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.

Fortunately, there are a number of banks in the marketplace (10-20% of them) that do not refer to Chex Systems when considering a new application. Trouble is, most banks do not directly advertise the fact that they do not use this system. Why? Because the typical consumer does not know what the term means, so these banks do not use it in their marketing or advertising materials.

To find a listing of national non Chex Systems banks requires some searching. There are of course blogs and other information aggregator web sites online that show such listings, but most of them are not truly comprehensive or they are trying to angle you to one particular bank. Your best bet to find such a listing is to do a search for such a bank via a search engine, inspecting one banking website at a time and evaluating your choices. The criteria you should use for evaluating a non Chex Systems bank are the following:

1. Make sure they are FDIC insured.

2. The bank should have a free or inexpensive application process.

3. Bonus: find one that is non-traditional in other ways, such as one that does not charge overdraft fees – ever (for example, check out: http://www.escape-overdraft-fees.com). If you are looking for a second chance checking account because your application for a checking account has been rejected, find and evaluate at least 2-3 non Chex Systems banks before you make your choice. And, be sure to pay attention to the criteria listed above when making your decision.

Learn more about non Chexsystems banks at: http://www.squidoo.com/open-second-chance-checking-account-online.

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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.

Trying to get removed from Chex Systems is not easy, either. Unless there has been some sort of error whereby something you never actually did was mistakenly attributed to your name in the system, often only time itself can get you safely removed. But, that could take years, and you need a new checking account now.

The good news is that there is an alternative to getting rejected by more banks or to waiting years to get removed from Chex Systems: finding a bank that offers a no Chex Systems checking account. These banks do not refer to this credit system when considering you for a new account. Yes, they’re out there and it will benefit you to find them.

Here are four tips for finding a no Chex Systems checking account:

1. Find an online bank – or at least a bank that has a strong online presence. Online banking is the future of banking, and in-person visits to banks are becoming less and less necessary for most personal banking transactions.

2. Make sure the bank you find is connected to an extensive ATM network. You should be able to withdraw your money from any major ATM in the country without paying a fee to your own bank.

3. Choose a bank that is FDIC-insured. FDIC stands for Federal Deposit Insurance Corporation. Since 1933, this type of insurance has covered all personal banking deposits up to a certain amount (e.g., $250,000). By choosing this type of insurance, you can rest assured that you will always be able to reclaim your money, even if your bank were to fold or go out of business.

4. Bonus: find a bank that does not charge overdraft fees. Almost all banks nowadays have overdraft protection programs, meaning they will cover a payment for which you have made a charge when there are insufficient funds in your bank account. However, the upshot is that they also charge you a hefty fee of $25 to $35 for the privilege. A few of these per month can really add up – and they can even charge you $35 for overdrawing by just a few dollars. In response to growing consumer resentment over this trend, some banks are now offering no overdraft fee checking.

If you are looking for a new checking account, having been reported to Chex Systems can really cramp your style. Instead of just giving up and going without a checking account, instead try a no Chex Systems account and increase your chances of getting approved tremendously.

Find out more about how to get a no Chex Systems checking account that also does not charge overdraft fees at: http://www.escape-overdraft-fees.com/.

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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.

A person can end up being reported to Chex Systems for a number of reasons, including past debit or check card abuse, bank fraud, or other irresponsible use of a checking account. Of course, just as is the case with mistakes on a FICO credit report, a person’s name can mistakenly show up on the Chex Systems database – even if no prior transgressions were made. Still, that doesn’t mean you can’t get rejected for a new checking account all the same.

Once your name is reported in this system, it can be hard to re-establish a positive standing with prospective new banks considering you for a new checking account. Bad credit checking accounts can be had, however. The answer is to look for a bank that offers second chance checking, such as this one: http://www.escape-overdraft-fees.com.

Second chance checking is only offered by a limited number of national banks. However, it provides bad credit individuals with the opportunity to establish a checking account even if they have been reported to Chex Systems. These checking accounts are usually available via online sign-up. Important: make sure that the second chance checking bank you choose is FDIC-insured.

For more information about bad credit checking, check out: http://www.squidoo.com/bad-credit-checking-accounts.

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