People looking for a list of banks that do not use ChexSystems come from all walks of life. In most cases they have been in bad situations and they’ve had checks bounce. The banks that they held their accounts with decided to close those accounts and report the incidents to Chexsystems. So those financial problems that you’ve had in the past can potentially follow you for years. This is because ChexSystems is a company that maintains a database of all the “bad” banking clients. Since most banks do a ChexSystems check on all new bank applicants, if your name is in the system, you won’t be able to qualify for a new account.

This is what prompts most people to get online and start looking for “banks without Chexsystems“. They look because it’s common knowledge that only about 80% of the banks out there do business with ChexSystems. That leaves a big 20% of banks out there that are open to the possibility of opening a checking account for you even if you have a negative record. Depending on the bank, those accounts are called “fresh start checking accounts” or “second chance checking accounts” but they basically offer the same thing: you get to open a bank account even if you’ve had financial problems, or you have bad credit, or something similar.

You’ll find that there are lots and lots of places that promise to get you a list of banks that don’t use ChexSystems. The problem is that a lot of them are really not about to give you the exact information that you’re really looking for. But at first, let’s give this a little more thought.

ChexSystems makes its money by charging financial institutions to use its service. That means that the more banks use them, the more money they’ll make. So they’re pretty aggressive in terms of marketing their service to banks that don’t currently use them to verify new checking accounts. Conversely, some banks have realized that they lose business by simply turning down everyone with a negative ChexSystems record, and they don’t necessarily want to keep doing that. What that boils down to is that there’s a constant movement of banks signing up for ChexSystems’ service and others that are leaving it.

When you think of the number of banks that there are in the United States (close to 8,500), getting a list of banks that don’t use Chexsystems would be a colossal amount of work in the first place. And that’s only the beginning, because such a list would have to be maintained continuously in order to be accurate. That would necessitate a sizable staff and that list would probably be just too expensive to be attractive to anyone looking for a non ChexSystems bank.

So what’s left for you to do? Well there are companies that are well known for offering “second chance checking” products and services. Three of them come to mind, but there are many more.

People’s Cash Solutions: “Second Chance Checking Accounts”

People’s Cash Solutions refers to their product as a “fresh start at banking”. Here’s what their website has to say:

Have you ever been denied a checking or savings account due to past problems with ChexSystems and TeleCheck? The Peoples Cash Solutions program is the answer for you! Peoples Cash Solutions and Peoples Bank will open a real FDIC-insured checking account for you even if you have been reported to ChexSystems or TeleCheck in the past (except where fraudulent activity has been reported). We want to give you a chance to establish a banking relationship as the first step toward improving your credit record and to allow you to begin building and accumulating assets. Our Second Chance Checking program erases the inconvenience of not having a checking account and/or being forced to use fee-intensive alternatives.

Money Now Usa: “100% Approval, No Credit Checks Prepaid Debit Cards”

Money Now Usa flaunts their wide selection of prepaid debit cards with 100% guaranteed approval. You get to choose from a list of well-known companies that offer their debit cards with no credit checks and no Chexsystems verifications. There’s a small list of features and benefits next to each offering to help you decide which is best for you.

Ready Debit: “100% Approval Guaranteed Reloadable Prepaid Debit Cards”

Once again, I’ll let the company’s website do the talking:

100% Approval Guaranteed — Even if you’ve been turned away or rejected by banks you can still get a READYdebit card. We have no credit or Chexsystems checks to worry about. Our only requirement is that we can validate the information you provide to us when you open your account. We do this instantly online while your application is being completed to make the sign-up process fast and easy!

“Can I Get A List Of Banks That Don’t Use ChexSystems?”

One of the reasons why I started this website is that I have been meeting with a lot of people who insist that being able to open a checking account once you’ve been reported to Chexsystems is the closest thing there is to mission impossible, whether it be finding a local non-Chexsystems bank or an online bank that doesn’t use the Chexsystems reporting information to open new checking accounts. It’s easy to understand why so many people people would believe that, since the “big” banks typically will not do business with you once you’ve been reported. You’re left with the only option of looking for other, smaller banks, and the information is not readily available. And let’s not forget scammers who will try and sell you outdated lists, that will do nothing to help you in your predicament.

It certainly is frustrating to look for weeks and weeks and just keep getting turned down, so at that point you start thinking that you’re probably fighting a losing battle. You think that you may just have to deal with it and settle for those awkward “solutions” that are touted as alternatives for people who can’t open checking accounts because of Chexsystems. To be totally honest, finding a non-Chexsystems bank is not the easiest thing, but with some useful information in hand, you can already start narrowing down your search and be more productive. In order to improve your chances of success when negotiating with banks, order your chexsystems report to see what information is in it and try and resolve any issues first.

The first thing you need to know is that you should definitely not expect any bank to openly advertise which reporting system they use (if any). If they did, they would be just opening a can of worms. They would be swamped with new people who want to open checking accounts, but they would have to sit there and sort through hundreds, if not thousands, of applications to handpick the ones that look promising. It’s just not cost-effective. What you can do, though, is take your yellow pages and start calling and asking. The trick here is to ask for the branch manager or someone in the branch who ranks high enough to give you the information that you’re looking for. Also, if you can, try to sweeten the deal. If you have a little bit of savings that you an open a CD with, mention it. Stuff like that will make you look more appealing as a customer and they’ll probably be more inclined to cut you a deal.

Of course, whichever banks that do not use Chexsystems that you find in your search, and that you’re considering depositing your money in, absolutely has to be an FDIC-insured bank. There’s simply no way around that. If you fail to take this precaution, and the bank happens to go under, you will lose all the money that you deposited there. On the other hand, with an FDIC-insured bank, your money is insured up to $250,000 per account holder (It has been bumped to that level amid the financial crisis and it has been hinted that it might be reverted back to the previous $100,000 once this is all over). Not a bad safety net.

In your search to open a non-Chexsystems checking account, you have to be on the lookout. You will find a lot of information out there and what we recommend is that you gather as much of it as you can. The trick is to avoid getting scammed for large amounts of money. If you find something that looks promising and is reasonably priced, check to see if you can get a money-back guarantee. This will typically protect you. Also, look around, check online banks if brick and mortar ones keep turning you down. Explore every free option before eventually turning to paid ones.

As a final word of advice, when you’re looking for advertisements, favor specific institutions over list sellers. The reason is that if an institution is advertising to people with bad credit or who have been reported to Chexsystems, it’s probably because at that specific moment, they probably have some kind of product or service that caters to this specific niche. Once they decide not to deal with this segment anymore, they will just stop advertising. A list, on the other hand, would have to be continuously updated to account for companies that enter the segment, as well as those leaving it. We’re not saying that it’s not possible to find a good, legitimate list. What we’re saying is that you’ll probably have better luck with the companies that advertise to you than you will with the list sellers.

Finding A Second Chance Checking Account In Your Local Area