A lot of people have dealt with financial emergencies and with the current state of the economy – many more people will likely have to deal with them. The key to dealing with a financial emergency is keeping your head and dealing with the situation in a calm and organized way. Below, you will find some important tips on what to do in a financial emergency.

How Bad Is the Damage?

The first thing you need to do is determine how bad the damage is. Is it a medical bill, the loss of a job or something else that is putting you in this financial crisis situation? Find out what the damage is and you will have a better idea of how to handle the situation. If it’s just a paycheck’s worth of damage, you can handle this more easily than a huge medical bill. However, no matter what it is – you CAN handle it.

Cut Out Unnecessary Spending

The next thing you need to do is cut out any unnecessary spending. This will allow you to save that money and use it toward getting yourself out of the financial emergency. This includes anything – from spending money on morning coffees to eating out three times a week. Rather than spending money in this fashion, simply make your coffees at home and cook at home. It’s so important to cut out this unnecessary spending so that you can get your finances back on track.

Find Ways of Creating Breathing Room

Another thing you can do in a financial emergency is find ways of creating breathing room. For instance, can you get an extension on your mortgage payment or vehicle note? You may have to pay a small fee in order to have this done, but it will create some breathing room and allow you to get your finances back on track. Most of the time, the payment you are able to skip will be tacked on to the end of the loan. While this is not necessarily desirable, it can really help in a financial crisis.an excellent book on the subject is

How To Generate Quick Cash In An Emergency!

Bring in More Income

Next, you need to try and bring in more income. Whether that means getting a second job for the time being, or doing some freelancing work – whatever it takes to bring in more money that can be used to help your financial situation. You might also consider having a huge garage sale and getting rid of the things you no longer need. You may provide childcare services in your home. There are many different ways in which you can bring in more income if you really think about it and get creative.

With these methods, you can stay calm and handle the financial emergency – keeping your finances and yourself from spiraling out of control. Good luck.

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A great Credit score can lower your payments and get you the good things in life with less hassle and just your good name… but… a low credit score can increase your payments, and make getting a loan an BIG ordeal. Maybe you need a new car, a computer, or maybe a house or student loan for you child, there are many reasons that we apply for credit.

There is a magical 3 digit number called a, "Credit Score" that can decide if you get these loans or at least what it will cost you. You may ask yourself how can a number affect my life so much. Basically the way it works is that credit reports keep track of your payment history, how much credit you have open, and your debt to credit ratio. These factors are calculated into your credit score. This score will affect how much you can pay for borrowing money, insurance and even in some cases whether you will get a certain job or not.

This score is used when you are applying for new credit. The lender will look at your score and based on that number will decide what your percentage rate on the loan will be. This number helps the lender determine the amount of risk they have with you, depending on this number.  To Find out what your number is click here They use this number because it is easier for them and less subjective for them to make their decision. They take your score and compare it with other consumers with similar profiles. They take this information and they can tell what the likelihood is they will get paid back, and if you will will pay on time. The credit score allows you to get credit instantly at department and other types of stores.

The most common method of scoring used by lenders is a FICO score. Its origins are associated with the Fair Isaac and Company, they are the company that created this method of scoring for lending institutions.

There are 3 major credit bureau agencies, TansUnion, Equifax, and Experian, they consulted with Fair Issac to create this system. Sometimes a lender may use their own type of method for scoring your credit history. They can use this to determine what your income is and how long you have been employed at your job. Free credit report click here

If you’re looking for a new bank account due to a chexsystems problem be sure to check out chexsystems blog

Technorati Tags: credit, credit score, Credit Scores

What to Do if You’re Listed in ChexSystems

Banks and credit unions use Chexsystems when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. Here’s how to beat them at their own game.

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start. I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir. I was nervous.

The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety. I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said… "No one can make you feel inferior without your consent."

I love that quote.

So I walked into the bank branch with the attitude, "Everyone knows I filed bankruptcyso what?" I asked to be directed to the person who could open a new checking account for me. The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems. Then everything changed…

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

That was that. I walked out of the bank without a checking account because of a company called ChexSystems.

What is ChexSystems?

ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank. ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.

I’ll focus on ChexSystems since they’re the largest.

