ChexSystems: Alternative Options for People Whove Been Checking Accounts
August 4, 2008
Individual banks elect to become members of ChexSystems, and to use their services.
Those individual banks are the ones who decides what is sufficient cause to close your account and report you to ChexSystems.
It can be what they consider to be frequent overdrafts, ATM card misuse, an intentional act of fraud, etc.
When that person attempts to open an account at another member bank a ChexSystems inquiry is made.
Once you become one of the over 8 million names on the ChexSystems "black list" your information stays in their database for 5 years.
During this period, whenever you try to open a new banking account, either personal or business, with a bank that runs ChexSystems inquiries, you will most likely be denied.
If you are listed on ChexSystems it can be a major inconvenience in your life, but you do have some choices if you would like open a new checking or savings account.
Here are some options, and/or alternatives:
Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers
August 2, 2008
What is trade credit?
One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by credit card at the time of sale. Because of this, most consumer businesses never have to worry about extending credit to a customer and can run their operations on an "all cash" basis. This allows them to focus on their core competencies because they don’t have to carry slow paying Accounts Receivables and go through the expense of collecting on such accounts.
However, commercial transactions are different. Most clients ask their suppliers to deliver services immediately and then to invoice them for the work, payable 30 days later (also known as offering net-30). In effect, clients ask their suppliers provide them with "trade credit" for 30 days. Although suppliers don’t like offering trade credit, most have accepted it as an industry standard and have learned how to operate and live with it. In fact, some suppliers have even mastered how to offer trade credit and use it to better position their companies with leading clients. Large creditworthy customers, such as the government or large companies, will usually demand trade credit as part of their contract negotiations. Some examples of entities that ask for 30 to 60 day payment terms are:
Credit and Banking Money Saving Services
July 30, 2008
The first rule when applying for banking and credit services is to always read the fine print and to understand all of it. Read up, take it home, and analyze it, ask the banking manager questions. The fine print is there for a reason. The charges and requirements contained in there, will affect the savings or added expenses you incur, whenever you bank or use credit.
Checking Account You can generate savings of more than $100.00 a year, when you select a checking account with a low or no minimum required balance. Request a list of the fees that are applicable to your account and compare with other checking account offers. Read the fine print. See if you qualify for the conditions and stipulations, the bank requires.
Savings account Prior to opening a savings or investment account with the bank of your choice, ask the bank and check to see that the account is insured by the federal government (FDIC or NCUA). Otherwise, you will assume 100% of the risk; you may end up risking more rather than saving.
Saving Money: Quick Cash, High Cost
July 27, 2008
I didn’t think it was possible. But it is. Folks, there is something worse out there than putting everyday expenses on a credit card, then carrying the balance. The guys I’m going to tell you about make the credit card people look downright benevolent. Meet your smiling neighborhood cash advance parlor.
These legal loan sharks go by names like EZ Money, Cash ‘N Go, Red E Cash, Cash in a Flash, the Money Tree, and others.
Here’s how it works. You want cash now. Payday isn’t for another two weeks. So you head on down to the loan shop. Just show them your driver’s license, bank statement and pay stub. Write a check dated two weeks from now for, say, $200. A minute later, you’re back on the street, $170 making a comforting bulge in your wallet. Two weeks later, the loan shop deposits your check. Pretty cool, huh?
What’s that? You say your check was for $200, not $170? Do you recall when they mentioned a “small convenience fee”? That’s the missing $30.
What would you say if I told you that “small convenience fee” amounted to an annual interest rate of 416%?
Stop Struggling Because Of Poor Credit And Improve Credit Rating Now
July 23, 2008
Did you apply for a personal loan only to be turned down by a bank or lending institution? Like most people there is always a need to borrow money to buy a car or to renovate a home or even to get a student loan. There are many reasons why people need a loan and lenders turn people down from a loan application based on ones credit rating and credit score. Fortunately there is a way to resolve this situation by obtaining a credit report and checking to see if there are any inaccuracies or items that should not be in the credit report. By cleaning ones credit report it begins the process towards obtaining credit and even better interest rates on loans.
With the costs of living on the rise and the limit that one has on earnings it is easy to understand why borrowing becomes necessary for a lot of people. However, care must be taken to ensure that when money is borrowed it can be paid back to the lender.
