Checking Accounts For People On ChexSystems
Banks that don't use Chexsystems are banks that do not rely on a Chexsytems check on you to
decide if they're going to open a checking account for you. They can either not work with
ChexSystems at all, or be Chexsystems customers that are more flexible than most banks. Remember
that in this process, Chexsystems does NOT make the decision. It's entirely up to the bank that
you're approaching.
As weird as that may sound, you can very well be on ChexSystems and never find out about it.
That can happen if you have a few bank accounts, and you get one closed and you get reported to Chexsystems. The other banks are not going to close
your accounts and you will still be able to use them and carry on with your financial life. You
would only find out about being reported if you try to open a new checking account. That's when you
would be told by the bank rep or a supervisor that they're not able to open a new account for you.
Another way to find out is to order your Chexsystems report. You're entitled to a free one per
year.
When people find out they're on Chexsystems and can't open new checking accounts, the first
thing they look for is how to get their names removed from the database. While it's not impossible,
the least that can be said about the process is that it's cumbersome, and long. To understand this,
you have to also understand how Chexsystems works.
How Chexsystems Works
ChexSystems is pretty much a reporting agency for the financial institutions that subscribe to
its database service. It is a risk-reporting database of sorts that banks use to share information
with each other about which customers may represent credit risks for banking situations. This means
that its clients are the financial institutions. It compiles its information based on what those
financial institutions report. Similarly, if something has to be removed, the request from removal
has to come from the financial institutions. In real terms, this simply means that to get your name
removed from their database, you have to go through the bank(s) that reported you in the first
place and try and work something out (or wait 5 years until your name drops off the list).
So it's most likely that you don't want to go through all the hassle that comes with not being
able to have a bank account (for 5 years): not being able to write checks, pay your bills online,
use ATMs, direct deposit your paycheck, having to cash your paycheck and use money orders all the
time. This is why, while you're trying to solve your problem, you need to find banks that don't use
Chexsystems so you can at least go on with your life.
There are several prepaid debit card providers on the web, some that even offer free direct
deposit or no activation fees. If you're comfortable with that, it can be a pretty decent option.
These are prepaid debit cards that offer almost the same level of functionality as a checking
account. There's no credit check and no Chex screening, so you shouldn't have a problem with them
unless you've been found to be involved in bank fraud.
You can also find internet banks offering non-chexsystems checking accounts online. These bank
accounts will offer you all the financial options you are used to with a normal bank account - bank
transfers, bank deposits, and bank withdrawals, ATM transactions, online bill pay and online
banking. You are even given a debit card linked to your account so you can shop online. If you want
one of these second chance checking accounts, you should do some comparison shopping online to make
sure you pick one that offers you the best deal.
How to Find Banks that Offer Second Chance Checking
Accounts
Here is how to go about getting a non-chexsystems checking account:
- Research a reasonable amount of banks that offer second chance checking. You should at
least have about half a dozen solid prospects
- Make sure the bank you choose is FDIC-insured. It makes no sense to put your money in a
bank where it's not protected.
- It is preferable if your bank offers an online banking option. It's also preferable to look
for a local bank, since it will most likely be a better option than a strictly online
bank.
- Make sure you will be granted access to a nationwide network of ATMs. Otherwise you'll be
too limited and the whole process will be like a waste a time.
|
Top of page
