Account is going to close due negative balance, need advice

Submitted by Ublivion25 t3_10nt2wl in personalfinance

So long story short, I was in a car accident, and unemployed at the time on top of university, fees started to pile on and I had to fix my car so unfortunately my account went in the negative. However I am now graduated and working and in a position to where I can pay it back quite easily. The problem is I recently got the Job and my first paycheck hits a few days after the last day to pay the account before it is closed. Any advice? Or information on how the closure of this account will affect me? I’m go into pay of the balance pretty fast but dreading how this is going to affect me in the future. Thanks in advance!

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kapoor101 t1_j6ao8vj wrote

I would let the bank know that the balence will be paid of on this date.

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Ublivion25 OP t1_j6apotm wrote

I tried doing that and they basically said they couldn’t do anything, I’ll call again and see what I can do 👍🏾

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Lady_Paks t1_j6aubxr wrote

I would speak with a banker at your local branch about the account. Even if they don't have a way to extend the closure date they can give you an idea on the process for repayment and the close out fee. If you had overdraft fees you can ask for courtesy refunds BEFORE it closes so the balance plus your closure fee are not so high.

A charged off account won't report to chexsystem right away and you already have another account so you should be fine. I have seen clients charge off and pay it back within a week and open a new account with the same bank without issue. Of course each bank is different so ymmv.

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Ublivion25 OP t1_j6jh8kg wrote

This ended up being exactly what I did and everything worked out great, thank you again!

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DeafJeezy t1_j6aoh0u wrote

At the end of the day I would recommend getting this account positive.

Letting it close puts you in the position of not being able to open a bank account anywhere.

That said, I recognize that it may take several weeks or a month or two to get the funds to bring your account back into positive.

I would suggest that you maybe divert this first paycheck into another account if able or get it cashed for you to have some funds to live on.

Allowing this account to be closed is a nonstarter. You need a bank account as an adult.

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Ublivion25 OP t1_j6apzad wrote

I already opened up another bank account exactly because this issue so I’ll at least have access to my money. Thank you for the advice!!

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nkyguy1988 t1_j6aqm5u wrote

Be careful, sometimes the new account can be notified that an applicant had their profile updated. Not saying they will get it, or even do anything with it, but that can be a thing.

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Alpinebolt t1_j6avy56 wrote

My ex didn't pay on our 2nd mortgage and it put me on the bad check registry I couldn't open an account for 3 to 5 years. US Bank had what they called 2nd chance checking. Or I would open a credit Union account where you could do it for only a dollar. Before this happens. I would open an account somewhere else to protect yourself from this problem.

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Ublivion25 OP t1_j6epunm wrote

Thank you!

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Alpinebolt t1_j6f2y8c wrote

us bank saved me , my ex was continually late on her car payment and they could take it from my credit union account , so I had to close it for a while. us bank waved fees if you had direct deposit. but there was a free basic checking account I believe.

good luck.

14 years later still at Us Bank.

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boredtiger2 t1_j6d753u wrote

Relax. Ask for a check not direct deposit. Cash it. Clean things up. New bank. New account. You have time on your side.

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ninnie_muggins t1_j6epgrk wrote

Call and ask for a payment arrangement. Don't give the backstory, no need. Keep it short and sweet. They definitely want their money so shouldn't be an issue!

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chaosbreaking1 t1_j6hlzxg wrote

If you use non traditional bank, like Charles Schwab, a stock broker, there are no fees for checking and their all checking accounts earns interest. You even get unlimited free checks.

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chaosbreaking1 t1_j6jhzfq wrote

Since Schwab has no ATM ‘s they reimburse you for ATM fees for any ATM in the world. However that cannot take in cash.

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