| When you apply for a new bank account, | | | | having money in the account to cover |
| chances are the bank will do their own | | | | them. Find out from the bank or credit |
| version of a credit check. They use a | | | | union how long it takes for deposits to |
| system called ChexSystem, developed by | | | | be credited to your account. |
| Chex Systems, Inc. | | | | Also, keep track of your balance and |
| The ChexSystems report basically tells | | | | reconcile your checkbook with the bank's |
| the bank if you have a history of | | | | statement as soon as you receive it, or |
| bouncing checks or leaving your previous | | | | go online and check it. And, before |
| banks holding the bag (leaving an | | | | closing a checking account, make sure |
| outstanding balance). What does this | | | | all checks have cleared, all automatic |
| mean to me? | | | | debits have stopped and you have paid |
| What it means to you is simple: if you | | | | all fees. |
| mishandled your bank accounts in the | | | | If you are reported to ChexSystems, you |
| past, and find yourself in the | | | | have options Because locating a non |
| ChexSystems database, you could find it | | | | ChexSystems bank is becoming harder and |
| extremely difficult to open a bank | | | | harder. The most reasonable solution is |
| account for quite some time. | | | | to obtain a debit card that opens a |
| Basically, during the five years that | | | | deposit account for you. |
| the negative ChexSystems report stays in | | | | They will allow you to direct deposit |
| the database, you will probably be | | | | funds you receive and pay bills online |
| turned down by most Banks or Financial | | | | or in person without carrying cash, |
| Institutions.How can I get around it? | | | | standing in line at check cashing stores |
| If you try to search out a bank that | | | | or buying money orders. The approval on |
| does not review your ChexSystems report | | | | these cards are 100% guaranteed. |
| before opening the account it will be | | | | Some debit cards are very expensive, |
| pretty hard to find. This is due to the | | | | others offer few features and are |
| fact that over 80% U.S. banks and credit | | | | difficult to use. So, it's best to check |
| unions belong to the ChexSystems | | | | them out online or by phone. |
| network. | | | | With a debit card, you can have all the |
| With check fraud and abuse on the rise, | | | | benefits of a checking account, without |
| you can expect the number of financial | | | | being turned down. Also, you can use the |
| institutions using ChexSystems to rise | | | | card at ATMs, to pay for purchases, or |
| also.The best approach for you is to | | | | shop online. This is a valuable solution |
| stay out of ChexSystems. | | | | if you find yourself stuck with a |
| To do so, avoid writing checks without | | | | chexSystems report on your record. |