A.Many banks and credit unions will use a system called the ChexSystems or Early Warning System. These services provide information to them about whether or not you have had a bank account closed on your behalf by another bank or credit union. This service helps them determine what amount of risk they might assume by allowing you to open a checking or savings account with them. If you had an account closed due to unpaid overdraft fees or a negative balance, that bank or credit union may report you to the Chex System. Depending on their policy on closed accounts, they may or not allow you to open a new account. Some banks or credit unions may have special accounts that they will offer you or you can ask about if you have had issues in the past.

If you are turned down for an account, we recommend ordering the ChexSystems Consumer Report or the Early Warning System, whichever they used in the decision. The good news is that this will only be listed for 5 years before it is removed. This will tell you why you were turned down for the account and you can also find additional useful information here.