(Daily360.com) – In the United States, banks can legally refuse to open a checking account in your name, especially if they believe you would put them at risk. Common red flags for financial institutions typically include owing another bank money, applying for too many accounts in a short period, bouncing checks, or being suspected of fraud. If you struggle to get approved, take heart — there are ways to overcome this hurdle.
Alternative Banking: What to Do If You’ve Been Denied a Checking Account https://t.co/BsB79WuyFB pic.twitter.com/M5fk09NwQn
— DataMangler (@DataMunger1) April 17, 2020
First, access your ChexSystem report. It’s similar to a credit check but with the “debit bureau” instead. This report will show your banking history, which might help to highlight reasons why a branch would deny you the right to open an account. Review the report and then dispute any negative marks you see that are wrong.
No mistakes? It’s time to start working on correcting any glaring issues, such as unpaid overdraft debts, to restore your good name. Once you’ve done that, you can ask the bank to reconsider your application.
Were you rejected again? Apply for a second-chance account instead. Some financial institutions offer special products that don’t require a ChexSystem check. These options give you the opportunity to rebuild your profile and get on the road to financial stability. While they are often heavily limited in scope, you can gain more privileges once you’ve proven you’re trustworthy.
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