subject: Consumer Banking Tips: Listing of National Non Chexsystems Banks [print this page] Consumer Banking Tips: Listing of National Non Chexsystems Banks
Years ago, a company called eFunds invented a service called Chex Systems and started offering it to banks. Think of Chex Systems as the FICO scoring system of the banking industry. Except, unlike FICO (i.e., credit) scores, Chex Systems is not a scoring system. Rather, the mere appearance of your name in this database can mean instant rejection of a new checking account application.
If you show up in Chex Systems, most banks reviewing your application look into the matter no further and just flatly reject your application. That is, they automatically assume that you must be a big credit risk and they refuse you a new checking account.
Showing up in Chex Systems can have a number causes. Everything from some sort of bank fraud to debit/credit card abuse can be factors. And, your name can stay in Chex Systems for years, making it incredibly hard to be approved for a new checking account by any bank.
Fortunately, there are a number of banks in the marketplace (10-20% of them) that do not refer to Chex Systems when considering a new application.
Trouble is, most banks do not directly advertise the fact that they do not use Chex Systems. Why? Because the typical consumer does not know what the term means, so these banks do not use it in their marketing or advertising materials.
To find a listing of national non Chex Systems banks requires some searching. There are of course blogs and other information aggregator web sites online that show such listings, but most of them are not truly comprehensive or they are trying to angle you to one particular bank. Your best bet to find such a listing is to do a search for such a bank via a search engine, inspecting one banking website at a time and evaluating your choices. The criteria you should use for evaluating a non Chex Systems bank are the following:
1. Make sure they are FDIC insured.
2. The bank should have a free or inexpensive application process.
3. Bonus: find one that is non-traditional in other ways, such as one that does not charge overdraft fees - ever (for example, check out: http://www.escape-overdraft-fees.com/).
If you are looking for a second chance checking account because your application for a checking account has been rejected, find and evaluate at least 2-3 non Chex Systems banks before you make your choice. And, be sure to pay attention to the criteria listed above when making your decision.
