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That said, our standard is that we will never accept advertising from a product which we wouldn't use ourselves. Banks usually get information about this history from a company called ChexSystems , which maintains a file of information on your checking account history similar to your credit report. ChexSystems, which is governed by the Fair Credit Reporting Act just like larger credit reporting bureaus, simply record negative banking account information.
Items like non-sufficient funds overdrafts and unpaid bank account liens will stay on your report for up to five years. But you may also be denied because of a history of frequent overdrafts. Just ask the bank who has denied you exactly what the issue is. Your next step is likely to check out your ChexSystems report, which you can access at ConsumerDebit. Like your credit reports, you can get one free copy of your ChexSystems report every twelve months.
The report will show which bank or banks have reported you and why. If the report is wrong, you can talk to the reporting bank first. If they refuse to deal with the matter, dispute the information with ChexSystems, who is required by law to investigate the claim. The fact of the matter is that it can take months — or even years — to clean up your ChexSystems report.
Many prepaid cards function very similarly to checking accounts — even allowing for automatic paycheck deposits. Not only are the fees low, but it comes with many of the same benefits you get with an American Express card. Secured credit cards A secured credit card is a good way to build your credit, which may help you get a checking account in the future.
With these cards, you pay a deposit up front. The deposit is held by the card issuer in case of default. Sometimes these deposits also earn interest like a checking account.
Secured credit cards generally have a very low credit limit and a high interest rate. One thing to note: Alternative checking accounts As companies seek to reach out to unbanked or underbanked Americans, more are coming up with tempting checking account alternatives. This card is very similar to a checking account.
It lets you may direct deposit, use online bill pay, and even write checks. Bluebird is also unique in that it lets you set up family sub-accounts, so you can give your teenager or another family member limited access to your Bluebird funds. Chime offers a terrific online savings and checking account geared toward savers. Using the Chime checkbook feature, you can send checks to anyone you wish; fee free.
These accounts include most of the same features as regular checking accounts — checks, ATM access, online bill pay, debit cards, money transfers, and direct deposit. Others will require that any outstanding balances from old banks reported in your ChexSystems file be paid off before you can get a second chance account.
A second chance checking account can be a good way to establish a better bank account history, and can often lead you into a lower-fee, traditional checking account within a few months to a year. You'll also get instant access to my interview of a husband and father who retired at the ripe old age of. What others are saying: I'm at Day 26 in your 31 day money challenge podcast.
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