Can’t get a checking or savings account? You might be in the ChexSystems or Early Warning Services databases which are used by banks to determine whether to let you open a savings or checking account. These are two of the primary Bank Account Screening Consumer Reporting Agencies.
What is a Bank Account Screening Consumer Reporting Agency?
A bank account screening consumer reporting agency is used by banks to qualify potential new checking or savings accounts. If you have a report in an agency’s database, a bank may decide to deny your request to open a new account.
Two examples of these consumer reporting agencies are ChexSystems and Early Warning Services.
How do you get added to an agency’s database?
Generally, a report is filed by a bank or credit union when an account is closed due to an extended negative balance, fraudulent activity (such as writing bad checks), excessive overdrafts, or outstanding balances owed to the financial institution.
Once these reports are added to the reporting agencies’ databases, your report may stay in the database for several years unless the bank or credit union that filed the report requests to have it removed or the reporting agency is obliged to remove it.
You can request your ChexSystems Consumer Report here and you can request your Early Warning Services Report here.
An Alternative Solution: Prepaid Cards
If you find yourself with a report in a reporting agency’s database, it’s not the end of the world. A prepaid card is a great alternative to a traditional bank account because there’s no credit check needed to get one and there’s no minimum balance required.
Netspend prepaid cards1, specifically, offer:
- No credit check1 because this is not a credit card
- No fee direct deposit2
- FDIC-insured funds3
- Online bill pay4
- Optional Savings account5
- No minimum balance
And additional benefits that make it easy to manage your money without a traditional checking account.
Netspend prepaid cards are accepted everywhere Debit Mastercard® and Visa® debit cards are accepted; at stores, over the phone, and online. Learn more about Netspend prepaid cards.
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