Non ChexSystems Banks
Let’s start this article off by gaining an understanding of what ChexSystems is and is not (I’ve got some free lists a little farther down for those of you who can’t wait). Most people know what the credit rating companies do. They make sure that you are paying off all of your debts on time. If you don’t, then they lower your credit score making it more difficult to obtain more credit in the future. Instead of monitoring your credit, ChexSystems monitors your bank accounts. If you mishandle your bank account, then this system will lower your score.
Technically the Chex system doesn’t actually keep a score like the credit companies do. Instead this system keeps a long list of any poor banking behavior. Some items that may be included on this list include overdrawing (non-sufficient funds), depositing fake checks, and just about any item that would cause damage to the bank that trusted you. Here’s an example of what a report looks like: https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/SampleChexCnsrRpt.pdf
If you have a negative item reported on your individual account, chances are a bank that uses these reports will not open a new account for you. So you have two options: (1) Find banks that do not use chexystems or (2) work towards chexsystems removal.
Banks That Don’t Use ChexSystems
There are some ineffective ways of finding banks that will open up an account for you. Many people like to look through long lists of banks that don’t use Chex. These lists are almost always outdated as banks are constantly changing. However, they can be a good place to start getting some ideas. I think there are better ways to get your bank account opened and I’ll list them below. But for your convenience here are some sites that provide you with massive lists of banks that don’t use ChexSystems:
http://chexsys.tripod.com/goodbanks.html
http://www.chexaccount.com/free-list-of-non-chexsystems-banks/
These are free lists. Note that there are also lists out there that cost you money. These lists are just getting their information from the free lists. In my opinion these lists provide very little value.
Okay, now that you’ve hopefully rid yourself of the idea that you need some sort of massive list of banks to get a new account, let’s move on to something more effective.
Idea #1 Call Your Local Banks
Call some of the banks in your area and ask if they have second chance checking accounts. If they do, then you’re in. I like this idea because you don’t have to share your private information online.
Idea #2 Think About the Prepaid Options
These accounts are a great option for people dealing with chex problems. The idea is that you get a prepaid debit card that works like a checking account. You direct deposit your money into this account and you can spend it using the card. These cards come from very trusted names like Visa and MasterCard, you can’t overdraw them ever, and best of all when you are applying they don’t look at Chexsystems. You can find out more at accountnow.com.
Idea #3 Avoid Websites Asking For Your Personal Information
If you find yourself on this website, you're likely in the wrong place--unless you like giving out your information to strangers.
A common ploy (which isn’t illegal, but is borderline unethical) is for a company or individual to set up a website that uses wording that makes you believe they are a bank. For example, during my research I’ve run across two sites that appear to do this: newbankaccount.net and badcreditinc.com. These sites aren’t complete scams, but they are pretty close to it. These sites gather your information and sell it off to hundreds of banks and other corporations who hope to make money off of you. Expect to get a lot of spam mail if you choose this route (not to mention you really risk identity theft because obviously these individuals aren’t taking great care of your personal information).
I will be giving larger reviews of these two websites in the future, but needless to say, I would steer clear of giving your information to these sites or any like them. Make sure it is a trusted bank before you apply. Make sure you talk to an individual on the phone. Never give out your personal information to this type of website.
Idea #4 Try Some Big Name Banks That Offer Second Chance Accounts
There are some large, reputable banks out there that offer a second chance checking account, no ChexSystems report needed. Here are two that I’ve found in my research:
BBVA Compass: This is one of the 20 largest banks in the United States. You can trust them. Here is the link to their second chance accounts: http://www.bbvacompass.com/sitemap/second-chance-checking.cfm
Wells Fargo: This is a reputable bank and it offers second chance checking accounts (they call them opportunity accounts). I would be surprised if you don’t have a Wells Fargo near you: Here’s the link to their “opportunity accounts”: https://www.wellsfargo.com/jump/checking/opportunity
In summary, if you really need a non ChexSystem bank you can find them. The lists out there are pretty spotty to say the least. I would never recommend buying one of these lists. In addition stay away from websites that are asking for your information (they are selling it to third parties). My recommendation would be to go with a prepaid debit card, find a local bank that offers second chance accounts, or go with one of the mega-banks that I recommended above.
