Have you been denied by the banks when trying to open a new bank account? If so, you are likely on Chexsystems' list of offending bank account users. The majority of banks refer to the Chexsystems service to screen new account applicants. Finding the minority banks that offer no Chexsystems checking accounts will relieve you of the inconvenience and expense of operating without a checking account.

You are not alone if you are a Chexsystems victim. Chexsystems is a database that many financial institutions reference to decide if prospective clients are too risky to take on. The information organized on this system is both provided and used by participating members. Banks will report you to Chexsystems for a number of reasons, all of which relate to bad banking habits. Possible reasons include bouncing checks, multiple overdrafts, debit card abuse, non-payment of fees, use of false information to open the account, and fraud. Once your name is in the database, you will find it rather difficult to open a new bank account with Chexsystems banks.

Though the ratio may seem more, especially when you run into a string of rejections in your attempt to open checking accounts without Chexsystems, it is known that over 80% of financial institutions use the popular credit verification service. Thus, this means that there are approximately 10% to 20% of banks that do not use Chexsystems. You need to focus on these non Chexsystems banks that will offer bank accounts without Chexsystems verification.

Conducting an online search could save you some time. While you are online, consider looking into offers pertaining to the availability of second chance checking accounts. A second chance checking account is a unique account that does not involve a credit check of your banking history. Thus, these are perfect checking accounts for people on Chexsystems or people with bad credit.

A 2nd chance checking account is in many ways similar to a conventional checking account. It has its own bank account number, routing number, and debit card for use at ATMs. You can deposit, withdraw, pay bills, and transfer funds from your account online. The majority of them are "check-less" accounts but there are a few that include paper check writing privileges. The major drawback of second chance banking is the higher bank fees charged compared to regular bank accounts. Considering that your name could be on Chexsystems for up to 5 years, the higher expense could outweigh the inconvenience of not having an account. You will need to decide that once you analyze the offers in more detail.

Second chance checking accounts are a form of ne Chexsystems checking accounts in that they do not use information in the database to determine eligibility. Before deciding to sign up with any bank, online or otherwise, it is very important that you verify that the bank is FDIC (Federal Deposit Insurance Corporation) insured to ensure that your money is protected should the bank fail. Banks are competitive so make sure that you spend some time researching and comparing all offers to get the best possible deal for your particular needs.