Get here to know about ChexSystems and the Online banks
Did you, by any chance, get turned down recently while you tried opening a new bank account? You are not the only person to get rejected. Nearly 15% of bank applicants receive rejection every day for new checking accounts. The common reason is they are flagged by the ChexSystems. Fortunately, there are a few online banks that don’t use ChexSystems.
If there are financial mistakes of yours done in the past, it comes backbiting you in the ChexSystems blacklist. This results in not letting you open a bank account.
Some banks ignore a bad credit report and provide a second chance to customers at maintaining a checking account. However, the non-ChexSystems accounts come with fees, but it is also the perfect way of getting back into the game. The bank accounts exist for people with bad credit, but you should know where to find the second-best chance in banking accounts.
What Is ChexSystems?
ChexSystems, Inc. refers to a reporting agency collecting data on consumers from banks and credit unions by checking and using the savings account activity. The company makes use of this information, including consumer reports, to create tools that the financial institutions use to screen potential customers.
The agency helps credit unions and banks by screening risky applicants. They provide reports on previous financial issues such as closed or overdrawn accounts, and unpaid debt. Once an account is flagged by the ChexSystems, you will have a tough time to acquire a bank account.
Banks that do not use ChexSystems
If there are a few defaults as per the banking history in your account, you need not worry as you are lucky even then. The banks run credit checks on the applicants, while some do not make use of the ChexSystems. However, some banks do access the reports but do not depend entirely on the information to make decisions.
Banks not using ChexSystems:
TD Ameritrade does not screen applicants using ChexSystems. It is a brokerage and expects you to open a brokerage account. You can open an online bank account with no minimum deposit at TD Ameritrade and with bad credit.
TD Ameritrade perks: Free debit card, no monthly fees, and allows paying bills online.
Axiom offers individuals with poor or bad credit history second-chance banking. It allows opening a new bank account even to individuals who made financial mistakes previously.
Axion Bank Gateway: No requirement of minimum balance, $25 minimum opening deposit, debit card subject to approval, and $12.95 service fee monthly, reduced to $8.95 with amount done as direct deposit.
Woodforest National Bank
The Woodforest National Bank offers a second chance to check the customers with banking problems history.
Woodforest Bank Gateway: $9 set-up fee, $25 minimum opening deposit, select states location, and $9.95 with direct deposit as a monthly fee, and without deposit, it is $11.95.
United Bank also welcomes a bad ChexSystems report. But the bank has locations in Alabama and Florida only.
United Bank’s Gateway: Maintenance fee $10 monthly, 24/7 telephone service, mobile banking with a deposit check, account alerts, and $4.95 per month online bill payment available.