Over 300 Non Chexsystem Banks

ChexSystems is a service that offers check verification and works in somewhat similar way consumer credit reporting agencies (Experian, TransUnion, Equifax) work. Credit reporting agencies report data based on how consumers use their credit accounts while ChexSystems report data based on how consumers handle bank accounts with financial institutions. ChexSystems is a registered trademark of Delaware based company eFunds Corporation which was previously owned by Chex Systems, Inc.

Non Chexsystem Banks

U.S. banking institutions and credit unions follow a standard practice of reporting certain accounts to ChexSystems in an attempt to protect them or other financial institutions in the future. Accounts that are reported to ChexSystems can be reported for several reasons such as account closed for cause, unpaid overdraft or other automated transactions, abuse, frauds, etc.

About 80% of the financial institutions in the U.S. rely on ChexSystems reports and they will not open any account for anyone having negative data on ChexSystems reporting agency. If your account was closed for some reason which was beyond your control, you surely need a second chance banking. However, your only option is to open an account with a non chex system bank.

Second Chance Banking

ChexSystems is used at over 80% banks and financial institutions on the United States. According to eFunds, trademark owner for ChexSystems, their service is used at over 9,000 banks which include over 100,000 branch locations across the country. So if you have a bad credit or had your account closed by some other bank, it is difficult for you to open an account with majority of the banks in the country.

Bad credit banking can be difficult but not impossible. All you have to do is to find a bank that doesn't use ChexSystems service and you will be able to open a bank account there. To find over 300 non chex system banks nationwide, visit the site below.

Bad Credit Banking

Usually most people don't even know about ChexSystems and that their credit info were placed on ChexSystems database until they try to open a checking account and get turned down. Often consumers are at fault but there are times where unsuspecting consumers get placed on ChexSystems database because they wrote one or two bounce checks without knowing. Below are some tips that everyone should follow to stay out of ChexSystems database:

* Don't write checks without having money in the account to cover them.
* Find out from the bank or credit union how long it takes for deposits to be credited to your account.
* Keep track of your balance and reconcile your checkbook with the bank's statement as soon as you receive it, or go online and check it.
* Before closing a checking account, make sure all checks have cleared, all automatic debits have stopped and you have paid all fees.