What To Do If Your Bank Account Application is Denied
A report from CNN Money say that 15% of bank account applicants are denied the ability to open a regular savings and checking account. If this happened to you, would you know what to do? In this article, we’ll talk about your options.
Why Would a Bank Deny a Checking Account Request?
The first point to remember in answering that question is that banks are in the money making business. If you’re seen as a risky investment that will cost them money, they’ll probably deny your application. When you submit your application, the bank will take a look at information from the three main credit bureaus as well as other companies that have information about your banking history. Negative information that can potentially sink your application include:
- Having an unpaid balance on an account, like an overdraft that was not repaid or an account closed by a bank or credit union;
- A history of writing bad checks; and
- Suspicion of being involved with fraud.
What Can I Do If a Bank Denies My Application?
There are a few proactive things you can do if you’re unable to open a new banking account.
- Ask the bank to reconsider their decision. Keep in mind that every bank decides for itself how to evaluate the data on your credit report. Because their third party services that provide the data are not involved in the approval or rejection of your application, asking the bank is a good first step in getting them to reconsider their decision.
- Pull a copy of your credit report and clear up any false information. Because the bank is using this information to make their decision, it only makes sense to ensure they’re looking at factual material. If the bank did in fact use the services of a third party to run your information, they are required to provide you with the name and contact details of the provider.
- Ask the bank about “second chance” accounts. About one in five banks offer second chance accounts for people unable to open a regular checking account. They may have high fees and more restrictions than traditional accounts, but they’re far more affordable than other options like fees for check-cashing and money orders.
There’s Ways To Get Out From Underneath Crippling Debt; Call The Oswalt Law Firm For Details
No one likes facing crippling debt every day. You should take solace, however, in realizing that you’re not alone and you do have options. We’d love to talk with you more about it, so get in touch with us here at The Oswalt Law Firm. The first consultation is always free so call us at 602-225-2222.