If you go to a credit unions for a chjecking account fo they check for past overdrawn accounts?

Question

I used to have a checking account but it got overdrawn and I couldn't cover it in time so they closed it. The thing is, I need a checking account. If I go to credit union as oppsed to a bank, will they check that system that banks report to? Are they going to deny me?

Answer 1

More than likely the bank reported you to the ChexSystem.
It will remain on that report for 5 years.

Whether or not a credit union uses the ChexSystem depends on the credit union.

There are many banks and credit unions that do not use Chex when people sign up for checking or savings accounts.

Also, some might use Chex on a person that signs up for a checking account, but won't when that same person signs up for a savings account.

You might go to www.chexvictims.com and do a search in their database of banks and credit unions that do not use Chex.

Answer 2

All banks have different processes for verifying new accounts. Some do nothing other than get your SSN, drivers license info and verify the information through a credit report while others are very strict. It all depends on the bank/credit union you are dealing with.

If there is money owed, you will not get an account anywhere. Check out the site below for a listing of banks that overlook past checking experience and as long as there is not an amount due, will give you a checking account.

Answer 3

Yes, the credit union is going to check to see if you have been reported. When I worked for a bank, they used a company called Chexsystems. Each bank has different policies about who gets reported. Your old bank might not have reported you. Check with them. They can also have your name removed if you clear up any fees you might still owe them.

Answer 4

They have to report too, just like a bank. I'd suggest you call and explain it all to them honestly. I find the credit union I belong to as being very understanding and helpful. They may put you on some sort of restriction, but it'll be worth it. So go ahead and give them a call, in fact call a few until you find one that you feel comfortable with.

Best of luck.