What to Do If You Can’t Open a Bank Account

Not being able to open a bank account can be very frustrating, especially when you can’t open a bank account when you need a way to get money, pay bills, put money in, or handle everyday costs. The good news is that if your application is rejected it doesn’t mean you can never open a bank account. In a lot of cases finding out why you were turned down and fixing the problem can help you get an account.

Why Can’t You Open a Bank Account?

Banks might say no if you can’t open a bank account for several reasons. One of the common is a bad banking history that appears in services like ChexSystems or Early Warning Services. Things like not paying overdrafts having balances checks that bounce, possible fraud or previous accounts that were closed without permission can stop you from opening an account.

Mistakes on the application can also cause issues. A name that is spelled wrong a Social Security number that’s incorrect an address that doesn’t match or other wrong details can stop a bank from confirming your identity. Problems with identity checking can sometimes be fixed by fixing the form or giving papers

Check Your ChexSystems Report

If your application was denied because of your banking start by getting your ChexSystems report. By law people usually get to ask for a report once every year. Looking at the report can help you find amounts, old information, or errors that could be stopping you if you can’t open a bank account.

Call the bank that said no and ask what the reason was. If you can’t open a bank account and a report was used, the bank should say which company did it. Keep copies of your talks. Check your report carefully for wrong details.

Fix Problems with Your Bank

If your report shows you owe money and you can’t open a bank account, talk to the bank and find out how to pay it. Paying the debt and getting a note that it is fixed can help your banking situation.

If the details are wrong fight the report with the company that gave it. Examples include debts that were already paid accounts listed as closed when they were not or other information that can’t be proved. ChexSystems usually only has a time to look into disputes, and anything that can’t be proven might have to be removed if you can’t open a bank account.

Try a Different Bank or a Second-Chance Checking Account

• A no from one bank doesn’t mean every bank will say no. If you can’t open a bank account, credit unions, local banks, and some online banks might have different rules for opening accounts.
• Second-chance checking accounts are another choice for people with banking issues. These accounts give banking help but they can come with rules like not being able to write many checks, fees or needing a minimum amount to start. Some might let you move to an account after showing you can handle the account well.
  What If You Still Can’t Get a Bank Account?
• A prepaid debit card can be a way to buy things take money out get some deposits and pay bills without a regular checking account. Fees can add up and these cards don’t usually help you build a regular banking history.
• Money orders are another way to pay bills, like rent. They let you pay without writing a check but buying a lot of them can cost more and they can be lost or stolen.
• A Way to Get Back, to Regular Banking.

[Bank Account Application Denied] –> [Find Out Why]

–> [Request Chex Systems or Other Consumer Report]

–> {Is the Information Accurate?}

–>|No| [Dispute Errors]

–>|Yes| [Resolve Outstanding Balances]

–> [Reapply or Try Another Bank]

–> {Approved?}

–>|Yes| I[Manage Account Responsibly]

–>|No| J[Consider Second-Chance Account]

–> [Work Toward a Standard Checking Account]

The best way is to learn why the application was turned down, look at your reports, fix mistakes, handle any money problems, and try another bank or a second-chance account if you can’t open a bank account. If you manage the account well, being denied now doesn’t have to stop you from building a banking life later.

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