Reloadable credit cards and prepaid Visa or Mastercard accounts help you manage your money without a checking account. They provide tools like online bill payment and account management, ATM access, and direct deposit just like a checking account without the risk of overdraft fees.
These cards are also much easier to obtain than a checking account. Because banks risk losing money on checking accounts through fraud or misuse, they require certain identification and a ChexSystems check before you can be approved. ChexSystems is a warehouse of information about consumers’ negative checking account activity.
If you overdraw your checking account or have a returned check issue, your bank may report you to ChexSystems. That information is then relied upon by other banks when you go to apply for a new checking account.
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