If you have found yourself on the receiving end of the ChexSystems database, then you are probably looking for an alternative. Banks and financial institutions that use ChexSystems account for over 80% of U.S. banks and credit unions. This can be a problem for individuals who have been blacklisted for 5 years through ChexSystems.
However, if 80% of banks use ChexSystems, then that means approximately 20% do not. For individuals who have been reported on ChexSystems, these institutions are for them. Often, banks that do not require ChexSystems clearance specifically target customers who have a troubled banking past.
When looking for a financial institution that does not require a credit check, it is important to research the options. While one would hope that these “Last Chance Checking” accounts are legitimate, there are plenty of people in the world who are hoping to make money off of someone else’s misfortune. Use the following criteria to determine if the Non-ChexSystems bank is a good match.
1. Validate Fees – While most banks may charge a service fee for ATMs or a fee if an account does not maintain a minimum balance, banks do not charge for things like teller visits, phone calls, and ATM cards. If the bank you are considering has a large number of miscellaneous charges, keep looking.
2. Bank Building – Although it may seem silly, going with a bank that has a true physical bank building is a safer bet. If a bank is strictly “online,” it could be suspect. It is perfectly fine to have a bank with a building and an online component. But be wary if they bill themselves as completely internet based.
3. FDIC Insured – Always protect yourself by making sure that the bank is FDIC insured up to $250,000. This protects the customer in the event that the bank goes under. It ensures that you will get the amount that was in your account provided to you as long as the amount in the account did not exceed their limit. No FDIC insurance, no guarantee.
4. NCUSIF Insured – This is the credit union version of the FDIC insurance. If you go to a credit union and it is not an NCUSIF member, keep looking. You should always make sure that your money is insured.
5. Background History – Just because a building says it is a bank, does not mean that it truly is. Do some research on the banks or credit unions that you are interested in. Make sure that if it has an online component, that it is a corporation and not an individual. Validate the phone numbers and fax numbers by making phone calls and testing a fax. Although it may seem like you are going overboard, you want to protect yourself as much as possible. People are not always honest.
Overall, if you are in need of a bank that does not require ChexSystems to open an account, you can find one. Just do some homework before selecting one. By protecting yourself, you are ensuring that you will be able to get an account with a member bank in the future.
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