If I Closed My ChexSystems Bank Account, How Long Is It Before I Can Open a New One?
ChexSystems is a reporting system that most banks use to report customers who owe them money. ChexSystems does not offer accounts directly to individuals, but if you have an account with a bank, your activity and use of that account are reported to ChexSystems. Some retailers also use ChexSystems to determine whether they will accept a check from an individual.
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Closing an Account
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You can close your account at any time with a bank as long as the account is in good standing. Being in good standings means you do not owe the bank money due to overdrawing the account or accumulating fees. If the account is closed while it is in good standing, you will not have a negative report at ChexSystems. If the bank closed your account because the account was overdrawn, you owe the bank money and you will be reported to ChexSystems.
Opening an Account
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You can open a bank account at a different bank at any time, if you are in good standing with ChexSystems. You can have checking accounts at more than one bank at the same time or more than one checking account at the same bank, if you are handling the accounts properly and not overdrawing the money. You can close your account at one bank and open an account at another bank the same day. Many people open a new account before closing an old account to allow any automatic payments or direct deposits that have not yet been recorded on the old account to go through. The old account is closed after it has been inactive for a month.
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Clearing Up a Bad Report
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Banks can refuse to open an account for you if you have a negative report at ChexSystems. Generally, banks will not allow you to open an account if you owe money to another bank. Contact your former bank and pay off the amount you owe. Ask for a receipt and a letter stating you have paid the amount you owe. This usually is sufficient for the bank to allow you to open an account. The bank may be willing to open only a savings account for you until you have established you can handle that account responsibly. After a set period, the bank may allow you to open a checking account.
Working Without a Checking Account
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If you have a bad ChexSystems report, you may have to work without a checking account for a while. If your employer only pays by direct deposit, you must find a bank that will allow you to open a savings account. You would have to withdraw money from that account to pay your bills. Otherwise, you may need to pay a check-cashing fee to cash your checks and bills. Many of your bills can be paid locally in person, and you can purchase money orders to pay the rest. Each month, try to pay some of the money you owe to your former bank so you can open an account in the near future.
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References
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