Banks That Don’t Use ChexSystems
Last year I had a problem. I went down to the local bank and tried to open a new checking account. Unfortunately, I found that it was impossible to open the bank account. I was told by the teller that my name was listed in the ChexSystems records and I was not a suitable client for the bank at this time.
This shocked me. I had never, ever heard of ChexSystems before and was completely unaware that this organization could prevent me from opening up a new checking account. In fact, I was in a bit of a pickle because due to an overdraft that I could not pay, my previous banking account with another bank was suspended. I was out of a bank account. This was scary because, as I found out, I could not even open up a new checking account with a completely different bank. The reason? When my first bank account was shut down, information was forwarded to ChexSystems; all major banking institutions, I found out, look at this list before giving a new client a checking account.
So what did I do? I spend a good two months looking for banks that do not use ChexSystems. The bad news was that there were not very many of them. In fact, I found no major banks like CitiBank or Bank of America that offered checking accounts to people with bad credit. I did finally find a local credit union that was not partnered with ChexSystems. I now have a checking account again, but for a good couple months it was a scary situations. I'm a construction worker and was unable to cash my work checks for a solid two months. You don't want to be in the same position that I was in.
Here are the three options for getting around this problem that I've found:
1. Prepaid credit cards -- Expensive though and not as flexible as a bank account
2. Online Checking Accounts -- Easy to use, just like a regular bank account, you pay more though
3. Banks that don't use ChexSystems -- takes a while to find these
But, as I said, this had a good ending. So if you find you can't open a new checking account because of ChexSystems, I encourage you to look at local financial institutions. Not all banking organizations use ChexSystems, so don't be discouraged if you can't find anything on your first go. Keep looking around and something will turn up eventually.