Solutions to ChexSystems
There are 4 solutions to ChexSystems. Here they are:
Going with a Non-Chexsystems Bank may be the most popular method of overcoming ChexSystems. Non-ChexSystems Banks do not use ChexSystems to verify new bank accounts, so approval is usually based on some other criteria, such as credit history or Telecheck. Unfortunately, most people who are listed on ChexSystems also have bad credit which means that qualifying for a Non-ChexSystems Bank can sometimes be problematic.
Pro: Does not use ChexSystems.
Cons: May require a credit check. Often times, these banks are small and do not have too many branch locations or ATMs.
Second Chance Checking Accounts
Second Chance Checking Accounts are checking accounts offered by some banks to help people get a second chance at banking. In most cases, applicants will be approved for a Second Chance Checking Account, unless there is a record of fraudulent activity on your ChexSystems file. While most Second Chance Checking Accounts do not issue checkbooks, there are still a handful of banks that offer the entire package. The complete package includes checkbook, debit card, online bill pay and most other services that come with a regular checking account. Due to the high level of risk for these types of accounts, banks normally charge a monthly fee which can range anywhere from $9 to $30.
Pro: High approval rate.
Con: Monthly fees.
Prepaid Debit Cards
Prepaid debit cards are quite similar to Second Chance Checking Accounts. Both offer a deposit account which allows you to withdraw or make payments via a debit card. Both are offered through a FDIC-insured bank and come with routing and account number. Both come with monthly fees and/or upfront fees. Despite the similarities, there are 2 possible distinctions. One, is that a Second Chance Checking Account may come with a checkbook, while a prepaid debit card will never include a checkbook. Two, is that prepaid debit accounts do not require a ChexSystems or credit check.
Pro: Does not use ChexSystems or credit + high approval rate.
Con: Monthly fees.
ChexSystems Record Removal
This is a viable option if you were reported in error, or if you can prove that there are inaccuracies in your ChexSystems record. Otherwise, it would be very difficult to get an accurate record removed from ChexSystems. There are basically 3 instances in which a ChexSystems record can be deleted. One, would be if the reporting bank requests the removal of your name. Two, if ChexSystems holds inaccurate information about you, it would legally have to be removed. Or three, if ChexSystems violates any of the provisions laid out by the FCRA (Fair Credit Reporting Act).
Pro: If successful, your name would be permanently removed from ChexSystems.
Con: Difficult to do if ChexSystems has accurate information.
