123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Solutions For Chexsystems & Bad Credit

Profile Picture
By Author: Ivan Cuxeva Jr
Total Articles: 782
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

It is often thought that bankruptcy, collections and ChexSytems records are the end of an individual financial history. This is a common misconception which needs to be addressed before going any further. We are all humans and as such, we face ever changing social influences which sometimes affect our financial situation, a good example could be: missing mortgage and credit card payments, overdrawing checking accounts due to the ailment of an uninsured family member is one of several common reasons why good and honest people find themselves in such predicaments.

The example above depicts two serious problems which can be solved by having the right information.
When someone misses a credit card, personal loan or mortgage payment, the creditor/company reports a payment interruption to the credit bureaus (Experian, TransUnion and Equifax), each one of these bureaus has its own way to calculate credit scores based on carefully formulated mathematical formulas. Once this report is posted to a person credit report, the credit score fluctuates and the credit score is the main piece of data Financial institutions base their decisions upon, when it comes to loan and line of credit approvals.

Obtaining a credit card, even though your credit is less than perfect, is not that hard. These credit cards can be used to re-established or rebuild bad credit but it is important to keep in mind that the interest rates will be higher. Another option available to individuals looking for a credit card under these terms is to get a prepaid debit card or credit card, where the account requires an initial deposit which determines the credit line available.

Similar to credit bureaus, ChexSystems keep records of individuals who have overdrawn their checking account and a considerable amount of time has gone by without repayment.

When it comes to debit accounts which have been cancelled and reported to ChexSystem a customer can open another account through a non-ChexSystem/Telecheck institution. Second chance checking accounts are also available to address such problem.

It is always extremely important to be on top of our daily finances to avoid complications. Free and affordable tools such as free credit reports are also available to help improve our credit and avoid identity theft issues, but if the moment comes when you need to use any of these resources it is a great relief to know that they are available regardless of how bad the situation may be.

Total Views: 121Word Count: 399See All articles From Author

Add Comment

Investing / Finance Articles

1. Finance How Much Importance It Is?
Author: joseph smith

2. What Is Corporate Banking All About?
Author: Zachary Micallef

3. Four Different Types Of Banking Services
Author: Zachary Micallef

4. What Is The Best Broker For Options Trading? Balance Your Need From I9option
Author: John Miller

5. Accel Partners Leads Inr 27 Crore Pre-series A Round In Credgenics
Author: Stuti

6. How To Learn About Stock Trading?
Author: Hitesh Varpe

7. How Is Online Stock Trading Beneficial?
Author: Hitesh Varpe

8. Online Discount Coupons In Usa
Author: joseph smith

9. Share Trading Signal Provider (trichy, Chennai)
Author: Hunch Trading

10. Earnfinex
Author: Richardzambrano

11. What Is The Best Way To Learn Finance For Beginners?
Author: Daniel Stewart

12. Things Required If Your Car Is Financed By A Company
Author: surelend

13. How Can I Plan Out My Financial Goals?
Author: Daniel Stewart

14. Money Saving Is Not So Tough
Author: joseph smith

15. What To Remember While Hiring An Asset Management Company?
Author: Avendusgroup

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: