Non-Chex Systems Banks - Introducing Second Chance Checking

by Larry Donaldson

Banking shouldn't be a mystery, but for most of us, it is. Locating a good bank, applying, getting approved, and using a bank on a daily basis should be a piece of cake, right? Unfortunately, the reality of banking today is far from being easy for most people.

More Complicated than It Needs to Be

In theory, banking is a pretty simple concept. You have some money or you get paid and you want somewhere to keep it safe and sound. You need to be able to access your money when you need it, either in the form of paying bills, making charges, or withdrawing cash directly from your account. And, you don't mind earning some interest on your balance.


The reality is quite different. It can be hard to get your checking account application accepted. Even when you do successfully open an account, you have to put up with overdraft fees, checking account fees, cancelled check viewing fees - you name it. Sometimes, it can feel like the bank is not really your friend at all. Which means that, for most people, the relationship they have with their bank is a love-hate relationship.

Reason it Got This Way

If you are wondering about the reason things have gotten this way, you will need to look to a number of important trends that have hit the banking industry over the past few years, including:

* overdraft protection programs: This is a wonderful idea, but in reality it ends up costing many bank customers more than it saves them due to the effect of overdraft fees.

* debit cards: These cards allow you to make charges against your account even when your balance is near zero or in the negative. Combined with overdraft protection, failing to use your debit card with the highest degree of caution can cost you hundreds per month in overdraft fees.

* Chex Systems: This is a database that most banks use to report current or past customers who in the bank's eyes represent a risk. And, about 90% of banks refer to Chex Systems when evaluating a new checking account application.

If your checking account applications have been rejected recently, it is likely that your name has been reported to this database.

That First Step is a Doozy: Difficulty Getting Approved

If you have been reported to Chex Systems, you will have a very slim chance of getting your checking account application approved by any bank that uses Chex Systems. And not being able to get approved for a checking account by one or more banks is not only frustrating, it is a bit humiliating. Basically, without a checking account, your entire financial life is put on hold.

About Non-Chex Systems Banks

Fortunately, there are a handful of banks out there who do not use Chex Systems at all. These banks call themselves "second chance checking" banks. As the name implies, they are happy to offer checking accounts to anyone, even people who been reported to Chex Systems in the past.

Second chance checking banks offer all of the same perks and benefits of other banks.

How to Find a Second Chance Checking Bank

To find a second chance checking bank that does not use Chex Systems, follow these steps:

1. Create a spreadsheet or list on paper to record your candidate non-Chex Systems banks.

2. Make a checklist for each bank. For each bank you evaluate find out whether it is FDIC-insured. Look into their fee structures. For example, will they charge you a monthly checking fee? Do they have an overdraft protection program? Are they offering any promotions right now that would give you incentive to open an account?

3. Choose the best bank and apply.

Once you have decided that Chex Systems is the reason you are not getting approved for a new checking account, look for a list of second chance checking banks, choose the best one, and apply.


For a FREE list of non-Chex Systems banks near you, visit: http://www.Checking-for-Everybody.info/.

Article Source: http://EzineArticles.com/?expert=Larry_Donaldson





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