Many of our clients find themselves struggling to open a bank account after they’ve fallen on hard times. Aside from clearing up your basic consumer credit profile (equifax, experian & transunion) you now have to worry about ChexSystems. ChexSytems is different from the BIG THREE in regards to what is actually being reported. 80% of the banking industry uses this system to report overdrafts, bounced checks and money owed from over withdrawn checking accounts. Chexsystems is starting to draw quite a bit of critism with consumers having very little direction as to how to get themselves removed from this “black list.” There is no scoring system involved and a bank has the right to keep a record there for 5 years after it’s been placed on the report.
There is always someone cashing in on the misfortune of others and the prepaid credit card scene has seen an explosion of growth in the last 5 years. While consumers struggle to win back their “Credibility” with banks and lenders they find themselves on the side lines when trying to open a just a basic checking. Celebrities like Russell Simmons having been cashing it in with his prepaid credit card alternative to the basic bank checking account, the rush card as described in this recent ABC news article. So far 1.5 million consumers once rejected by the banks and lenders have already gotten on board with the hip hope mogul’s prepaid credit card. Prepaid credit cards are now a billion dollar industry.
For more information on how to navigate CheXsystems feel free to contact our office.
Nikitas Tsoukalis, President
Key Credit Repair