No Credit Check Bank Account

Chexsystem – How to Avoid Them and Get Back on Track!

admin — Fri, 22 Oct 2010 23:57:01 +0000

Chexsystem – How to Avoid Them and Get Back on Track!

We’ve all been there: An unexpected bill, car repair or maybe you just didn’t realize that something had already left your bank account. It doesn’t take much to end up with NSF fees stacking up in your account! With almost half of today’s workforce struggling to live paycheck to paycheck, it is a situation that has become all too common. In fact according to a study by Bretton Woods Inc. the average family with a checking account in the US today pays out over $360 per year just in NSF fees. While you may be worried that all those fees may leave you with an empty account, or worse bad credit, there is in fact something much more unfavorable that could happen: Chexsystems.

In theory the Chexsystems idea is sound. Keeping track of people who owe money to banks preventing them from committing fraud makes sense. But unlike a credit reporting agency they do not keep track of the good and the bad, only the bad. You could have been a customer with the same bank for 30 or 40 years with an excellent credit rating, but one mistake could get your account closed and your name blacklisted preventing you from opening another account for the full five years Chexsystems keeps your file. With over 80% of US banks and credit unions using Chexsystems it’s getting much harder to get a bad credit bank account or ’second chance checking account’.

If that’s the situation in which you find yourself, do not despair, all is not lost! There are ways of getting around a bad Chexsystems report. Now I’m not advising you to run out and commit fraud, but for many why should one simple mistake deny you the chance for a checking account? There are couple of options open to you: First you have to ask the question, ‘Do I really need a checking account?’ If you need someplace to deposit your paycheck and pay bills there are plenty of companies out there offering pre-paid debit/credit cards. Your paycheck is deposited straight to the card, which you then use to pay bills. Although if you do want to have your own account there are a few banks out there which do offer second chance checking accounts.

At the time of this article RBC Centura opens new accounts based solely on your Equifax score and do not consult Chexsystems. USAA and Carolina First Bank use Chexsystems but are willing to forgive one or two bad marks. Frost National Bank and Bank of America will allow you to open a new checking account so long as you can provide them with a letter from your former bank saying that the debt owed has been paid in full. (Be aware bank policies do change, so please check with your local branch.)

You may want to consider alternative bank accounts such as the Second Chance Bank Account which will guarantee you a checking account if your name is in chexsystems.

So whatever your situation, there is hope: A second chance checking account or pre-paid cards can help you start to rebuild your credit rating today and give you hope for a brighter tomorrow.

ChexSystems Basics

admin — Tue, 20 Jul 2010 02:44:17 +0000

Most banks use the ChexSystems in order to determine the level of risk for a client who wants to open a new banking account. The system is a considered an eFunds check verification service. When a client goes to open a new account, the bank representative will take the information of the client (social security number) and run their consumer credit report from the three main agencies; TransUnion, Experian and Equifax. Most bank accounts do not go directly off of credit scores when determining if they should approve a client’s application. In fact, most banks threw away this method after the recession (since most people have bad credit), it wouldn’t make the banks any money to discriminate in this matter. Instead, they check to see if clients owe any money with other banks (most of the time, default bank accounts were caused by overdraft fees which were not paid off in a timely fashion).

Over 80% of banks all over the world use the ChexSystems in order to accept or decline a client’s savings account application. (The same thing goes for other types of bank accounts such as Checkings and Student accounts). The other 20% are FDIC assured, but do not use the system to determine eligibility for a new account. This small minority of banks usually rely on other financial information. The exception being small type banks and special banks that offer Second Chance Bank Accounts. An average of 9,000 banks use the system with over 100,000 private branches also using it.

The system also offers their own products and services such as; Fraud Finder, ProspectChex and Transaction Monitoring. Some of the other things that banks look for in the system check when opening new accounts is banking irregularities, overdraft fees, fraudulent checks and unsatisfied balances. When this shows up on the background check, the bank representative will deny the client a new bank account. The consumer reporting agency is governed by the Fair Credit Reporting Act. Consumers have the right and the ability to receive a free system check report each year. They can also dispute items on their report, which is a good idea since the amount of identity theft has increased over the past couple of years.

