Having one's own checking and savings account these days is pretty much a requirement to get things done in daily life. Without having these accounts, just getting your shopping done is much more of a hassle. The inconveniences of not having your own bank accounts include:
1. the need to carry your cash around with you wherever you go, which is risky or even dangerous, due to the strong chance that you could lose your cash or be robbed
2. the inability to write checks for utilities and other monthly bills, meaning you would have to make in-person trips to pay for these necessities
3. there is no way for you to access your cash via ATM machines when in an unfamiliar part of town or when out of town on business or personal travel
After the strong downside of not having your own bank account, millions of people are not able to open their own accounts. If you are asking yourself, "Why can not I open a checking or savings account?", Read on.
Some people whose savings or checking account applications have been rejected are under the mistaken belief that the rejection was due to their having a bad credit (or FICO) score. Surprisingly, your credit score has nothing to do with whether you are accepted for a new account.
Rather, the number one reason that people's new account applications are returned is due to something called Chex Systems. This is a database that banks use to report to other banks about people whom they have deemed to be a risk for opening a new account. Roughly 80-90% of banks refer to Chex Systems when considering new account applicants. If someone's name shows up there even once, the application is almost always restored on the spot. That is the reason why, if you have been rejected by one bank, you are likely to get rejected by most of the ones you try.
Luckily, there is a way around this problem. But before we explain how to get an account of your own, let's review the main reasons people get reported to Chex Systems in the first place:
1. Bank fraud of some sort was committed at one or more points in the past.
2. There were too many bank overdrafts which the bank covered, at least some of which were never paid back to the bank by the customer.
3. There were other irresponsible behaviors during the time the person was a bank customer.
The bottom line is: if your name has been reported to Chex Systems, there is not much you can do to get your name removed anytime soon.
Fortunately, there is hope for your getting a new account: a small percentage of banks do not use Chex Systems at all. That means that, if you apply for a new account at one of these banks and your name has been reported to Chex Systems in the past, this fact will not hurt your chances for getting accepted. This should come as great news to anyone who has been repeatedly rejected for a new account! Find a non-Chex Systems bank and you will likely get accepted right away.