Are You On The ChexSystems Blacklist?
This Bank Will Open An Account For you Today…Click Here to get started
There are several actions that can get you on ChexSystems’ blacklist…

- Fraudulent handling of a checking account
- Bouncing a check resulting in non-sufficient funds (NSF)
- Overdrafting your account while using your ATM or debit card
- Having your account "closed for cause"

One of the most common ways to get listed in ChexSystems happens when you move or change banks. Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.

The best way to avoid this problem is

to leave your old account open until you are sure all your transactions have cleared. Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid. Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.

I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be. This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.

How Do You Know If You’re Listed In ChexSystems?

You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks. You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store. When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.

If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank. If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.

The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA). This means you’re entitled to one free copy of your ChexSystems report every year.

What I Figured Out By Accident

Click Here to open a new bank account right now!
After my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup. My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir. As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems.

So I took a chance. I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me. I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.

I then spoke up and asked, "But what if I’m listed with ChexSystems?" His answer shocked me. "We don’t use CheckSystems. I’d be happy to open an account for you." And so he did. I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!  What I hope you glean from this is that not all banks or credit unions use ChexSystems. It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.

How To Get a Checking Account If You’re Listed In ChexSystems

The best way is to find a bank that doesn’t use ChexSystems to verify new accounts.

Here’s how to go about it…

1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks.
2. Call and ask to speak to the branch manager.
3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?)
4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?

If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next… "…Darn it. I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?"

If they say, "No," ask them…

"Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?" Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.

A New Trend Developing

I’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services. Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.

Banks That Really Care

Some banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of "second chance" or "fresh start" program.

A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months). If you really need a checking account, these programs can be a lifesaver.

There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.

The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.

So don’t be afraid to ask. Remember what Eleanor Roosevelt said…
"No one can make you feel inferior without your consent."

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

By Stephen Snyder Published: 5/7/2007

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‘…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…’My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start.I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir. I was nervous.

The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety.I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said…’No one can make you feel inferior without your consent. ‘I love that quote.So I walked into the bank branch with the attitude, ‘Everyone knows I filed bankruptcyso what?’

I asked to be directed to the person who could open a new checking account for me.The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems.Then everything changed…’…I’m sorry, my bank cannot help you. You’re listed in ChexSystems… ‘That was that.I walked out of the bank without a checking account because of a company called ChexSystems. What is ChexSystems?ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks.

If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank.ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.I’ll focus on ChexSystems since they’re the largest. Are You On The ChexSystems Blacklist?There are several actions that can get you on ChexSystems’ blacklist…- Fraudulent handling of a checking account- Bouncing a check resulting in non-sufficient funds (NSF)- Overdrafting your account while using your ATM or debit card- Having your account ‘closed for cause’ One of the most common ways to get listed in ChexSystems happens when you move or change banks. Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.

The best way to avoid this problem is to leave your old account open until you are sure all your transactions have cleared. Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid.Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be.

This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.How Do You Know If You’re Listed In ChexSystems?You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks.You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store.

When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank. If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA). This means you’re entitled to one free copy of your ChexSystems report every year.What I Figured Out By AccidentAfter my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup.My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir.

As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems. So I took a chance.I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me.I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.I then spoke up and asked, ‘But what if I’m listed with ChexSystems?’His answer shocked me.’We don’t use CheckSystems. I’d be happy to open an account for you.’And so he did.I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!What I hope you glean from this is that not all banks or credit unions use ChexSystems. It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.

How To Get a Checking Account If You’re Listed In ChexSystems

The best way is to find a bank that doesn’t use ChexSystems to verify new accounts.Here’s how to go about it… 1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks. 2. Call and ask to speak to the branch manager. 3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?) 4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next…’…Darn it. I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?’If they say, ‘No,’ ask them…’Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?

‘Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.A New Trend DevelopingI’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services. Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.Banks That Really CareSome banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of ’second chance’ or ‘fresh start’ program.

A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months). If you really need a checking account, these programs can be a lifesaver.There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.So don’t be afraid to ask. Remember what Eleanor Roosevelt said…’No one can make you feel inferior without your consent.’

By: Stephen Snyder

Article Directory: http://www.articledashboard.com

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

If you would like to open a checking account today here’s a bank that will help you…click here for more information

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Ins And Outs Of The Chexsytems

The Chexsystems, the name strikes fear into the hearts of anyone who has had to deal with them (merchants excluded). Many of us at one time or another has bounced a check. For the majority of people who have had a check returned for insufficient funds, it is usually an oversight or miscalculation. So, in case you haven’t guessed the Chexsystems is a reporting system that tells merchants who has bounced a check.