Some people criticize the bank system check as being unethical and participating in unfair reporting practices. This is because the bank system check does not report the positives of the client’s bank account history; only the negative. It also does not provide the bank or the consumer with a risk analysis score such as with a FICO score (or credit score). Because of this, millions of people have been denied new bank accounts.

Some banks have been responding to the negative criticism by not using the bank system check for opening new accounts. Instead of using the system, the staff is being trained to make their own judgment and setting minimum limits to activating the system. Bank reps are also being trained to override the denial of a new bank account to a customer based on unfortunate circumstances out of their control, such as illness and job loss.

Now as a final note, there are some solutions if you can’t get a bank account because your name is in ChexSystems databases.

1. Find a bank that doesn’t use ChexSystems
2. Get a Second Chance Bank Account — A bank account designed just for people like you who can’t open a regular bank account because of ChexSystems
3. Use a special Prepaid Visa Card that functions just like a bank account
4. Wait 5 years.

So lets discussion these one by one.

Option 1: There are some banks that don’t use ChexSystems, but it’s hard to find them. The best way is to look at all your local banks and give them a phone call asking if they use ChexSystems. You can, in fact, only obtain this information on the phone.

Option 2: A Second Chance Account is another option. These accounts are internet bank accounts but really function just like a regular account. The cost is literally the cost — you will pay a lot more for one of these bank accounts.

Option 3: One very popular option these days is the use a special prepaid Visa card that works just like a bank account. You basically deposit money onto the card. Once there is money on the card, you can use it wherever you might use a normal visa card. You can make payments and deposits online. The big difference between one of these Visa cards and a normal visa card is you can’t have a negative balance on the card — so don’t think of it as a “credit card” but as a bank account with no overdraft!

Option 4: The final solution is to simply wait five years for your name to be removed from the ChexSystems list. This is not a very appealing choice for most people, since you pretty much need to have a bank account these days to function in modern society.

So if you can’t get a bank account because of ChexSystems, there are some real solutions out there. Non of them are as good as having a regular bank account, but some of them will do a good job as a substitute until you can get your name off ChexSystems.

No Credit Check Bank Account — What to Do!

admin — Wed, 07 Apr 2010 21:12:14 +0000

When you approach a bank to open an account, they will usually run a credit check. If you have poor credit, you are likely to be denied. It can be very difficult for a person with poor credit to open a bank account. How do you get around this problem?

No-credit-check accounts can be an answer to your troubles. Consider opening an account online. Many banks maintain an online-only presence versus bricks-and-mortar banks. These online banks offer a variety of accounts catered to different needs. All you need to do is apply. Once you have completed and submitted your application, it will be reviewed and you stand a good chance of being approved for an account.

Bad credit is a tricky situation. It makes it difficult to get a bank account and credit card, which in turn, are necessary to mend your credit rating. Secured credit cards can help you out of this situation. In order to get a secured credit card associated with your account, online banks will require you to make a deposit. This deposit amount sets your borrowing limit.

Another solution exists to the dilemma faced by poor-credit holders. Several specialized banking institutions offer checking accounts like Second Chance Bank Account to individuals with a damaged credit score. While such specialized accounts are offered mainly by online banks, some bricks-and-mortar banks will also consider your application. Make use of the internet to find out which banks will review your applications. Forms are usually available and can be submitted online. Take the time to research and identify prospective banks for your needs. The rest of the approval process should be fairly swift because it does not require a credit score check.

If you don’t want to open an internet bank account (i.e. a Second Chance Account), you can sometimes find non chexsystems banks that don’t do ChexSystems credit checks. These banks are not common, but they do exist, mostly smaller, credit union type of banks.

No Credit Check Bank Account

admin — Fri, 23 Oct 2009 00:15:00 +0000

Having problems opening up a new bank account because of credit history problems? You need a no credit check bank account. These are special bank accounts that don’t use ChexSystems to determine whether you are qualified to open a bank account or not.

If you have ever had financial problems in the past, you may find it impossible to open a bank account. Banks can submit your information to ChexSystems for something as minor as a few bounced checks. If you owe the bank money in some way but have defaulted on payments, you are assuredly listed in ChexSystems.

