| Chex Systems is a service that most banks use to | | | | Here are four tips for finding a no Chex Systems |
| determine whether a new checking account application | | | | checking account: |
| should be accepted or rejected. Created by a | | | | 1. Find an online bank - or at least a bank that has a |
| company called eFunds, Chex Systems is a bit like the | | | | strong online presence. Online banking is the future of |
| FICO scoring system used to measure a person's | | | | banking, and in-person visits to banks are becoming |
| credit-worthiness for new loans. Except - unlike with | | | | less and less necessary for most personal banking |
| FICO scores - Chex Systems is not actually a score. | | | | transactions. |
| Rather, just being mentioned on this banking | | | | 2. Make sure the bank you find is connected to an |
| risk-oriented database is enough for a prospective | | | | extensive ATM network. You should be able to |
| new bank to flat out reject your checking account | | | | withdraw your money from any major ATM in the |
| application. | | | | country without paying a fee to your own bank. |
| Getting rejected is bad news, of course, because if | | | | 3. Choose a bank that is FDIC-insured. FDIC stands for |
| you are rejected by one bank, chances are others will | | | | Federal Deposit Insurance Corporation. Since 1933, this |
| do the same thing. You could easily be rejected by | | | | type of insurance has covered all personal banking |
| every bank you approach for a new checking | | | | deposits up to a certain amount (e.g., $250,000). By |
| account. Nobody wants to put themselves through this | | | | choosing this type of insurance, you can rest assured |
| type of shame and discomfort. | | | | that you will always be able to reclaim your money, |
| How can you get into this system in the first place? | | | | even if your bank were to fold or go out of business. |
| Your name can show up in Chex Systems for a | | | | 4. Bonus: find a bank that does not charge overdraft |
| number of reasons, including for having abused your | | | | fees. Almost all banks nowadays have overdraft |
| debit card, having committed a fraud against a bank, or | | | | protection programs, meaning they will cover a |
| if you still you owe your bank money for an overdraft | | | | payment for which you have made a charge when |
| that they covered for you in the past. | | | | there are insufficient funds in your bank account. |
| Trying to get removed from Chex Systems is not | | | | However, the upshot is that they also charge you a |
| easy, either. Unless there has been some sort of error | | | | hefty fee of $25 to $35 for the privilege. A few of |
| whereby something you never actually did was | | | | these per month can really add up - and they can |
| mistakenly attributed to your name in the system, often | | | | even charge you $35 for overdrawing by just a few |
| only time itself can get you safely removed. But, that | | | | dollars. In response to growing consumer resentment |
| could take years, and you need a new checking | | | | over this trend, some banks are now offering no |
| account now. | | | | overdraft fee checking. |
| The good news is that there is an alternative to getting | | | | If you are looking for a new checking account, having |
| rejected by more banks or to waiting years to get | | | | been reported to Chex Systems can really cramp |
| removed from Chex Systems: finding a bank that | | | | your style. Instead of just giving up and going without a |
| offers a no Chex Systems checking account. These | | | | checking account, instead try a no Chex Systems |
| banks do not refer to this credit system when | | | | account and increase your chances of getting |
| considering you for a new account. Yes, they're out | | | | approved tremendously. |
| there and it will benefit you to find them. | | | | |