It is about time that some banks are sitting up and taking notice of what customers actually need. I’m talking about second chance checking account banks – those banks that offer checking accounts to people whose names appear in Chexsystems.
The invention of non-Chexsystems banks is ingenious. Probably some marketing wizard in the back room of some small bank somewhere thought it up. Anyway, regardless of where it came from, it is a godsend.
Why I Never Liked Chexsystems Banks
Chexsystems is essentially a huge database that allows banks to share information with each other about “problem” customers. It is a bit like an early warning system that geologists use to predict earthquakes, and about as sophisticated. For example, it does not feature an actual scoring system for evaluating just how much of a risk someone is: your name just appears there or it does not. (This is very different than the FICO system which has a sliding-scale credit score).
The reason I never liked Chexsystems banks is this: if a checking account applicant’s name shows up in the database, there is no way that person can explain their way out of it. Basically, if your name is there, you are not getting an account, period. (Again, very different than the FICO score that lenders use, which at least allows you some negotiating room).
Why Rejection By Chexsystems Is So Unpleasant
This “banking risk database” is a pretty good deal for banks, but some customers lose out big time. Why? Because most of the people whose names show up in Chexsystems are perfectly responsible, upstanding people with a solid banking history.
It is to those people who have not been able to get a checking account of their own that I wholeheartedly recommend looking into second chance checking.
How Second Chance Checking Works
Second chance checking banks are those that have agreed not to ever refer to Chexsystems when considering a new checking account application. These banks refuse to refer to Chexsystems, so even if your name is listed there, your application never be denied for that reason.
3 Steps To Your Own Second Chance Checking Account
So, if you are looking for banks with no Chexsystems checks, you just have to follow these 3 steps:
1. Make a list: As with any major decision, it is always smart to start with a list of candidates. Start by conducting an online search for second chance checking banks and visit the websites of at least five of them.
2. Get the facts: Write down the important details about each bank, such as FDIC insurance coverage, overdraft fee policy, and availability of ATMs in your area.
3. Do not ignore your gut when deciding: Even when the facts stack up in favor of a particular bank, before making your choice do a final “gut check” to make sure you like the way they make you feel. Remember, each bank has its own personality.
Finding a non-Chexsystems bank is a piece of cake. Once you do, you are essentially guaranteed a new checking account.
By kordi_vahle from Pixabay