Consumers that have had problems with bounced checks, overdrafts, or unpaid fees may need to find non chexsystems banks to open an account. Chexsystems banks are banks that keep track of negative checking account transactions through a company called chexsystems. Before any participating chexsystems banks will open an account for a person, a teller or finance officer will run his or her name through the system. If the prospective account holder shows a chexsystems report, the chexsystems banks will most likely deny the person a new checking account. Even if the individual is planning on making a huge initial deposit, the chexsystems banks will most likely deny the application.
Why Chexsystems Banks are so Picky
Chexsystems banks have to protect the institution from possible loss. If a person has a history of writing a bad check, the bank has no guarantee that he or she will not write one again. If the individual has failed to pay fees to another bank, chexsystems banks will look at this as high risk potential. Therefore, they will usually ask the applicant to pay any unpaid balances that show up in the chexsystems database. The original lending institution may be able to clear the negative items and remove the person from the system.
Length of Negative Chexsystems Banks Record
Negative items in the chexsystems database may remain there for up to 5 years. If the person pays the debt quickly, then it will be removed as soon as possible. If the individual chooses not to settle the balances, the negative transactions may remain on file for the entire 5 years.
Non Chexsystems Banks
One option that a person can take to get approved for a bank account is finding a list of non chexsystems banks. Not all banks use this system for approving a bank account. Non chexsystems banks may use other criteria such as initial deposit amount, or income to approve their applicants. Some non chexsystems banks might not have any requirements. The key to getting approved for a bank account is knowing how many non chexsystems banks exist.
Sifting Through Lists of Non Chexsystms Banks
The number of banking institutions that do not report to chexsystems and do not use chexsystems varies from state to state. Some states only have one location and other states have a long list of non chexsystems banks. In California, 15% of banks do not use chexsystmes. Key West Bank in Florida supposedly does not use chexsystems. The bank of Nashville in Tennessee is also on the list of non chexsystems banks. There are more banks that use chexsystems that do not. However, a prospective account holder can feel confident that many banks are still not using this system.
Finding lists of non chexsystems banks takes thorough research and patience. Anyone who has had trouble in the past can find a bank that is willing to take a chance. Non chexsystems banks believe that people should get a second chance because they are human. A person who bounces a check may have miscalculated the available balance. A person who refuses to pay a fee may feel that he or she is justified in not paying. Since chexsystems banks leave no room for error, non chexsystems banks are around to pick up the slack.