The sense that you are “on someone’s list” is never a good one. In fact, it can inspire feelings of discomfort, frustration, or even paranoia. After all, who are THEY to place YOU on their list?

There are all types of such lists out there. If you have angered someone you know, work with, or even care about, you can be said to be “on their list.” But, those situations usually come and go fairly quickly. However, there are other, more serious lists you can be on that can be a much longer-term situation. One such list is Chex Systems.

If you have asked yourself recently, “Am I on Chexsystems?,” the best way to find out is to apply for a new checking account. If your application is flatly rejected with no questions asked, you are most likely on Chex Systems.

What is Chex Systems?

Chex Systems is a risk-assessment database that most banks use to evaluate new checking account applications. When you apply for a new account at most banks, they will automatically look to see if your name shows up in this database. If your name does show up there, end of story: you’re not going to get granted an account at that bank.

This system was invented by a company called eFunds years ago. It is designed to be a bank’s best friend by helping them avoid doing business with bank customers whom they deem to be risks for doing business. At the same time, Chex Systems is not a friend to people who are honest folks who may (or may not) have a glitch on their banking record but who just want to get going on a new account.

Why It Is So Hard to Get Removed from this List

Unlike with having a mistake that affects your FICO (credit) score, with this banking risk database you cannot just write them a letter to protest your name showing up there. There is no scoring system: it’s just an “on/off” switch and your name is there or it’s not. Once your name is there, there is no chance of getting it removed by request or protest (unless you are the victim of identity theft, for example).

The Bright Side: You Can Find a Non-Chex Systems Bank

There is a bright side, however: there are a handful of banks that offer second chance checking. These banks will promise to never even check whether your name shows up in the database when evaluating you for a new account: they just avoid this step altogether.

So, if you suspect you are on Chex System’s list, don’t spend any of your valuable time trying to get taken off. Instead, just go out and find a non-Chex Systems bank that offers second chance checking accounts.

Personal banking is one of those things we do that we would prefer to just run itself, as if on auto-pilot. We feel we should not have to be always looking over our shoulder to see whether our bank is playing it straight with us or whether we need to constantly keep watch in order to keep them honest.

Unfortunately, banking life is not that simple. Reason: banks are always trying to find ways to squeeze more profits out of their customers.

If you take the perspective of a bank, you cannot blame them. After all, banks have the right to make money according to the rules of a capitalistic system. And, banks have an incentive to make money, given all of the competition they face. So, why shouldn’t they try?

How Banks Make Their Money

Essentially, banks make money in three ways: from investments, loan interest, and fees. Banks invest the money deposited by their personal banking and business banking customers into ventures that they believe will turn a profit. They also extend loans to businesses and individuals – charging an interest rate for doing so. And, then there are the bank fees.

Bank fees are no small part of banks’ income. In fact, banks in the U.S. alone make well over $30 billion in fees annually. There are a number of types of bank fees, including checking account fees, service fees and overdraft fees.

The Role of Auto Drafts Scams & Overdraft Fees

Given their profitable nature, overdraft fees are a particularly lucrative way for banks to make their money. Basically, an overdraft fee is charged every time a customer tries to write a check, make an online payment, or make  debit or credit charge against an account that has an insufficient balance to cover the charge.

One situation whereby overdrafts can occur is when an auto draft has been set up, taking money out of a bank customer’s checking account each month for the purposes of paying a certain merchant or other service provider. Some bank customers suspect their bank is intentionally manipulating the exact date of the auto draft based upon account balance. The goal would be to increase the chances of an overdraft – resulting in more fees for the bank.

While it is difficult to prove this is going on, it is entirely possible, and there is precedent for this type of deceptive behavior on the part of banks. For example, some banks have admitted to practicing what is termed “transaction stacking,” which means processing pending transactions for a given checking account in the order of highest-to-lowest charge. The goal, again, is to increase the chances of more overdraft fees being incurred.

3 Ways to Avoid Auto Draft Scams

Here are 3 ways to avoid auto draft scams:

1. Always keep at least $100 in your account: One way to avoid your bank’s manipulation of auto drafts just to earn more bank fees is to always keep a padding of $100 to $200 in your account at all times. (Of course, this solution will not help you if the auto draft amount is higher than this.)

2. Check your account balance at least twice per day: Another solution is to spend more time monitoring your account balance, your already-cashed vs. not-yet-cashed checks, and any pending bills or credit card charges. This takes more of your time than you probably want to spend, but at least it will help you stay on top of things.

3. Switch to a no-overdraft-fee bank: Some banks are now instituting no-overdraft-fee policies. These banks will never charge you an overdraft fee – even if you overdraw your account. Consider switching to one of these banks in order to avoid these overdraft problems altogether.