What does this mean to you, a check writer? If you have ever bounced a check, and it got reported to the Chexsystems, there is a good chance that many merchants will not accept your check anymore. Take this situation for example: you wrote a check for $25.00 at the grocery store. Your husband made a $100.00 purchase with his debit card on the same account. He forgot to tell you. Payday is 4 days away. The $100.00 payment clears faster, because it was an electronic payment. On day 3 the check hits the bank for clearance and there is not enough money to cover it. So, your check bounces. The grocery store does not call you; instead they turn it over to an agency who immediately reports it to chexsystem. You pay the check and all fees. Nobody tells this to Chexsystems. You go to buy something at another store — sorry, we can’t accept your check! Wow, this sounds awful. It happens all the time though. Unlike credit reporting agencies, Chexsystems does not require merchants to update their information periodically. You can have a very old report, come back to haunt you over and over again, even if it’s been paid. So what do you do to avoid this?

In order to avoid problems with Chexsystems, you should avoid bouncing checks. Be diligent about balancing your checkbook and make sure you don’t ‘play the float’ (the time it takes for a check to clear). However, if a mishap occurs, here are the steps you need to keep it all under control. Pay the merchant, and all the fees. Do this as quickly as you can. Get a receipt and hold onto it. Many merchants will give you a grace period before they report you. Tell the merchant that they need to report the item as paid in the Chexsystems. If the merchant does this, your information will be purged from the Chexsystems in about 5 to 10 days. After 10 days, contact Chexsystems and be sure that they do not have anything reported on you. If they have incorrect unpaid information, tell them that you have paid it. They will usually verify it with the merchant. If they cannot, get your receipt that shows the check being made good. Copy it and send to Chexsystems by either mail or fax. This should end your problem.

Having a system like this is not meant to punish honest individuals. It was designed to alert merchants and banks to those who are committing check fraud. There is a huge different between the person listed in our example above and someone who has 25 outstanding checks on closed accounts totaling thousands of dollars in 5 different states. Unfortunately, the processing systems at local stores do not make this determination. They see a record and it’s a no-accept policy. Learning ahead of the ins and outs of Chexsystems helps you to understand how important it is to never bounce checks. Now you will know what to do if you ever have a problem with the Chexsystems.

By: ftprod

Article Directory: http://www.articledashboard.com

This article is courtesy of www.badcreditmakeover.com Your up to date online source for bad credit repair resources and guaranteed approvals.

Technorati Tags: chexsystems checking account, how to avoid chexsystems, keywords, no chexx, non chexsystems, prepaid debit cards

When you’ve been reported to chexsystems it will seem impossible to open a checking account, and to make matters worse your credit score will be damaged.

But there are some great options to a traditional checking account. Options Like a direct deposit prepaid credit card.
These easy to get bank accounts are real money and time savers because they save the cost of expensive check cashing fees.
 

Pay Bills With Out Postage Or the Cost Of Money Orders.

  A feature called bill pay allows you to either write real physical checks from your account to a business or individual or just log in to your account and pay bills online. This saves you money because you will no longer need to purchase money orders, buy stamps or drive all over town to pay bills

Cards like the Account Now work just like a checking account, and your visa or master card card is accepted over the phone and online anywhere visa or MC is taken.

Additionally with your new  prepaid account you can enroll in other services like the credit builder program. This service will record the payments you make using bill pay and report that information to a credit reporting agency. This can be used to show repair and even build up your credit score.

You can open an account of your own today even with a chexsystems report or bad credit.

Click Here To Open Your New Pre Paid Account Now

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Opening A Checking Account While On The Chexsystems

The ChexSystems provides deposit account verification services to its financial institution members to help them to identify account applicants that may have a history of account mishandling. The service sounds useful, and it is for banks and financial institutions. It helps them be alert cases of fraud and other abuses. Those who routinely and intentionally write bad checks should have their criminal activities recorded in ChexSystems. However, not all negative activities are cases of fraud or intentional misuse. Many consumers have written at least one check that has bounced and if you had a checking account closed in the negative balance and did not pay the negative balance in time, the bank will have reported the consumer to the ChexSystems.

