You may not have heard about ChexSystems until one day you got your checking account closed on you or were denied for a new bank account. Not many people even realize that most banks use a reporting agency but if you get put on the ChexSystems list you may find it a big problem opening up a new bank account.
What is ChexSystems?
ChexSystems can be compared to one of the major credit reporting companies but instead of keeping track of your credit history they keep track of your banking history. When a bank uses this agency they will report people who have misused or mishandled bank accounts and then that person is put on the ChexSystems list for every other bank to see. The information is shared with all the financial institutions, which means that if you had an account closed on you with one bank you are most likely going to have trouble opening a new account at another bank if they are using this system.
Some of the ways that you can end up on the ChexSystems list is having too many overdrafts on your account, writing bad checks, closing an account with a negative balance, and engaging in illegal activity.
If you find that you are on the list and you are having trouble with getting a new account at a bank, there is still hope to get an account with a bank that doesn't use this reporting agency or offers a second chance checking account.
Finding Banks that Don't Use ChexSystems
The first thing you should realize is that second chance checking accounts come with certain restrictions and usually higher fees. Basically they are probation accounts to see if you are able to handle the account with no problems for the next year.
A lot of time local credit unions may not use ChexSystems and may be a good option for people who can't get an account with a bank. Not all credit unions will approve just anyone though, as most of them have certain stipulations you have to meet as well, but it can be worth your time to check out your local credit unions for a checking account.
Look for banks that use credit reports instead of ChexSystems. Even if you don't have the best credit a lot of banks who use credit reports like Equifax will still give you a second chance account but it may come with higher fees or more restrictions.
Lastly, doing a search for "banks that don't use ChexSystems" will get you hundreds of results. Just be sure that when you look at these banks that before applying for an account you make sure of a few things. The bank should be FDIC insured. They should be listed with the Better Business Bureau. The bank should also not charge an outrageous amount of fees for simple things like monthly statements, a debit card, and withdrawals.
Finding banks that don't use ChexSystems is definitely not the easiest thing, but there is hope if you invest some time and energy into finding one of these accounts.
What is ChexSystems?
ChexSystems can be compared to one of the major credit reporting companies but instead of keeping track of your credit history they keep track of your banking history. When a bank uses this agency they will report people who have misused or mishandled bank accounts and then that person is put on the ChexSystems list for every other bank to see. The information is shared with all the financial institutions, which means that if you had an account closed on you with one bank you are most likely going to have trouble opening a new account at another bank if they are using this system.
Some of the ways that you can end up on the ChexSystems list is having too many overdrafts on your account, writing bad checks, closing an account with a negative balance, and engaging in illegal activity.
If you find that you are on the list and you are having trouble with getting a new account at a bank, there is still hope to get an account with a bank that doesn't use this reporting agency or offers a second chance checking account.
Finding Banks that Don't Use ChexSystems
The first thing you should realize is that second chance checking accounts come with certain restrictions and usually higher fees. Basically they are probation accounts to see if you are able to handle the account with no problems for the next year.
A lot of time local credit unions may not use ChexSystems and may be a good option for people who can't get an account with a bank. Not all credit unions will approve just anyone though, as most of them have certain stipulations you have to meet as well, but it can be worth your time to check out your local credit unions for a checking account.
Look for banks that use credit reports instead of ChexSystems. Even if you don't have the best credit a lot of banks who use credit reports like Equifax will still give you a second chance account but it may come with higher fees or more restrictions.
Lastly, doing a search for "banks that don't use ChexSystems" will get you hundreds of results. Just be sure that when you look at these banks that before applying for an account you make sure of a few things. The bank should be FDIC insured. They should be listed with the Better Business Bureau. The bank should also not charge an outrageous amount of fees for simple things like monthly statements, a debit card, and withdrawals.
Finding banks that don't use ChexSystems is definitely not the easiest thing, but there is hope if you invest some time and energy into finding one of these accounts.
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