Dear Two Cents,I’m finally in a position to start saving some money.

I now have an adequate emergency fund, and I’d like to eventually get started with basic investing.

When I tried to open a high-yield savings account at a major bank, I was denied.

I also tried to open an interest checking account at the same bank.

Is this because of my bad credit history?

Sincerely,Credit Conundrum

Dear Credit Conundrum,I can imagine your frustration.

It sounds like you’ve improved your money habits, but your old financial issues are now haunting you.

This can be a for many people.

Here’s why you might have been denied, and what you’re able to do about it.

The very first step in this background check is usually taking a look at your ChexSystems report.

Other information reported includes security alerts or freezes.

More than 80 percent of commercial banks and credit unions in the U.S. have access to this report.

And almost all of those that have access will pull it, My Bank Tracker says.

Again, any delinquencies and red flags will show the bank that you are unable to manage money responsibly.

Check Your ChexSystems Report

Ordering your report is pretty straightforward, according toBargaineering.

The site offers asample report,too.

Some snippets from the sample are below.

This isn’t always possible.

But it’s worth checking to see if it’s a fixable issue.

Unfortunately, those issues can take about five years to clear, according to money siteQuizzle.

And, of course, in the meantime, you should keep on trucking with your good financial habits.

Obviously, this will prevent more issues from popping up on the report.

Consider opening an account at a smaller, local bank or credit union,My Bank Trackersuggests.

In fact, it might be helpful to ask if they’ll pull your standard credit report, too.

Also, credit unions are usually more lenient when it comes to negative marks on your reports.

From your question, it sounds like you’re mostly concerned with earning interest on your savings.

Many credit unions have higher interest rates than traditional banks.

Check out Woodruff’sfull postfor more credit union pros and cons.

Bankrate also offersa helpful listof high-yield interest accounts at credit unions.

For more detail, check out our post on how to find agood local bank.

We’ve also discussed the process of switching from bank to credit union.

CheckingFinderis also a great way to compare banks' interest rates and other perks.

With these accounts, the program process is more lenient.

But keep in mindyour approval might come at a cost.

According toBad Credit MD, E-Trade, for example, doesn’t pull applicants' ChexSystems reports.

They offer checks and debit cards for the accounts along with direct deposits and transfers.

Keep focusing on your good financial habits, and, eventually, the good will outrun the bad.

Good luck,

Two Cents

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