Auto draft scams are just another way for some unscrupulous banks to earn more money off of you and your account. Take action in one or more of these 3 ways in order avoid these scams.

Having bad credit is self-perpetuating: the worse your credit score, the harder it can be to get out of debt, start paying your bills on time and turn your financial life around. Regardless of your credit score, one of the most important building blocks of having a normal, healthy financial life is to have your own checking account.

If you have tried one or more times to get approved for a new checking account but have been rejected, you may believe that your credit score has something to do with your situation: it doesn’t.

The Anatomy of a Bank Account Rejection

In reality, getting your checking account application rejected has nothing to do with your credit, or FICO, score. Rather, the sole purpose in life of your credit score is to determine whether you are eligible for auto, mortgage, or personal loans and what interest you qualify for.

The Real Culprit: Chex Systems

The real culprit in your acceptance or rejection into a new checking account is something called Chex Systems. This is a risk assessment database that banks use to share information with each other about customers or ex-customers whom they deem to be a banking credit risk. Your name can get reported to Chex Systems for any number of reasons, including:

1. You still owe a previous bank with which you did business money for their covering one of your past charges that resulted in an overdraft.
2. You committed some sort of bank fraud – or something that could be easily mistaken for bank fraud
3. You committed or are suspected to have committed check fraud at some point in the past
4. For some other reason, some bank out there thinks you represent a risk

Your Backdoor: Second Chance Checking

Fortunately, if your name has been reported to Chex Systems, you do have another option: opening a second chance checking bank account. These checking accounts are identical in every way to a “regular” checking account, except for the fact that they the bank does not refer to Chex Systems during the application process. Bottom line: even if your name is on Chex Systems, it will not matter at all in terms of whether you will be approved for a new account.

If you want to find bad credit checking accounts with guaranteed approval, read on.

Finding Bad Credit Checking Accounts

To get a bad credit checking account, you need to:

1. Get out a piece of paper and create a list of at least 5-10 second chance checking banks.
2. Review their websites to determine which one looks like a fit for you.
3. Apply, but don’t worry about being declined – even if you have a poor FICO score and/or if your name appears on Chex Systems.

Bad credit checking is actually within reach for most people. Now that you know that your past rejections by banks has nothing at all to do with your credit score, you have a better understanding of how to get an account. Find a second chance checking bank and you are guaranteed approval.

Banks provide us with a very useful service. In the very simplest terms, a bank offers us a safe place to keep and organize our money – and in some cases even let us earn interest on that money. Pretty good deal. But there is a catch, of course: bank fees.

Bank fees are one of the two main ways banks make money. (The other way is by lending out our money to others at a profit). So, it makes sense that banks should charge some fees in order for them to stay in business.

However, sometime during the past couple of decades, bank fees somehow went from being an extra income source for banks to becoming a primary income source. One of the biggest sources of fee-based income for banks is that of overdraft fees. In fact, banks bring in about $30 billion per in overdraft fees in the U.S. alone. That’s pretty big business.

As consumers, it is important that we keep ourselves educated about banking and overdraft rules so that we can avoid paying overdraft fees whenever possible.

Here are 5 points about banking and overdraft rules you should know:

1. Most banks have overdraft protection programs in place. These programs cover charges made to debit cards, credit cards and checks even when the account has a negative balance. They also allow the bank to charge an overdraft fee for this service.

2. The majority of banks with overdraft protection programs automatically enroll new customers in these programs upon new checking account sign-up – often without making it very clear to the new customer exactly how it works.

3. Customers who are enrolled in overdraft protection programs are usually not aware that their bank will approve debit charges made at a merchant even when the account has a negative balance. This can result in the customer paying $100 or more in a single day in overdraft fees.

4. For most banks, there is no limit to the number of overdraft charges you could pay in a single day.

5. A few banks now offer no-overdraft-fee checking, which means they will cover charges to negative-balance accounts – but will still not charge you an overdraft fee.

Keep these rules in mind in order to keep the bank fees you pay to a minimum.

A second chance checking bank is just another name for a bank that will guarantee NOT to refer to the Chex Systems database when considering your application. Sound important? It is – if you have been recently rejected for a new checking account , that is.

You see, the number one reason people get rejected for a new checking account is that their name appears in Chex Systems. This is simply a database that banks use to share information with each other about past customers.

If you have been recently rejected for a new account, it is likely that your name appears on Chex Systems. Your name could be there for any number of reasons. However, apart from the more serious reasons such as bank fraud and the like, most people get reported to Chex Systems if they owe the bank money. For example, this can happen if there are unpaid NSF/overdraft charges that you still owe to a bank.

