Over the years I have always suggested always having more than one bank and never having all of your money in one place. This is especially true when using a bank or credit union that uses chexsystems. There have been occasions that banks will close account that are in perfectly good standing due to a chexsystems record.
Do not believe that just because a bank allows you to open an account that they will not later close it. Over the years I have had too many people tell me that they were approved by the local branch manager just to have the account closed later.
A recent story was one where a gentleman went into a bank to open an account and told the manager that he used to have an account there that was closed and reported to chexsystems. The manager looked his information up and said he should never have been reported in the first place and she was glad to open a new account for him. He asked her is there was any way possible to remove him from the chexsystems database and she was more than happy to find out if it was possible.
Later that week he got a call from the branch manager. She stated that she was told that there was no way that they would be able to remove him from chexsystems. He was thankful to her for trying and was very happy that he was at least able to get a new account.
A few weeks after that he was trying to use him debit card and was unable to. He called the bank and was told that they froze the account and set to close it after 30 days. He went back into the bank and talked to the manager that gave him the account and she then indicated to him that there was nothing that she could do and it was out of her hands. It was determined that the banks loss prevention had decided that he was " a risk" and the account should not have been opened.
Another story
Well after being elated that I had a local account which I opened up last Wednesday and being reassured that everything was all good on the account and that I could switch over my direct deposit. I switched over my UNEMPLOYMENT deposit which would have gone in this morning, however, after doing a sweep on the account they closed it in the back office yesterday. When I was told why it said they have strict requirements for the account of which I did not meet at this time and when I said that's great you can tell that to my kids who won't have a thanksgiving because you guys are sitting on 1,116 dollars of mine from Unemployment he said "You have a great Thanksgiving sir."
This is why I suggest never to use one bank if you have had any problem at all with a bank in the past.
I was able to get an account at a bank that uses Chexsystems. I am not sure how I was approved!!
If you find yourself saying the above words, sometimes using a bank that utilizes chexsystems may be the best solution or even the only solution for many. There are 2 things I can suggest in these situations.
1. Again never have all your money in one bank
2. We have found that if you set up a direct deposit, there is a better chance the account will remain opened. I would allow an account at least 2 weeks before setting up direct deposit, just to be assured that it is not being closed right away. Setting up direct deposit gives the bank a sense of security that you are going to take care of the account. We have found that direct deposit can make the difference when a bank or credit union is determining to close an account or not especially in cases where a person is approved and a chexsystems report is ran or discovered later.
Once you have opened an account, a great second chance (no-chexsystems) account to have is the Electric Orange account. They do not use chexsystems at all. I personally have both a savings and checking at ING Direct and love them!