Every report submitted to the ChexSystems remains on the files for five years, unless the bank or credit union that filed the report with them has it removed or the ChexSystems becomes obligated to remove the file under law. However, if a collection amount is reported is paid, they is obligated to mark the account as being paid.

If you are reported to the ChexSystems make sure not to close any other checking accounts you may have. Pay all of the overdraft fees as soon as possible. Make good on the personal check you have wrote and are out. Once you have paid the overdraft fees and satisfied everyone that had received a bounced check, then make sure to have a explanation of the matter inserted into your ChexSystems file.

Just because you are on the ChexSystems, there are still alternatives to getting a checking account from a bank. Sometimes this can be overlooked by the bank officer so you may be able to open a new account. There are also many banks On-Line that offer second chance checking accounts to people who has been reported to the ChexSystems.

Open A New Checking Account In 10 Minutes …Click Here

By: twv706

Article Directory: http://www.articledashboard.com

Thomas Vargo writes several articles for Consumerbadcreditguide.com to help people that have no or bad credit build a credit history. If you want more information on how to obtain credit with bad or no credit for different purposes, visit his consumer guide on bad credit.

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What to Do if You’re Listed in ChexSystems

Banks and credit unions use Chexsystems when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. Here’s how to beat them at their own game.

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

My wife and I just moved from South Bend, Indiana to Indianapolis. We needed a checking account. We both wanted a fresh start after bankruptcy, and opening a new checking account with a new bank seemed like a good place to start.

I chose to go with a national bank and found a branch on Fall Creek Road in Indianapolis near Geist Reservoir. I was nervous.

The thing about filing bankruptcy that most people have a hard time understanding (unless they’ve gone through it themselves) is the feeling of inferiority. Each new credit application can cause anxiety.

I’ll share a quote that pulled me through this stressful time in my life. It’s from Eleanor Roosevelt. She said…

"No one can make you feel inferior without your consent."

I love that quote.

So I walked into the bank branch with the attitude, "Everyone knows I filed bankruptcyso what?" I asked to be directed to the person who could open a new checking account for me.

The lady at the desk who began to talk to me about opening an account was really nice…until she found my name in ChexSystems.

Then everything changed…

"…I’m sorry, my bank cannot help you. You’re listed in ChexSystems…"

That was that.

I walked out of the bank without a checking account because of a company called ChexSystems.

What is ChexSystems?

ChexSystems is a checking account verification company based in Woodbury, Minnesota. Banks and credit unions use them when people apply to open a checking account. It’s essentially a consumer reporting agency designed to check if people have a history of writing bad checks. If you’re listed in ChexSystems you’re usually not allowed to open a checking account with that bank.

ChexSystems is the largest player in the check verification industry. However, there are other companies that provide similar services, such as TeleCheck and Decision Power Insight from Equifaxreg;.

I’ll focus on ChexSystems since they’re the largest.

Are You On The ChexSystems Blacklist?

There are several actions that can get you on ChexSystems’ blacklist…

– Fraudulent handling of a checking account
– Bouncing a check resulting in non-sufficient funds (NSF)
– Overdrafting your account while using your ATM or debit card
– Having your account "closed for cause"

One of the most common ways to get listed in ChexSystems happens when you move or change banks. Because check and debit card charges don’t show up on your account as soon as you make them, you can get hit with NSF charges after you thought you closed your old bank account.

The best way to avoid this problem is to leave your old account open until you are sure all your transactions have cleared.

Once you’re listed in a check verification service such as ChexSystemsit’s best to just pay what’s due. Also, make sure you request a letter on that bank’s letterhead stating that all debts have been paid.

Now, one would think that if you included an unpaid check in your bankruptcy petition that your debt would be erasedI personally didn’t find that to be the case.

I learned that entries remain on your ChexSystems report (even if they’re paid off) for five years. So if you think you’re safe because you paid the check or included it in your bankruptcy, you may not be.

This was my ChexSystems experience. Yours may be different. If you have a ChexSystems story to share go here to tell me about it. I’ll compile all the information and share it with everyone in a future issue.

How Do You Know If You’re Listed In ChexSystems?

You’ll either be unable to open a new bank checking account or you’ll have a difficult time getting stores to accept your checks.

You see, the same corporation that owns ChexSystems also owns SCAN, the company that verifies checks at places such as Wal-Mart or your local grocery store.

