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’ »