| Banking shouldn't be a mystery, but for most of us, it is. | | | | banks refer to Chex Systems when evaluating a new |
| Locating a good bank, applying, getting approved, and | | | | checking account application. |
| using a bank on a daily basis should be a piece of | | | | If your checking account applications have been |
| cake, right? Unfortunately, the reality of banking today | | | | rejected recently, it is likely that your name has been |
| is far from being easy for most people. | | | | reported to this database. |
| More Complicated than It Needs to Be | | | | That First Step is a Doozy: Difficulty Getting Approved |
| In theory, banking is a pretty simple concept. You have | | | | If you have been reported to Chex Systems, you will |
| some money or you get paid and you want | | | | have a very slim chance of getting your checking |
| somewhere to keep it safe and sound. You need to | | | | account application approved by any bank that uses |
| be able to access your money when you need it, | | | | Chex Systems. And not being able to get approved |
| either in the form of paying bills, making charges, or | | | | for a checking account by one or more banks is not |
| withdrawing cash directly from your account. And, you | | | | only frustrating, it is a bit humiliating. Basically, without a |
| don't mind earning some interest on your balance. | | | | checking account, your entire financial life is put on hold. |
| The reality is quite different. It can be hard to get your | | | | About Non-Chex Systems Banks |
| checking account application accepted. Even when | | | | Fortunately, there are a handful of banks out there |
| you do successfully open an account, you have to put | | | | who do not use Chex Systems at all. These banks call |
| up with overdraft fees, checking account fees, | | | | themselves "second chance checking" banks. As the |
| cancelled check viewing fees - you name it. | | | | name implies, they are happy to offer checking |
| Sometimes, it can feel like the bank is not really your | | | | accounts to anyone, even people who been reported |
| friend at all. Which means that, for most people, the | | | | to Chex Systems in the past. |
| relationship they have with their bank is a love-hate | | | | Second chance checking banks offer all of the same |
| relationship. | | | | perks and benefits of other banks. |
| Reason it Got This Way | | | | How to Find a Second Chance Checking Bank |
| If you are wondering about the reason things have | | | | To find a second chance checking bank that does not |
| gotten this way, you will need to look to a number of | | | | use Chex Systems, follow these steps: |
| important trends that have hit the banking industry over | | | | 1. Create a spreadsheet or list on paper to record your |
| the past few years, including: | | | | candidate non-Chex Systems banks. |
| * overdraft protection programs: This is a wonderful | | | | 2. Make a checklist for each bank. For each bank you |
| idea, but in reality it ends up costing many bank | | | | evaluate find out whether it is FDIC-insured. Look into |
| customers more than it saves them due to the effect | | | | their fee structures. For example, will they charge you |
| of overdraft fees. | | | | a monthly checking fee? Do they have an overdraft |
| * debit cards: These cards allow you to make charges | | | | protection program? Are they offering any promotions |
| against your account even when your balance is near | | | | right now that would give you incentive to open an |
| zero or in the negative. Combined with overdraft | | | | account? |
| protection, failing to use your debit card with the | | | | 3. Choose the best bank and apply. |
| highest degree of caution can cost you hundreds per | | | | Once you have decided that Chex Systems is the |
| month in overdraft fees. | | | | reason you are not getting approved for a new |
| * Chex Systems: This is a database that most banks | | | | checking account, look for a list of second chance |
| use to report current or past customers who in the | | | | checking banks, choose the best one, and apply. |
| bank's eyes represent a risk. And, about 90% of | | | | |