| When you apply for a new bank account, chances | | | | or credit union how long it takes for deposits to be |
| are the bank will do their own version of a credit | | | | credited 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 you | | | | receive it, or go online and check it. And, before closing |
| have a history of bouncing checks or leaving your | | | | a checking account, make sure all checks have |
| previous banks holding the bag (leaving an outstanding | | | | cleared, 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 your | | | | If you are reported to ChexSystems, you have options |
| bank accounts in the past, and find yourself in the | | | | Because locating a non ChexSystems bank is |
| ChexSystems database, you could find it extremely | | | | becoming 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 negative | | | | account for you. |
| ChexSystems report stays in the database, you will | | | | They will allow you to direct deposit funds you receive |
| probably be turned down by most Banks or Financial | | | | and 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 review | | | | money orders. The approval on these cards are 100% |
| your ChexSystems report before opening the account | | | | guaranteed. |
| it will be pretty hard to find. This is due to the fact that | | | | Some debit cards are very expensive, others offer |
| over 80% U.S. banks and credit unions belong to the | | | | few 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 can | | | | With a debit card, you can have all the benefits of a |
| expect the number of financial institutions using | | | | checking account, without being turned down. Also, you |
| ChexSystems to rise also.The best approach for you | | | | can 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 money | | | | yourself stuck with a chexSystems report on your |
| in the account to cover them. Find out from the bank | | | | record. |