subject: New Bank Accounts and No Credit Check - 5 Steps [print this page] New Bank Accounts and No Credit Check - 5 Steps
A new bank account ought to be something that every person - teenager, adult or senior citizen should be able to get. After all, banking is a pretty simple proposition: you give the bank your money to hold for a while to do with it as they please. Meanwhile, anytime you need to pay a bill online, withdraw some cash at the ATM, or check your balance, you can access your account and make it happen. Pretty simple, right?
Well, if it is so simple, then why do people everyday get rejected for a new bank account? Most people assume it is because they have a poor credit score. The truth is, that is never the reason.
Why People Get Rejected Every Day for New Bank Accounts
The real reason people get rejected for new accounts is something called Chex Systems. This is a huge database containing the name of every bank customer who has ever done something to make a bank not trust them.
Chex Systems was invented for the purpose of benefiting banks by letting them share information about "problem" customers. Of course, this leaves many would-be bank customers floundering to find a bank that will allow them to get a new account with no credit check.
Chex Systems has nothing to do with the FICO, or credit score, system, by the way. Rather, the reasons for getting your name reported to Chex Systems can vary greatly. Simply put, anytime a bank suspects you of check fraud, bank fraud, wire fraud, not repaying overdrafts, or some other questionable activity, they can and do report your name to this database.
New Bank Accounts and No Credit Check: 5 Steps
If you are looking for a bank that will not look at Chex Systems (your "banking credit" status) when considering your application, here are 5 steps to getting there fast:
1. Locate and put together a list of at least 4 or 5 banks that call themselves "second chance checking" banks.
2. View the website of each of these candidate banks and write down the details about the checking account offers of each one.
3. Compare the vital statistics about each bank's account, including information like: do they offer free checking? What is their overdraft policy? Do they have convenient banking hours?
4. Choose the best non-Chex Systems bank for you, based upon your own needs. And, do not ignore your intuition about each bank - how they make you feel goes a long way.
5. Apply for a checking account, either online or in person.
