Using Banks and Bank Accounts/checking account


QUESTION: Hello I'm currently a college student and I am trying to open a checking account but I keep getting denied. The reason they state is because of my bad credit. My credit rating is in the mid 500's. I know my credit is bad and I admit I have made mistakes in the past, but I'm trying to move forward and get a checking account so I can pay my bills, but so far I haven't been successful. I tried joining online checking accounts where they offer no min balance and 100 percent free checking but I got turned down from that as well. I really don't know what to do or how to get a checking account. I would greatly appreciate your help, thank you for your time.

ANSWER: Hi Randy,

Usually banks do not run credit reports when opening a new relationship for a customer, certain credit unions sometimes do.

I am not sure you are getting rejected for bad credit history, more often than not this is due to Chexsystems reporting, have you previously owed money to a bank that they did not collect on?

---------- FOLLOW-UP ----------

QUESTION: Yes for overdraft fees, I'm trying to pay them off but I have no bank accounts and I don't know how to pay them off, since they say I need a checking account to pay them off.


You will not be able to establish any accounts with a bank until you get rid of the chexsystem reporting.

You need to walk in to the Bank you owe money too and pay them directly, they will send it to their collection department (request a receipt of payment) if they are very nice they might even give you a letter.  After you have paid all fees that you owe, the bank should send a clearence to Chexsystems that you no longer owe them money.

Here is where the issue lies, banks aren't up to date with their reporting and it can sometimes take years for them to clear you off, you need to directly contact Chexsystems yourself to speed up the process:

Mail: Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125

Fax: 602.659.2197
Telephone: 800.428.9623

You have to let them know you have paid off ABC Bank and have proof, they will put in a request to take you off, even than it can take a good month.  Believe it or not many times its harder to clear your banking history than your credit history.

Good Luck

Using Banks and Bank Accounts

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Anything pertaining to Commercial or Retail Banking. Including, Interest rates, Lending, as well as Prime Rate questions. Also can help with online banking questions including all regulations.


Retail and Commercial banking since 2002. Currently employed as an Assistant Vice President at a Commercial Bank.

Chamber Of Commerce, National Notary Association

Extensive credit knowledge.

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