The Chex Systems, Inc. provides account verification services to its financial institution members to aid them in identifying account applicants who may have a history of account mishandling (for example, people whose accounts were overdrawn and then closed by them or their bank. Each report submitted to ChexSystems remains on their files for five years.
Because of so many consumers unable to open up a checking account with a bank or credit union because of a negative mark on their chexsystems report, they had to resort to using high priced check cashing services that are usually located at payday loan advance centers or using a prepaid card that offers direct deposit. This can make it difficult for these consumers to save money.
A free self help consumer guide called Bad Credit MD has a detailed list of banks and credit unions that are currently offering second chance checking accounts to new account applicants. This list can be found at http://www.badcreditmd.com/
The Company says that consumers can find banks and credit unions offering second chance checking accounts in Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Bad Credit MD has been in business helping consumers with bad credit since April of 2007. The staff has various backgrounds in the financial and mortgage industry. This self-help site has over 500 pages of credit advice and articles. Its staff has researched its information with various governments around the world to provide the most comprehensive and accurate information free of charge.
It is important for consumers to understand that even a small amount of money saved by not paying fees at check cashing services can add up over time. If that small amount of money was put into a savings account every week and it was left untouched for years they would be amazed at how big that account would grow.
The reason? A combination of saving as much as possible on a regular basis and the impact of interest payments (what the financial world calls "the miracle of compounding")
Here's how a person can slowly build a large savings account and experience the miracle of compounding. Let's say the indivual put money into a savings account that pays them interest every month. After the first month, the interest payment will be calculated based on the money they put in. But the next time the bank pays them interest, it will calculate the amount based on the original deposit plus the interest they received the previous month. Later, that larger, combined amount will earn more interest, and after many years it becomes a much larger sum of money. The earnings are called compound interest. They can earn even more in compound interest if they make deposits regularly and stretch to put in as much as they can and leave it untouched.
Based on a savings account started with $50 and earning interest at a rate of 3.5 percent each month. If they add just $10 each month, the account can grow nicely to $714 after five years. If they instead put in a slightly higher amount such as $15 each month, they would have a balance of $1,042 after five years. But if they had increased their deposits to $50 a month, those extra dollars plus the compounding of interest would give them a balance of $3,333 after five years.