Factors that prevent opening a new checking account?

Question

I'm dissatisfied with the service I've been getting from my current bank, and am looking to open a new checking account with another facility. I've had over-drawing issues with my current bank in the past an my credit in general isnt all that hot, but my current checking account has a positive balance and I've been working hard lately at cleaning up my credit such that I currently have no past-due accounts.

Could my past problems prevent me from opening a new account with another bank?

I had a credit card closed and sent to collection, but paid the account off completely last month (in one large lump payment) so it's been taken care of. It's the one true black mark on my credit. Would banks look at that even though it's been settled?

Answer 1

Hey Siren,

Being overdrawn will not prevent you from getting a new checking account, nor will your credit have an affect.

The only thing that will prevent you from getting a new account will be bad standing with Chex Systems.

Answer 2

I am also a Banker and if you havn't left the bank hanging with any overdrawn account they have had to take a loss on you should be ok. Just go in and open your new account before you close out this old one just to make sure.

Answer 3

I doubt they'd prevent u from opening an account but they might limit the services they provide eg limited or no overdraft and they might refuse a cheque book.depends how bad ur credit history is,it takes ages to repair credit damage

Answer 4

As long as you haven't had an account charged off and sent to collection, you should be okay!

Answer 5

usually not , as long as you have money to deposit with them. just be sure to read the fine print to make sure of the terms, like you don't want to pay interest as many banks now have no interest accts, and even accts that pay interest.