If you are denied a bank account, you can open one by applying for a "second-chance" checking account, checking your ChexSystems report for errors, or trying credit unions and online banks like Chime or Varo. These options cater to individuals with negative banking histories, allowing you to establish responsible use and eventually upgrade to a standard account.
There are several reasons a bank can deny you a checking account. Here are two common reasons: Prior issues with having a checking account, such as writing bad checks and having a bank to charge off the account. Unable to provide sufficient identification at account opening.
If you have a poor credit rating or a low income, you may have problems in opening a standard current account or savings account. You may also have problems if you already have a current account which is overdrawn. If you're in this situation, you may be able to open a basic bank account.
If denied a bank account, find out why (often a ChexSystems report), correct any errors, pay off old fees to clean up your banking history, and explore "second chance" accounts or basic bank accounts that are easier to get, or consider prepaid debit cards and credit unions as alternatives.
The severity of the issue, the credit reference agency, and the reported information can determine how long you are blacklisted. Negative information on your credit record normally stays for six years before being deleted.
To do this, you can visit the official website of the Central Bank of Nigeria and enter your BVNs to check your status. If your BVN is blacklisted, it indicates that your account has been flagged for irregularities or fraudulent activities, thereby leading to restrictions on financial transactions and withdrawals.
Negative information typically stays on your ChexSystems report for five years from the report date, though some negative items can remain for up to seven years under certain federal regulations, but you can dispute errors or pay debts to potentially get information removed sooner or updated to show "paid in full". Financial institutions use this history to assess risk for new deposit accounts, so resolving issues is key to getting approved for a bank account.
Being blacklisted by banks often results from negative banking histories reported by ChexSystems, affecting account opening. ChexSystems operates like credit bureaus but focuses on banking behaviors, not credit management.
Even a small issue in the past can make it harder to open an account with a traditional bank. But being blacklisted doesn't mean you're out of options. Suits Me offers accounts with no credit checks, so your financial history won't stop you from getting back in control of your money.
If you want to have your information excluded permanently, you may print, complete, sign and return a ChexSystems Permanent Opt Out Election form. Please complete the entire form. Failure to provide complete and accurate information may prevent the processing of your request.
How To Fix a BVN Blacklisted Issue
The majority of banks – including OneUnited Bank – use ChexSystems. Many banks will not open a new deposit account for a customer who has a negative item reported. (OneUnited Bank is more forgiving and has a second chance checking account – which we will discuss later.)
Find Out Why You Were Denied a Bank Account
First, review your consumer reporting files. Banks rely on consumer reporting agencies such as ChexSystems or Early Warning Services to get banking history information on applicants.
Opening an account with a ChexSystems report
Some financial institutions may deny everyone who has a ChexSystems report, while others may only deny people with certain types of activity. ChexSystems itself does not approve or deny applications; it merely provides reports to financial institutions.
Steps to Clear Your Name After Being Blacklisted
It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.
Yes, you can often open a bank account even if "blacklisted," but it's harder and usually requires specific solutions like second-chance accounts, prepaid debit cards, or credit unions, as negative marks (like ChexSystems) stay for up to 5 years, but some banks offer pathways to rebuild trust. Focus on clearing old debts, opening a basic account with fewer features, or finding institutions that specialize in helping people with past banking issues.
Most checking account denials stem from ChexSystems reports showing past banking problems, not your credit score or employment status. The fastest path back to traditional banking is usually: Get your ChexSystems report (free once per year) Dispute any errors and pay off any outstanding balances.
Most high-street banks will automatically decline your application, even if the marker isn't related to fraud you committed. The good news? You still have options. Suits Me offers a no-credit-check current account that can be opened online in minutes, even if you have a CIFAS marker.