Bank Accounts for Individuals
with Poor Credit
Individuals with poor credit or have filed bankruptcy or been thru the bankruptcy process find it difficult to open and maintain a bank account. If you have bad credit, often banks will decline your application to open a new account, especially if you have filed for bankruptcy in the past seven years. Fortunately, there are Financial Institutions that offer "Second Chance Checking Accounts". Often banks check a company called ChexSystems to determine people who have a bad track record with one or more banks to review your banking history. If you have a negative listing in the ChexSystems database, it can be very difficult, if not impossible, to open a new checking account, savings account, or other type of account, usually for five years or more.
How you get listed on Chexsystems depends on your history with banks for "Insufficient Funds" notices or other negative account activity. Also, banks monitor how many inquiries have been made about your history of your Chexsystems record. If Chexsystems has several inquiries you may not be able to open a new account, so before you apply to open a new account, make sure you know the banks rules and ensure your ability to get the account before you sign your name. Your information will be maintained by Chexsystems database for 5 years, unless they have a legitimate reason to remove your record (ie divorse, bankruptcy, etc.)
If you contact ChexSystems and let them know that you have been denied an account in the past 60 days, they will send you your personal report at no charge. It is a good idea to get a copy of your report, if you feel like your a risk at being denied the ability to open up an account, before you apply for an account. You can get a copy of your report directly from ChexSystems normally at a cost of $8.00. You will need to supply ChexSystems with your name, address, and Social Security Number (SSN) to apply for a copy of your information. They do have a website that you can access your report online at: http://www.chexhelp.com/
You can also request a copy of your report in by writing directly to ChexSystems at the following address:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
For further instructions, call ChexSystems toll-free: (800) 428-9623 or fax at 602-659-2197
There are services available that will help you monitor and manage your credit, and help you use the Fair Credit Reporting Act to manage the information available to ChexSystems and other financial institutions.
In order to open a checking, savings, or other account immediately, there are many Non-ChexSystem banks nationwide that are FDIC insured that will open an account for you immediately, most of the time online, and allow you to get a Visa or MasterCard debit or ATM card immediately. 
