topic Re: Denied 3 bank accounts in Personal Finance

Denied 3 bank accounts

IcyCool7227 — Thu, 26 Sep 2019 03:18:46 GMT

In the past week I have been denied 3 different bank accounts. The Digital Federal CU that has a 6.17% savings APY up to $1000 - highest I've ever seen. BrioDirect savings of 2.46% APY. Then Varo with a checking account and 2.12% APY savings that you open after the checking acct. is approved. I don't know exactly why I got denied as I have no negative banking history. DCFU said there was a delinquency in the Chex Systems. I'm waiting for my Consumer report to come from Chexsystems which should be here tomm. or Friday. But I don't understand what that has to do with my bad credit that I've posted about elsewhere on this board. I am not asking for credit from these banks at all. I like the Varo account because it rounds up and pouts the money into a daily savings account. I can then transfer that amount to my Vio savings account and the DCFU to earn even more interest that way. I also opened up a Chime bank account earlier this year. Is it too many inquiries? What could be the problem? Varo told me they don't look at my credit report yet they do a soft pull for security so is that a lie? I did close my 10 year old U.S. Bank account last month with a zero balance - was that a mistake to do? Do these other banks look at my oldest account? Please help.

Re: Denied 3 bank accounts

Anonymous — Thu, 26 Sep 2019 04:34:41 GMT

When you have an issue with a bank(s) they report generally to chexsystems. That will stop other banks from opening A checking or savings account.

Re: Denied 3 bank accounts

Medic981 — Thu, 26 Sep 2019 05:31:02 GMT

If you have an issue with a derogatory on ChexSystems and you are unable to clear it up easily, you may need to find an FI what offers a second chance checking account.

Re: Denied 3 bank accounts

privacyadvocate69 — Thu, 26 Sep 2019 19:18:57 GMT

Maybe they just don't want you as a customer? Do they have any reason to?

Do you have a lot of money to deposit?
Can you borrow a lot of money from them?
How are they going to make money from you?
Why do they want to acquire you as a customer?

Try applying for a checking account somewhere with a very low interest rate. If you get approved for it, I think you will know the answer.

Re: Denied 3 bank accounts

BearsCubsOtters — Thu, 26 Sep 2019 21:25:15 GMT

@IcyCool7227 wrote:
In the past week I have been denied 3 different bank accounts. The Digital Federal CU that has a 6.17% savings APY up to $1000 - highest I've ever seen. BrioDirect savings of 2.46% APY. Then Varo with a checking account and 2.12% APY savings that you open after the checking acct. is approved. I don't know exactly why I got denied as I have no negative banking history. DCFU said there was a delinquency in the Chex Systems. I'm waiting for my Consumer report to come from Chexsystems which should be here tomm. or Friday. But I don't understand what that has to do with my bad credit that I've posted about elsewhere on this board. I am not asking for credit from these banks at all. I like the Varo account because it rounds up and pouts the money into a daily savings account. I can then transfer that amount to my Vio savings account and the DCFU to earn even more interest that way. I also opened up a Chime bank account earlier this year. Is it too many inquiries? What could be the problem? Varo told me they don't look at my credit report yet they do a soft pull for security so is that a lie? I did close my 10 year old U.S. Bank account last month with a zero balance - was that a mistake to do? Do these other banks look at my oldest account? Please help.

So you have a Chime checking account only? If DCU informed you that there was a delinquency on Chexsystems then you should wait until you get your report as well as the denial letters from DCU/Brio/Varo to find out what it is.

Keep in mind, even if you cleared up an overdraft, it most likely would still have been reported. If there are enough red flags, such as frequenct overdrafts, excessive, recent inquiries for new deposit accounts and a lot of recently opened/closed deposit accounts, a new financial institution may feel that you are either too much of a risk or will not be profitable enough for them.

I doubt that these banks denied you for a new deposit account based off what you describe as your bad credit. Most will go off of Chexsystems or Early Warning Systems (EWS). A lot of people have no idea that their checking account mishaps get reported there.

In the meantime...do not apply for any other deposit accounts until you know what the issue is on your report and have fixed it.

Re: Denied 3 bank accounts

CreditCuriosity — Sat, 28 Sep 2019 16:02:56 GMT

Most likely it is Chex's inquiries or chex's score and no deragtory item at all. Banks and CU's are super sensitive to chex's inquiry recently. If you have open alot of DDA accounts aka checking/savings account recently that is most likely your reason if you have nothing bad on your chex's report. Going through that nightmare now and frooze my chexs so it doesnt accidently get pulled for at least 6 months. Best of luck with chex's as they stink to deal with

Re: Denied 3 bank accounts

Anonymous — Sat, 28 Sep 2019 21:37:48 GMT

I don't know about the other two but DCU is sensitive to Chex inquiries for sure.

Re: Denied 3 bank accounts

GApeachy — Sun, 29 Sep 2019 07:56:59 GMT

So does this stuff fall off like derogs on a cr?

Re: Denied 3 bank accounts

CreditCuriosity — Sun, 29 Sep 2019 22:07:44 GMT

@GApeachy wrote:

So does this stuff fall off like derogs on a cr?

5 years i believe

Re: Denied 3 bank accounts

Anonymous — Mon, 30 Sep 2019 16:36:04 GMT

^^^ correct. I ordered my Chex report last month and it said right on it that derogs fall off after five years.

Re: Denied 3 bank accounts

Anonymous — Wed, 02 Oct 2019 02:45:37 GMT

My last ChexSystems report (January 2019) stated inquires remain on the report for up to three years.

Re: Denied 3 bank accounts

IcyCool7227 — Wed, 02 Oct 2019 04:23:58 GMT

I got the report from Chex Systems and there are 12 inquiries in the last 3 years but 2 of them are duplicates and 3 of them were loan requests. 1 in 2016 that is due to fall off Oct. 18 this year, 3 in 2017, 4 in 2018, and 4 this year. I disputed the duplicates and loan requests. Should I request an Early Warning Systems report or don't many institutions use that? Nothing else negative was in the report.

I want to open up an Orion Federal CU 4% checking account but want to hold off for a while until more drop off and I have a large sum of money to offset the monthly fee.

Re: Denied 3 bank accounts

Anonymous — Wed, 02 Oct 2019 17:29:26 GMT

Yeah, this may be because of your inquiries... though you don't have that many.

I read some articles about people signing up for a lot of checking and savings accounts for the sign-up bonus, and the question often asked is "How many accounts can you open before the banks start to get suspicious?" The number I heard was about a dozen in a year. Also what sets off alarm bells is opening and then shortly closing accounts. If you keep the account open for a while (I think at least a year) that doesn't "count" as alarming behavior.

I haven't done that, but I have several bank accounts opened in the last few years (I want to find just the right one!). No churning involved. When I have more money I want to open up one of those high-interest checking accounts and I hope I won't be refused because of all my "new" checking accounts (not that many, and I haven't closed any).