How to Open a Checking Account With a ChexSystems Record
Opening a checking account while being reported to ChexSystems could prove to be problematic if you don't know where to look. ChexSystems is a network where banking institutions report information on mishandled accounts so other banks can determine the risk involved with opening an account for a particular individual. When you're on ChexSystems, you'll need to pursue opening a checking account with financial institutions that offer programs to help their customers get back on their feet again, regardless of what's reported on their ChexSystems or credit reports. These programs are typically called second chance, or fresh start programs. By opening one of these checking accounts, you will not only have the privileges associated with a checking account, you will also begin rebuilding your credit.
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Instructions
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Enter "fresh start checking" into your search engine and click to search. Three banks that come up are Liberty Savings Bank, Republic Bank and Central Bank.
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Read the terms and conditions from these banks and choose a bank you'd like to open an account with. A few things that you'll want to look for include: minimum balance requirements, monthly maintenance fees, initial minimum deposit requirements, free online banking, unlimited check writing, free telephone banking, free teller banking, overdraft protection options, online statements, whether the bank is FDIC-insured and free use of debit cards. Look for the options that are most important to you and apply with the bank that works best for your criteria. Let's apply with Liberty Savings Bank as an example.
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Click "Checking Account" in the "Apply For:" drop-down box.
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Click on "Open Your Checking Account Online Today" and review the application directions. A few things you'll need during the process include: U.S. Social Security number; valid form of identification, which can be a driver's license, state ID, military ID or passport; previous home address; and a credit or debit card or U.S. checking or savings account to fund your new account. Click "Continue."
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Select "Clean Slate Checking" from the list. You'll be given options for checking accounts, but the Clean Slate Checking account is the only one that will allow you to open an account while reported to ChexSystems. Click "Continue."
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Choose your account options and click "Continue." The options you have to choose from include: online bill pay, direct deposit, e-statements, free checks, online banking, telephone banking and combined statements. You can select as many of these options as you like.
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Read the "Electronic Records Disclosure & Agreement." This agreement includes the legal disclosures and agreements associated with opening an account. By confirming, you're agreeing to receipt of these disclosures and agreements and also agreeing to receiving and submitting the signature card and instructions electronically. Select "I confirm."
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Read the "Clean Slate Checking Disclosure." This disclosure details all the terms and conditions associated with this checking account. By agreeing, you're confirming that you agree with the terms of this account. Select "I agree" and click "Continue."
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Fill out the application. The required information includes: name, citizenship, Social Security number, date of birth, email address, employer, addresses, telephone numbers and ID information. You also need to set up your account password and answer whether you're subject to backup withholding with the IRS. Click "Continue."
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Review your information and click "Submit." Wait for approval.
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Choose an electronic funding method for your account and click "Continue."
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Enter the account information for your electronic funding and choose your initial deposit. The initial deposit must be a minimum of $100. Click "Continue," and then review your deposit information and click "Submit." Your account will now be opened.
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Tips & Warnings
Choose banks that are FDIC-insured.
Some banks are charging unreasonable fees to people with poor credit.
References
Resources
- Photo Credit Andrew Bret Wallis/Photodisc/Getty Images
