Now, imagine you being in a dire need to open a new checking account and the band denies it? You start questioning yourself why would that be and what to do now? Well, if that happened and it wasn’t your obvious fault chances are the bank checked you through the ChexSystems and for some reason you were blacklisted there. Still, it is a reason to panic or be confused as almost 10% of the USA households is ChexSystems-blacklisted as well. But what is it about in the first place?
ChexSystems is similar to how credit agencies monitor your score, loans, etc. in order to check how reliable are you when it comes to paying back the debt. With ChexSystems banks monitor your account activity so if for some reasons they don’t see your checking or saving habits as good they might blacklist you. Still, it doesn’t mean you will not be able to open up a new account as around 20% of the banks across the USA don’t use this monitoring method!
Without further due let’s take a look at your options and what are the benefits of the same!
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What To Do Once Your Account Has Been Declined
Now, first and foremost you have to realize that it isn’t the end of the world if you get refused and that there are more options other than ChexSystems banks. First and foremost your best bet is to ask them for a full report so you can see what can be removed and how you can improve your score. The second and third step would either be going to some of the banks that don’t use ChexSystems or opening a second chance account (we will talk about the difference later).
As mentioned above you can ask for a report every 12 months and try to solve your case that way. First, you should look into it and see if there might be any errors or inaccuracies that you can correct. If you have found those either call the ChexSystems, mail them or fill in an online dispute through their website. On the other hand, if the report is fine then the best bet is to try and make a deal with them – you pay off the owed debts and they remove items that are blacklisting you.
Non-ChexSystems Banks vs Second Chance Accounts
Though these two are very similar as both are your non-ChexSystems options there is a very clear between them–non-ChexSystems banks offer an account to everyone (no limits), while the second chance accounts are instructed for people who already had past banking problems, while on the other hand is extremely rewardable for people with high credit and banking scores. Though with the non-ChexSystems banks you will be only a project of bank’s simple checking without an account limit, the second chance accounts have other limitations such as check writing and ATM deposits.
Best Banks That Don’t Use The ChexSystems
- BBVA Compass. At the top of our list is this offering bank that doesn’t use the blacklisting system but will still check your details through an EWS. Your chances of opening a saving or a checking account are much higher and a minimum deposit is only $25 which is great. Along with that, you aren’t charged monthly maintenance while the monthly service stands at only $13.95. It is convenient and you can pay your bills and make deposits through an online service. Last but not least this bank doesn’t charge the ATM use.
- TD Bank. One of the most popular when it comes to checking, the TD Bank is one of the most successful banks in the USA and Canada. With no daily balance limit and a low $5.99 monthly fee (that is waived if your balance is $100 or more), you are sure to enjoy many benefits of the non-ChexSystems!
- US Bank. For those of you who want to enjoy the benefits of a national bank, the US bank is the right choice and it doesn’t use the blacklisting system either. The monthly fee is completely waived if your balance is more than $1500 and you will be granted a debit card that you can use charge-free at their ATMs. Along with that, paying bills and making mobile deposits online is simple and easy. Overall, a great bank with an excellent checking account options!
The Best Bank For Second Chance Accounts
Though there are many second chance accounts banks like PNC Bank, Woodforest National Bank, and the First National Bank we would absolutely recommend the Wells Fargo one. Being one of the largest it offers great checking and saving options and doesn’t include a lot of limits (unlike some other second chance banks). Check writing is available, and you can make online payments as well. The minimum deposit is $25 and as of the monthly fee it is usually waived if your balance stands at $1500 or more, or if you deposit at least $500 a month.
source: everybuckcounts.com
Summary
Your goal should be to keep your credit and banking scores well off but in some cases, you might not be responsible for being blacklisted and the ChexSystems bank still doesn’t want to waive off the denial of your account. Still, it isn’t the end of the world and you can either open an account in one of the non-ChexSystems banks or go for the second chance accounts option. A bad report shouldn’t be something that will stop you from opening a checking/saving account, and we hope that this article did well to inform you and instruct you on your further actions!
Maja is a talented writer and content editor at TheFrisky, with a diverse range of interests spanning from the arts to gardening and interior design. A graduate of the Faculty of Arts, Maja brings a unique perspective and a passion for creativity to her work.