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Thursday, November 13, 2008

Non ChexSystems Banks

By Dan Moskel

If you are in chexsystems you are in a tough spot. This will prohibit you from opening a new checking account and damage your credit score.

However you do have an alternative to a checking account. You can get a prepaid credit card that will give you free direct deposit.

This can save you money by no longer paying expensive check cashing fees. In addition you can pay your bills with this card.

There is a feature called bill pay that will write real physical checks from your account to a business or individual. This will save you money because you will no longer need to purchase money orders.

As you can see this card works just like a checking account. Your card is accepted world wide and can be used over the phone or online.

Your card will also provide you with an opportunity to build a positive payment history. The prepaid account now visa gives you a free service called credit builder. This service will record the bills you pay with bill pay and report that information to a credit reporting agency. This can be used to show future lenders you are credit worthy.

What is ChexSystems?

ChexSystems is a way for banks to screen out potential problem customers. You can be placed into chexsystems if you had a bank account closed for reason.

Reasons are:

- Fraud

- Overdrawing your account and the bank is unable to recover payment

- Providing false information to open an account

Once you have this mark on your credit you will not be able to open a checking account. Also your credit will be damaged.

This mark stays on your credit for 5 years. Be aware that you may be able to open a new checking account but it will be closed once the bank runs your information and learns you are in chexsystems.

In sum a prepaid credit card is a great alternative to a checking account. It will provide you with everything a checking account would and more.

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