If you are in the ChexSystems network, every major bank out there will reject your application to open a new bank account. This can be a nightmare – especially if you need a bank account for work reasons or something important.

The solution is, of course, to seek out a bank that doesn’t use ChexSystems. Now, this may sound easy, but it’s actually not – especially if you don’t do the right things to find one.

If you want to get a good non chex system bank account, you will need to look online. There are special banks that offers something called Second Chance Account. These are accounts tailored specifically for people who are unable to open bank accounts anywhere else.

Now keep in mind that there will be some penalties associated with these type of accounts. You will have to pay more money for these bank accounts and you will also need to prove to the bank that you can be trusted with cashing checks.

However, there are many advantages to these types of bank accounts – and the advantages far outweigh the disadvantages. You have access to all the normal bank functions you are used to and you can also use a second chance bank account to help qualify for a normal bank account.

Basically, if you have bad banking history, you really don’t have any other choice but to get a second chance bank account – other than to hunt down a physical bank that’s not on the ChexSystems network. There are still a few smaller banks out there, but the number is dwindling. You can of course opt to wait 5 years for your name to be dropped from the ChexSystems database – but few people can afford to wait so long without having a bank account.

The other option, besides a 2nd chance checking account, is to look for no credit check bank accounts with banks that don’t use ChexSystems. These are sometimes called non chexsystems banks and tend to be smaller, more local sized banks. It can be difficult to find one, however, so you are really going to have to pick up the phone and call your local banks, or do a intensive search online.

Second Chance Account

admin — Fri, 23 Oct 2009 00:05:45 +0000

Having problems opening up a new bank account because of credit history problems? You need a no credit check bank account. One specific no credit check bank account is the Second Chance Account. These are special bank accounts that don’t use ChexSystems to determine whether you are qualified to open a bank account or not.

The solution is, of course, to seek out a bank that doesn’t use ChexSystems. Now, this may sound easy, but it’s actually not – especially if you don’t do the right things to find one.

If you want to get a good non chex system bank account, you will need to look online. There are special banks that offers something called Second Chance Accounts. These are accounts tailored specifically for people who are unable to open bank accounts anywhere else.

Bank Account with No Credit Check

admin — Fri, 23 Oct 2009 00:00:28 +0000

Trying to find a bank account with no credit check? Most banks these days are on the ChexSystem. That means that if you have had any financial problems in the past, you wont’ be able to open a bank account with any major bank branches. Don’t worry if this describes you. You can get around this by finding a bank with no credit check.

So how do you find a bank account without a credit check? Well the truth is that it’s not easy. You can seek out different local banks and try to open a bank account. The problem is that banks don’t advertise, for security reasons, whether they are on or not on the ChexSystem network. You will have to manually look at each individual bank and ask. Pretty much all the major bank branches will use the ChexSystem network.

The other option here is to look online to get a bank account not on the ChexSystem network. There are actually special banks online that specifically cater to people who have problems opening up bank accounts. You can easily find these if you look around online.

Now, a bit about what you can expect if you get a non check system bank account. These accounts come with higher banking fees and possibly a monthly or yearly fee. So the first thing you should know is that you will pay more for this type of bank account. The second thing is that these accounts will often come with some financial restrictions – particularly your ability to cash checks. Some online banks will have a probationary period where you can’t cash checks – this can depend on the actual bank. If you want one specific recommendation, you can look at getting a Second Chance Bank Account which is a no credit check, no chexsystems bank account.

In general, no credit check bank accounts give you access to most of the financial options you are used to when it comes to banking. You can send money, deposit money, and withdraw money. You are even given a bank card with witch to make purchases with. Basically, an online bank account is the same as any other bank account out there – you can do all the same things.

You can also use one of these accounts as reference to get a regular bank account. You may need to have one of these bad credit bank accounts for six months to a year, but you will be virtually guaranteed the ability to get a normal bank account after a certain period of time.

The best way to find a bank account with no credit check is to look around online. Check out different offers from different banks. The more comparison shopping you do, the more likely the chance you can find a good deal and get cheaper banking fees for your no credit check bank account.