An FDIC study indicates that about 87% of banks use a third party credit check facilitator such as Chexsystems. Therefore, finding non Chexsystems banks to open a checking account can be challenging but not impossible. Doing an online search for banks that do not use Chexsystems is an efficient first step. However, be wary of sites that offer "lists" of such banks for a fee because the information could be outdated. With a little due diligence and some work, you can locate a non Chexsystems bank yourself for free.
Chances are if you are looking for a no Chexsystems checking accounts, you must have had a run-in with the verification service company. Do you have bad banking credit history? We all run into some financial hardship at some point but the important thing is to improve our situation and move forward. Regardless of how you got on the Chexsystems black list, you will likely find it impossible to secure a conventional checking account with most banks. As indicated, the majority of financial institutions subscribe to Chexsystems to access information on banking account misdemeanors of potential new clients. If you're in the Chexsystems database, you will be denied the opportunity of obtaining a bank account with the major banks.
If you're unable to open a new bank account due to a repeated history of excessive checking account abuse or bad credit, what are your available options? There are three potential alternatives for you to consider:
- Wait for your name to clear the Chexsystems database
- Find a non Chexsystems bank so you can qualify for a new account
- Open an online second chance checking account
Option #2 will involve locating no Chexsystems banks, a doable task but also very difficult given that the majority of financial institutions use the service. Besides utilizing the Internet to help find out which banks do not use Chexsystems, you can also call up smaller community banks or credit unions. Before signing up with any potential banks, ensure that they are FDIC insured (NCUSIF insured if a credit union) so that your money will be safe should the business fail. You may discover that it's challenging to find a qualifying bank in your locale.
Option #3 will require comparison shopping for the best second chance checking account. Second chance checking accounts are designed for people who are blacklisted in the Chexsystems and therefore, do not qualify for conventional bank accounts. Typically, these people have bad or poor credit hence these accounts are also referred to as bad credit checking accounts. 2nd chance bank accounts provide most of the privileges offered by a regular checking account such as direct deposit, online bill payment, and a debit card. The biggest disadvantage of second chance accounts is the fees. However, you may find that online banks can offer more reasonable fees so make sure to shop around and definitely verify that they are FDIC insured.
When you have been written up in Chexsystems, your banking options become limited. Finding good non Chexsystems banks will not be easy so it's good to know that you have another option in a second chance checking account.