Being denied a bank account is more common than you might think – and it can happen for a number of reasons. Here’s what should be done if you or a loved one is having trouble opening a bank account.
Your ”banking report” determines whether you can open a bank account. If you’re in good standing with current or past banks, then you should be fine.
What’s on your “banking report?” You’re entitled to a free copy of it every year, so ask the bank where they got yours – probably ChexSystems or Telecheck – then reach out to THEM to see what’s on it!
If you were surprised by the denial, there may be ERRORS on your report! Otherwise, look at the negative marks and start addressing them immediately. Sometimes a payment plan can help you pay down an overdrawn account. But other times, that’s not enough.
“Second-chance” banking accounts offer consumers with a rocky bank history the opportunity to open an account. Most major banks, as well as many online banks, offer these – they usually have some restrictions and guidelines, but can help you get back on track.
There are many challenges that come with not having a bank account. If you’ve been rejected, finding out why and then resolving those issues, or pursuing a “second-chance” account, could be how you get back on track and on the path toward financial freedom!