Banks that offer second chance checking accounts are sorely needed today, given that so many people are getting denied new accounts. If you are looking for such a bank, here are tips on where to look:

1. Look online: Start by looking online. Create or find a list of second chance checking banks in your area.
2. Make a list: Put together a list of at least 3-4 banks before settling on the first one you find. Remember, they’re all 99.9% likely to approve your account request, so focus on learning more about each candidate bank.
3. Choose based on facts and gut feeling: After comparing the facts about each bank on your list, also pay attention to your gut feeling about each one – and choose one!

Banks that offer a second chance checking account can really come in handy if you have been having trouble getting approved for a new checking account. Start your online search right now.

Applying to a bank for a new checking account and then being rejected on a technicality is a frustrating experience. In some cases, the bank will not even tell you the specific reason(s) they rejected your application. But, the answer is clear in 99% of the cases: your has been reported to something called Chex Systems.

There are a great number of inconveniences you will experience when you cannot get approved for a new account. So much of modern life in economically-developed countries revolves around the shopping transaction – given that we live in a consumer-oriented society. Most people who have checking accounts use them to make 3 or more purchases every day: that is 21 transactions per week!

Understanding Chex Systems

If you have been rejected for an account, it is likely that your name has been reported to Chex Systems. This is a risk-reporting database of sorts that banks use to share information with each other about which customers may represent credit risks for banking situations.

It is important to note that Chex Systems has NOTHING to do with the FICO scoring system used to assign a credit score to individuals. Rather, Chex Systems only pertains to banking-related transactions. And, there is no scoring system in Chex Systems: your name appears there or it does not.

What Not Having a Checking Account Can Mean to You

Not having a checking account can be a major inconvenience, which is why you will need to find a bank that will offer you an account quickly. Not having an account means the inability to write checks, conduct online banking, or set up direct deposit from your employer. It also means that you will not be issued a debit card, nor will you have access to ATM machines for quick access to cash.

Second Chance Checking is Your Friend

If you have been rejected for a new checking account, there is a wonderful thing called second chance checking available to you. This term simply refers to banks who approve checking account applications without referring to Chex Systems when considering new applications.

How to Find and Choose Banks that Offer Second Chance Checking Accounts

Here is how to go about getting a second chance checking account:

1. Research at least 3-5 banks that offer second chance checking.
2. Make sure the bank you choose is FDIC-insured.
3. It is preferable if your bank offers an online banking option.
4. Make sure you will be granted access to a nationwide network of ATMs.

If you have been rejected for a new checking account, start with a list of 3-5 banks that offer second chance checking – then compare and choose the best one.

It is about time that some banks are sitting up and taking notice of what customers actually need. I’m talking about second chance checking account banks – those banks that offer checking accounts to people whose names appear in Chexsystems.

The invention of non-Chexsystems banks is ingenious. Probably some marketing wizard in the back room of some small bank somewhere thought it up. Anyway, regardless of where it came from, it is a godsend.

Why I Never Liked Chexsystems Banks

Chexsystems is essentially a huge database that allows banks to share information with each other about “problem” customers. It is a bit like an early warning system that geologists use to predict earthquakes, and about as sophisticated. For example, it does not feature an actual scoring system for evaluating just how much of a risk someone is: your name just appears there or it does not. (This is very different than the FICO system which has a sliding-scale credit score).

The reason I never liked Chexsystems banks is this: if a checking account applicant’s name shows up in the database, there is no way that person can explain their way out of it. Basically, if your name is there, you are not getting an account, period. (Again, very different than the FICO score that lenders use, which at least allows you some negotiating room).

Why Rejection By Chexsystems Is So Unpleasant

This “banking risk database” is a pretty good deal for banks, but some customers lose out big time. Why? Because most of the people whose names show up in Chexsystems are perfectly responsible, upstanding people with a solid banking history.

It is to those people who have not been able to get a checking account of their own that I wholeheartedly recommend looking into second chance checking.

How Second Chance Checking Works

Second chance checking banks are those that have agreed not to ever refer to Chexsystems when considering a new checking account application. These banks refuse to refer to Chexsystems, so even if your name is listed there, your application never be denied for that reason.

3 Steps To Your Own Second Chance Checking Account

So, if you are looking for banks with no Chexsystems checks, you just have to follow these 3 steps:

1. Make a list: As with any major decision, it is always smart to start with a list of candidates. Start by conducting an online search for second chance checking banks and visit the websites of at least five of them.
2. Get the facts: Write down the important details about each bank, such as FDIC insurance coverage, overdraft fee policy, and availability of ATMs in your area.
3. Do not ignore your gut when deciding: Even when the facts stack up in favor of a particular bank, before making your choice do a final “gut check” to make sure you like the way they make you feel. Remember, each bank has its own personality.

