few banks that do allow account holders who are listed on the Chex System. Etrade Brokerage and Compass Bank both offer accounts to persons who are in the Chex System Database. Sometimes there are restrictions on check writing, but at least it’s possible to open an account through one of these banks.
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