My Student Credit Card Adventure
July 21, 2008
And some practical advice too!
My first credit card?
I remember my college days when it seemed there was a credit card advertisement on practically every bulletin board on campus. The banks would travel to the college and set up application booths on registration day. Hundreds of students would apply for a credit card. As an enticement, we were offered freebies like T-shirts, water bottles, and key chains. So I took whatever they were handing out. You can’t beat free. The next thing I knew, I had signed on the dotted line. It wasn’t long before that little plastic card arrived in the mail. It was time to establish my credit history. I was off to the mall. Life was good!
Stuff happens?
I made my student credit card the solution to all my financial emergencies when I attended college. Needless to say there were plenty of them. There were tuition bills, school supplies, car repairs, and midnight pizzas to pay for. The old saying was true. "When they’ve got you, they’ve got you". That little piece of plastic bailed me out of more financial predicaments than I could count. I honestly don’t know what I would have done without it. The student credit card "thing" was a pretty cool idea.
How To Avoid Becoming A Victim of Identity Theft
July 18, 2008
With identity theft statistics currently at an all time high, and climbing, it just makes sense that we should all be doing everything we can to protect ourselves.
One of the most prevalent yet overlooked ways your personal information and passwords may be being compromised is through the presence of Spyware on your computer.
Note these very disturbing Facts about Spyware and Identity Theft:
- 27.3 million Americans have been victims of identity theft in the last five years, including 9.91 million people or 4.6% of the population in the last year alone.
- Spyware infects 91% of all computers. That equates to an alarming 9 out of 10 computers!
Stop thinking Identity Theft can’t happen to you. It can.
Spyware is without doubt the most prevalent threat to online computer privacy and security.
You maybe wondering, exactly what is Spyware?
Spyware applications are programs and files that hide on your PC’s hard drive without your direct knowledge. They allow hackers and advertising companies to track your every move, both online and even when you work offline.
ChexSystems: Who They Are and How it Affects You
July 14, 2008
ChexSystems is a company that maintains a subscriber membership service used in the banking industry. The members consist mainly of Banks, and Credit Unions, but can include other types of Financial Institutions.
It provides its members with what it calls deposit account verification services. The members use the information that ChexSystems provides to identify applicants that have had what they classify as a suspect banking history.
ChexSystems maintains a central database containing all of the information that has been reported to them. This information is shared among the network of member banks and credit unions to assess the level of risk in opening new accounts.
When someone applies to open a new checking account at a ChexSystems member bank, a ChexSystems inquiry is made. If the inquiry is returned stating that the person has had previous problems with another bank, that individual will often be denied from opening the account based on that ChexSystems report.
For this reason ChexSystems is considered as a Consumer Reporting Agency. This makes ChexSystems subject to the same laws as the Credit Bureaus that we are all familiar with: Experian, Equifax, and Trans Union.
Know Your Credit Card Rights
July 11, 2008
When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the terms
between you and the bank, such as the interest rate and how its calculated, the grace period, whether there’s an annual fee, etc.
While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn’t feel similarly committed.
Lenders like to constantly amend the terms, effectively changing the deal after it was made. This is one of the few industries where you can be charged more than you originally agreed to pay.
One of the main reasons they’re doing this is because they are constantly checking your credit score, looking for an excuse to raise rates and thus their income.
So, even if you have never been late on any payment to any bank or utility, your credit score can raise as you’re approaching your credit limits. Or you could have missed a payment or lost your job. Lenders have any number of excuses for their actions.
Credit Cards
July 8, 2008
Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the fine print. This type of credit is probably the most commonly used.
If you have a great credit rating, you’re probably bombarded with offers of new cards. They usually carry no annual fees, the interest rates are reasonable (as far as credit cards go), you get close to a month’s grace period and there might be some fetching initial offers, such as no interest for 6 months on balance transfers and new purchasers.
Others of us who are not so lucky, might have to pay $20 or more a year for a card, the interest rates will be higher and the come-ons less enticing or non-existent. Grace periods may be as short as 20 days and you might have to make sure you payment is received early enough so the credit card company will consider it paid on time.
Still others might not be able to get anything other than a secured credit card, one where you make a deposit first and then are allowed to charge to the extent of the deposit. This kind of card, while expensive, can be helpful in rebuilding credit if you have had credit problems.
