I have had my NetSpend® Prepaid Debit Card for almost 3 years now and I love it! I get paid two days faster than my colleagues and they are always jealous! NetSpend® allows me the freedom to live my life like a normal person and no one knows that I am not eligible for a checking account. (Except now you do.) But I don’t mind sharing that secret with you because there are many reasons behind why people are not able to qualify for checking accounts.
Why Have You Been Denied A Checking Account?
Outstanding debt with a bank
One reason people are denied checking accounts is because of outstanding debt with banking institutions. Outstanding debt is the unpaid portion of a debt that may include interest accrued on the balance. Many times people have circumstances that cause them to accrue outstanding debt. When late fees and overdraft fees become too overwhelming, sometimes the only option a person has is to walk away from the account and allow it to go to collections.
History of frequent overdrafts
Another reason for denial could be a history of frequent overdrafts. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In turn, the bank attaches fees to the account for having to cover that delinquency. Some banks will allow customers to withdraw funds from their account despite insufficient availability of funds. Sometimes deposits will have a temporary hold in which the account holder is not aware of that could also lead to overdraft fees.
What Can You Do About It?
Get Your ChexSystems® Report
Everyone is entitled to know what is on their ChexSystems® Report. A copy of this report may be requested by going to the ChexSystems® Website. A free report is available for request every year. If there is information on your report that you need to dispute, you can do that by clicking here. A must know is that once you are on this negative list, it takes 5 years to get off that list. Staying on the negative list is what makes it so hard to open new checking or savings accounts.
Anyone who has debt with a banking institution and is able to pay it should certainly do so. Paying off your debt clears that delinquency from your report. It also allows you to once again apply for a checking or savings account.