Getting approved for a new checking account if you’re listed on Chexsystems is difficult. You see, this service called Chexsystems is what some banks and financial institutions use to find out whether a new customer is financially reliable or not. If you have a bad record in your previous bank and your credit score is low, your application for a checking account with a certain bank could result in disapproval. Looking for a non-Chexsystems bank institution is one way that some users find banks to open a checking account with.

To find out how to avoid getting rejected by a bank that may be using Chexsystems, you need to understand what this system is and how it works. Chexsystems is what’s making your life harder than it should be.
Fundamentally, Chexsystems is just a database and a simple reporting system that provides information to banks about the financial history of a person. Not all banks use this system. But if the bank you want to set up a checking account with uses Chexsystems, it’s possible that they will know about your bad financial history as soon as you apply and reject your application. Chexsystems allows sharing of data amongst other banks regarding past customers, particularly those with bad credit history and overdrafted accounts.

Your name will only get into Chexsystems if you have a history of bad financial decisions and the banks think you’re a credit risk. This means you owe money to more than one financial institution, or you have overdrafted your checking account with one bank several times. You might also owe a bank money if you have incurred more charges that the bank covered on your behalf. What you must remember is that once your name is in Chexsystems, it stays there for five years. This is very hard to get it removed.

For this reason, your goal must be to find a bank that does not use the Chexsystems service. There are banks that don’t look at Chexsystems lists when considering a new application for a checking account. If you are in the market for a bank that does not use Chexsystems, here are three recommendations for you…

1. Look for a bank that offers second chance checking accounts. This is an easy way to get approved if you don’t have a chance of getting approved elsewhere. A second chance checking account will allow individuals or business entities with bad credit history to start afresh with a new checking account.

2. Make sure the bank is FDIC-insured. Even if you are desperate to find a non-Chexsystems bank, you should always check if the bank you find is insured with the FDIC. Risking your money on a bank that is not FDIC insured is a big mistake and you might end up regretting your decision in the long run.

3. Check if the bank has an online banking service. Online banking is a great way to do business without hassle and without wasting gas money to go to the bank.