Life After Chex Systems: How to Open a New Checking Account

If you've had the misfortune of having a checking account closed due to being overdrawn for an extended period of time, then you probably know how difficult it can be to open future accounts at other financial institutions. Banks and credit unions use a special consumer reporting agency, Chex Systems, in order to protect themselves and other financial institutions from potential fraudulent activity. Anything dealing with bounced checks and overdrawn accounts that have gone unpaid for a number of days are reported to this agency.

Most people who have been reported to Chex Systems are honest, hardworking individuals, like yourself, and not the criminal that they are perceived to be. No one is perfect and anyone can bounce an occasional check if they forget to account for it or a spouse spends money without informing his or her other half. When a check does happen to bounce, most people are able to quickly pay back the bank in a reasonable amount of time. Regrettably, a few people are unable to pay back the full amount in the allotted time, due to lack of finances, and therefore, the bank closes the account.

Even though it may seem like you've been blacklisted and can never open another bank account, this isn't true. Your name will stay in Chex Systems for five years and then you'll be able to open a checking account at any bank you wish. This may not seem like a good thing, but fortunately, you don't have to wait the full five years to open a new checking account-in fact, you can open one immediately.