Finding a non-Chexsystems bank is a piece of cake. Once you do, you are essentially guaranteed a new checking account.

You may have recently had one or more banks reject your application for a new checking account. And, you may know by now the reason for your application having been rejected: it’s called Chex Systems. Chex Systems has become a dirty word for anybody who has been rejected for a new checking account.

What Chex Systems Is

Chex Systems is a database that works like an early-alert credit risk system for banks and other financial institutions. Unlike the FICO (credit) scoring system we have all come to know (and love?) over the past several decades, the Chex Systems database does not feature a score. Rather, just having your name entered into the database is enough to get your checking account application rejected, no questions asked. Talk about lack of a chance to explain yourself!

How Your Name Got Reported To Chex Systems

Your name could have gotten report to this “banking risk assessment database” for all sorts of reasons, including for example:

1. You have shown yourself to be a banking risk in the past.
2. You have been suspected of writing bad checks and/or committing other types of check fraud.
3. You still owe one of your previous banks money for an overdraft they covered on your behalf.

As you can see from this list of possible reasons, notably it is NOT the case that having a poor FICO, or credit, score would have had an influence on your name showing up in this database. These are actually two very separate risk assessment systems with no direct crossover or influence. So, you can put to bed your fears about your poor credit score having an effect on your account getting rejected.

Your New Best Friend: How Second Chance Checking Can Save The Day

If you keep getting rejected for a new account, your new best friend in the banking world just may be any bank that offers second chance checking. A second chance checking bank is simply any bank that promises not to refer to Chex Systems when reviewing checking account applications. In fact, they ignore it altogether.

If you are looking for checking accounts with no Chexsystems involved, here are 5 things you should know:

1. You need make a list of second chance checking banks. They will usually bill themselves as “second chance banking.” And, some may call themselves “non-Chexsystems banks.”
2. Choose one that has ATM machines installed all over the country – or at least in the states in which you travel.
3. Make sure they are insured by the FDIC.
4. Get a feel for the bank – make sure you like “who they are” – before making your decision.

Anybody who has applied for a new checking account but then been repeatedly denied knows the pain and frustration of trying to live your life without a checking account. A checking account allows you to carry a debit card, ATM card, and write checks. You can perform online banking, including paying your bills online.

As you are probably already aware, the main reason for getting rejected for a new checking account is something called Chexsystems. This is a consumer reporting database that banks use to determine whether potential customers are a potential risk.

You may be inspired to contact Chexsystems via their website to protest your being listed there. Unfortunately, once your name is in this database, getting it removed is like pulling teeth. Unless you have 5 years to wait! That’s how long it takes for reported items to disappear from Chexsystems.

If you are looking for the Chexsystems home page to file a complaint about your name appearing in their database, here are 3 facts to consider:

1. It is almost impossible to get your name removed from Chexsystems: Getting your name removed from Chexsystems is only possible if you can prove that it is there by way of error. Even then, it can take weeks to file a complaint and get it removed.
2. Dealing with the whole process is a hassle: Even if you can get it removed, why do you want to put up with the hassle? Your time is valuable.
3. A better alternative is to find a non-Chexsystems bank: There are banks that promise to never refer to Chexsystems when reviewing your account application. Those are the ones to apply to for a new account, since approval is basically guaranteed.

Chexsystems is a consumer reporting database that banks use to share information with each other about current or past bank customers whom they believe may represent a credit risk. Once your name has been reported to Chexsystems, it is very hard to get it removed.

Your name can be reported to Chexsystems for any number of reasons. In most cases, it is because you still owe money to bank with which you’ve had a prior relationship. This could be due, for example, to checking or debit activity you conducted on your account while the account balance was below zero – and then you never paid them back.

If you have been denied a new checking account recently and suspect that the reason for this is that your name has been reported to Chexsystems, you are probably wanting to visit the Chexsystems website to lodge a complaint. Here are 3 things you should know about Chexsystems:

1. It is actually very difficult to get your name removed from that database. Once it is there, they will not remove it unless you can prove it is there by mistake.
2. If you do try to protest due to the result of an error having been made, you must submit a form to Chexsystems, Inc. to explain your situation. It could take weeks to get your name removed.
3. To allow your name to be removed on its own, you will need to wait 5 years.

Rather than try to protest, it is probably a better use of your time to find a non-Chexsystems bank. These banks will grant you a checking account while never even referring to Chexsystems even once. In fact, they will never deny you based upon your standing in that database.