If you’ve ever written a bad check, whether intentionally or unintentionally, then you might be in what is called as Chexhell. This is the situation where you are unable to open a new checking account in any bank under ChexSystems Inc., due to bad checks and mishandled savings accounts. Since most banks are under the ChexSystems network, what happens is that your name is written on the system for five years. What this means is that you cannot open a new account for that span of time. On a personal note, it is also bad for your reputation. So what can you do? Do you just wait out the five years? Do you just sit in despair? There are other options on getting around the system and having a second chance in banking. Here are the steps on what you should do to get around the ChexSystems file on you.
- Pay it off. You can always pay off your debt to the bank which you owe it to. Upon completion of payment, have them send you a letter that states that you are debt-free. You can take that to a new bank and open an account there.
- Make a request. Having paid your debt, you can request for an overturn on your file in ChexSystems. Request for your report and then fill out the dispute form in it and submit it back to them. This does not happen quite often but you can try anyway.
- Try and try. There is always an instance that a bank manager can override your file on ChexSystems and allow you to open an account. However, this practice is not looked upon with favor and is not recommended for the most part.
- Be humble. Even if you have made good with your previous debt, try to maintain humility. Explain your case to the bank manager and make sure to have a sincere tone in your voice. Coming in all arrogant will not help you at all.
- Other banks. Even if a lot of banks are under ChexSystems, there will always be some that are not. There you can open a new checking account without worry. You can check online for banks that do not use the same system like the others that have declined you. On the other hand, you can always open a savings account. Most banks will allow you to open one regardless of your ChexSystems file.
Five years is a little too harsh for a lot of people. Some even find it
excessive as a practice. If you find yourself given a second chance in
banking, you have to maintain a positive account. Not a lot of people
are given second chances, so make it count. Even if banks compete for
your account, they will not hesitate to turn you down if they believe
that you are fraudulent or high-risk. Maintain a healthy bank statement
by making regular deposits and only modest withdrawals for the meantime.
This way, you can rebuild your credit history and start anew. Good