Banks that Don’t Use ChexSystems

Written by on February 15, 2011 in Money - No comments | Print this page

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BanksFor those who have been denied bank accounts because of ChexSystems reports you can try and get a checking account with banks that don’t use ChexSystems. Even though more than 80 percent of the banking industry use the ChexSystems reporting agency there are still the remaining 20 percent that will be very willing to provide you with their services.

There are many reasons why you would be reported in ChexSystems aside from fraudulent activity on your account. The most common reason why people ended up in the list is failing to pay the overdraft on their checking account. So always check your balance before issuing a check to avoid overdraft. It doesn’t mean that if you have a good credit score you won’t be listed, one simple mistake that you make like a bounced check, can put you on the list right away. Your name will stay on record for 5 years and will definitely limit your financial option since most banks use this report.

If you have been denied by banks to open an account you can ask ChexSystems to send you the report for free that’s within 60 days after the bank denies your application for an account.

Of course before looking for other banks and financial institution you need first to know why you are included in ChexSystems and how to remove your name from their list. It’s the banks that report your name and they are the ones that could also remove your name. Most will be willing to negotiate if you are willing to pay all the balance on your account. Some banks even though you are in the list will still let you open a checking account if they knew that all your balances with previous banks have been settled.

If you can’t pay the overdraft but need to open a new checking account then that’s when you look for banks that don’t use ChexSystems. You can look for those banks online. There are things you need to consider before opening a second chance checking account with a bank or credit union.

The bank should be insured by the FDIC, you don’t want to lose more money in case the bank closes. Even though you’re looking online for banks its preferable if the bank or credit union has a branch that you could go to and make a direct transaction. Check all the basic information of the bank and make sure it matches the owner, phone number and address. Check all the basic services and if there are monthly charges for their services.

Getting a second chance checking is important so that you could start building a good credit score. While waiting for your name to be removed from ChexSystems pay all your outstanding bills and overdrafts. Don’t make the same mistake of spending more money than you really have to. The banks that don’t use ChexSystems are basically your last chance to get a second chance checking account and help you get back on your feet.

There’s more where this came from.  The Credit Doctor has useful and easy to use information that will help you fix your credit.  Find out for yourself what is a good credit score.

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About the Author

Alana Johnson

Alana Johnson tries to enjoy the simple things in life and writes for the Lifestyle category on Quality Life Resources. Living in the small New England town of Norwalk, CT, she looks forward to the warm summer months. To submit your own article for my category, please click HERE. View all Self Improvement articles.