When you write a check at a store, and they put it through that little machine at the register, they’re looking to see if you’re listed in either SCAN’s or ChexSystems’ databases. If you are, they usually won’t accept your check.

If they do accept your check, then ChexSystems has guaranteed that it will be honored by your bank. If it bounces like a rubber ball, then ChexSystems will pay the merchant the amount of the check out of their pocket…then you not only have to pay your bank’s NSF fee, but ChexSystems’ as well…which can get expensive.

The best way to know if you’re in ChexSystems is to review your ChexSystems report. Since they’re a consumer reporting agency, ChexSystems has to follow the Fair Credit Reporting Act (FCRA) and the new Fair and Accurate Credit Transactions Act (FACTA). This means you’re entitled to one free copy of your ChexSystems report every year.

What I Figured Out By Accident

After my unexpected rejection from the bank on Fall Creek Road, I needed a few days to regroup.

My wife and I shared a car at the time, and she had a job interview at a RE/MAX real estate office near Geist Reservoir.

As I waited for her, I noticed three new banks just a stone’s throw from each other. Literally, one on each corner of the road. What were they thinking? None of the branches looked busy. My guess was they were stumbling over each other to win new bank customers…even ones listed in ChexSystems.

So I took a chance.

I locked the car, hoping Michele wouldn’t return right away. Then I picked the bank that looked the newest. I went in and asked to be directed to the person who could open a new checking account for me.

I sat down in the branch manager’s office. And as he was going through the routine pleasantries, I noticed him reaching in his drawer for a new starter checking account kit.

I then spoke up and asked, "But what if I’m listed with ChexSystems?"

His answer shocked me.

"We don’t use CheckSystems. I’d be happy to open an account for you."

And so he did.

I returned to the car, excited to share my discovery with Michele. We had a checking account from a bank!

What I hope you glean from this is that not all banks or credit unions use ChexSystems. It may seem like it in some cities, but they absolutely are not used by 100% of financial institutions.

How To Get a Checking Account If You’re Listed In ChexSystems

The best way is to find a bank that doesn’t use ChexSystems to verify new accounts.

Here’s how to go about it…

1. Start by making a list of all the bank branches in your area. You’ll do better if you stick with the smaller, local banks and avoid the big banks.
2. Call and ask to speak to the branch manager.
3. Inquire about their different checking account programs. (How much money do you need to start an account, how long does it take, can you do it online, what check number will they start you out at, etc.?)
4. Then ask how they verify new accounts. Do they review your credit report? If so, which credit report, and will the credit inquiry lower your credit scores? (Of course, you know the answer to this question is yesbut let’s see how many tell you the truth.) Or, do they use a check verification service? If so, which one?

If the branch manager tells you they don’t use ChexSystemsyou’ve got a winner! Be sure to write down the person’s name and make arrangements to stop in and open an account. If the branch manager tells you they use ChexSystems…here’s what to say next…

"…Darn it. I’m listed with ChexSystems and they’re a bear to deal with to get something resolved. Is there anything I can do to get an account with you?"

If they say, "No," ask them…

"Do you happen to know of a local bank that doesn’t use ChexSystems or a program that can help me open a new bank account?"

Sometimes you can speed up your search by asking for help. It will take you only a few seconds to ask, but the right answer may save you hours of research.

A New Trend Developing

I’ve noticed more and more banks are reviewing credit reports in lieu of using check verification services. Sometimes they even do both! I wouldn’t open an account with a bank that does thismainly because their credit inquiry will lower my credit scores. So keep looking.

Banks That Really Care

Some banks are willing to give even bankrupt people a break. If you’re searching for a new bank and you think you may have trouble getting a checking account, ask if they have some kind of "second chance" or "fresh start" program.

A lot of banks have probationary programs that offer limited services for a set amount of time (usually six months). If you really need a checking account, these programs can be a lifesaver.

There are also two specific services that a lot of banks and credit unions are becoming affiliated with. Basically, these programs allow you to take a course on how to manage a checking account. And when you complete the course, you’ll be given a certificate to open a bank checking account with a participating bank or credit union.

The two programs are called Get Checking and InBalance. Get Checking is geared more toward banks, while InBalance is more for credit unions.

So don’t be afraid to ask. Remember what Eleanor Roosevelt said…

"No one can make you feel inferior without your consent."

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a loan after bankruptcy with a fair interest rate.

By Stephen Snyder Published: 5/7/2007

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