Why Banks Use Checksystems And What Your Options Are If You've Been reported

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