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’ »