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Years ago, a company called eFunds invented a service called Chex Systems and started offering it to banks. Think of it as the FICO scoring system of the banking industry. Except, unlike FICO (i.e., credit) scores, Chex Systems is not a scoring system. Rather, the mere appearance of your name in this database can mean instant rejection of a new checking account application.

If you show up in Chex Systems, most banks reviewing your application look into the matter no further and just flatly reject your application. That is, they automatically assume that you must be a big credit risk and they refuse you a new checking account.

Showing up in this banking risk assessment system can have a number causes. Everything from some sort of bank fraud to debit/credit card abuse can be factors. And, your name can stay in Chex Systems for years, making it incredibly hard to be approved for a new checking account by any bank. Continue reading ‘Consumer Banking Tips – Listing of National Non Chexsystems Banks’ »

Chex Systems is a service that most banks use to determine whether a new checking account application should be accepted or rejected. Created by a company called eFunds, Chex Systems is a bit like the FICO scoring system used to measure a person’s credit-worthiness for new loans. Except – unlike with FICO scores – Chex Systems is not actually a score. Rather, just being mentioned on this banking risk-oriented database is enough for a prospective new bank to flat out reject your checking account application.

Getting rejected is bad news, of course, because if you are rejected by one bank, chances are others will do the same thing. You could easily be rejected by every bank you approach for a new checking account. Nobody wants to put themselves through this type of shame and discomfort.

How can you get into this system in the first place? Your name can show up in Chex Systems for a number of reasons, including for having abused your debit card, having committed a fraud against a bank, or if you still you owe your bank money for an overdraft that they covered for you in the past. Continue reading ‘Find a No-Chex Systems Checking Account – 4 Tips’ »

Bad credit individuals – those people with poor credit histories and low FICO scores – have a lot of adversity to contend with in their financial lives. Having a low credit score means it is harder to get approved for home, auto and personal loans. It also usually means having to pay higher interest rates than they would otherwise – making it harder to get out of their situation.

There is another type of bad credit, however: being reported to something called Chex Systems. Chex Systems is the banking industry’s answer to FICO scores.

Chex Systems is not actually a score. Rather, if a person’s name merely appears in this system, they are considered a poor risk from a banking perspective. Usually, showing up in this database will cause a bank to refuse an account application. Continue reading ‘Ins and Outs of Bad Credit Checking Accounts’ »