If you have been placed into chexsystems you are in a difficult spot. This will prevent you from opening a bank account and really hurt your credit score.

However you do have an alternative you can get a prepaid credit card that will give you free direct deposit. This will prevent you from spending your money on check cashing fees and your card can be used to pay your bills.

There is a free feature called bill pay that will enable you to pay your bills by writing a check from your account. This will save you money on purchasing money orders.

Additionally with the prepaid account now visa you can enroll in another free service called credit builder. This service will record the payments you make using bill pay and report that information to a credit reporting agency. This can be used to show future credit worthiness.

As you can see this card works just like a checking account. Your card is accepted world wide and can be used over the phone or online.

What is ChexSystems?

This is a group of financial institutions and they share information to screen out potentially problem customers. You will be put in it if you have had an account closed for reason.

Reasons are:

• Fraud
• Overdrawing your account and the bank is unable to recover payment
• Opening an account with false information

Once you have this mark on your credit you will not be able to open a bank account and your credit will be damaged. This mark stays on your credit for 5 years.

Be aware that you may be able to open a new account but it will be closed once the bank runs your information and learns you are in the system.

In sum a prepaid credit card is a great alternative. It will provide you with everything a bank account would and more.