If you are reported to chexsystems and you apply for an account at a bank that uses telecheck or a credit report as a means of verification to open the account, you will be approved more than likely unless it is a credit issue. Some banks that use a credit report will use it for identification purposes only while others are looking at your score and credit lines.

Chexsystems does not determine if a bank opens an account for a consumer, it is the banks decision 100%

But many people are drawn to the banks that use chexsystems since the vast majority of them use chexsystems. Many banks now offer second chance checking (various names they call it) for those who have been reported to chexsystems. Then there are banks that do not offer second chance checking but will still allow someone reported to chexsystems to open an account at times. Many banks are now making exceptions.

The problem with second chence checking and banks that make exceptions is that there are no specific guidlines to determine if a person will be able to get an account. Let me try to explain with an example.

BANK A
----------

CUSTOMER 1
-CHEXSYSTEMS REPORT IS PAID AND SHOWS NO DEBT OWED
-CHEXSYSTEMS REPORT INDICATES NSF
-CHEXSYSTEMS REPORT SHOWS THAT 2 BANKS REPORTED THIS CUSTOMER

*** CUSTOMER IS DENIED***

CUSTOMER 2
-CHEXSYSTEMS REPORT IS PAID AND SHOWS NO DEBT IS OWED
-CHEXSYSTEMS REPORT INDICATES ACCOUNT ABUSE
-CHEXSYSTEMS REPORT SHOWS ONE REPORTING BANK

*** CUSTOMER IS DENIED***

CUMSTOMER 3
-CHEXSYSTEMS REPORT SHOWS CUSTOMER HAS NO DEBT INFO AVAILABLE
-CHEXSYSTEMS REPORT SHOWS NSF
-CHEXSYSTEMS REPORT SHOWS 1 BANK REPORTING

*** CUSTOMER IS APPROVED ***

CUSTOMER4
-CHEXSYSTEMS REPORT SHOWS SMALL BANLANCE OF 50.00 OWED
-CHEXSYSTEMS REPORT SHOWS NSF
-CHEXSYSTEMS REPORT SHOWS 1 BANK REPORTING

**CUSTOMER IS APPROVED ***


----------------------------------------

BANK B

CUMSTOMER1
-CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 1400.00
-CHEXSYSTEMS REPORT SHOWS NSF
-CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

***CUMSTOMER IS APPROVED***

CUSTOMER2
-CHEXSYSTEMS REPORT SHOWS CUSTOMER HAS NO DEBT INFO AVAILABLE
-CHEXSYSTEMS REPORT SHOWS SUSPECTED FRAUD
-CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

*** CUSTOMER IS DENIED***

CUMSTOMER3
-CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 20.00
-CHEXSYSTEMS REPORT SHOWS FRAUD
-CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

***CUMSTOMER IS DENIED***

--------------------------------------------------

BANK C

CUMSTOMER1
-CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 400.00
-CHEXSYSTEMS REPORT SHOWS NSF
-CHEXSYSTEMS REPORT SHOWS ONE REPORTING BANK
-CHEXSYSTEMS REPORT IS 3 YEARS OLD

*** CUSMTOMER IS APPROVED ***

CUSTOMER2
-CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES NO DEBT
-CHEXSYSTEMS REPORT SHOWS NSF
-CHEXSYSTEMS REPORT SHOWS ONE REPORTING BANK
-CHEXSYSTEMS REPORT IS ONLY A YEAR OLD

*** CUSTOMER IS DENIED****


In summary, it really depends on the bank itself. Most banks will not be able to give you a set of guidelines if you contact them as to this situation of making exceptions. Again as I said earlier, chexsystems is not what determines if a cumstomer is denied or approved. It is only a tool in which the bank uses to make the decision as to whether or not an account should be opened. I have had people tell me they were denied at a bank but then approved at the same bank but a different branch. That is because each manager and each bank that makes exceptions will make them differently if you have been reported to chexsystems.

This is why I always have expressed that it is critical to know what your chexsystems report says before making the decision to open an account. Knowing a bank makes exceptions will not help you if say for your example your chexsystems report is what we call " toxic" I can tell you that most times given the following information about your chexsystems report, I can pretty much tell you what your chances are at approval at most banks. This is because over the last 5 years I have been told who has been able to open account and who hasn't. It is very important NOT to be denied by applying at banks that will not allow you to open an account. This can cause your account to be flagged and ruin your chances to open an account at a bank that may have approved otherwise.

Personlly I hate chexsystems and still and will always believe if at all possible, never use a bank that uses chexsystems. Policies change, accounts are closed. Bank are sold and new policies are made: accounts are closed. Managers leave and new managers come and accounts are closed. Over the years I have heard horror stories from people being hurt when their accounts that are in good standings are frozen and closed.

This does not however mean I do not understand why people are attracted to the banks that use chexsystems. Many for conveniency and some just prefer the bigger banks. This is where I always suggest that you have a back up account and never have all your money in one place.


Important things to know when applying at banks that uses second chance checking and ones that make exceptions
1.how old is your report
2.how many banks are reporting
3.does the report show debt owed, no debt owed , or no debt info reported
4.does it indicate NSF, accounts abuse, suspected fraud, or fraud

These are all factor that will play into whether a person is approved.

I have four banks reporting to chexsystem. First account is paid, Second account is paid, Third account is NSF and last account still owe 1200, account abused. I've been getting denied a lot lately by banks. Is there anything I can do to stop this and can you please provide me with some banks that don't use chexsystem.

Thank you

Options for banks really depend on where you live

Would it be wise to dispute with ChexSystems if you have "No Debt information available" when you in fact owe the reporting bank zero? I have an account from just over 3 years ago that says this and it's making it nearly impossible for me to open a bank account.

I disputed the actual item back when it came onto my account and it came back as 'verified' even though in the explanation to me, it said that I in fact owe zero. Stupid ChexSystems data entry people?

Should I dispute the item in whole again or just do the balance? or should I dispute the whole thing again, and if that fails, do the whole thing again?

Thanks,
Ryan

*bump*

you do run the risk that they would in fact place the accurate amount that you owe and possibly not remove it if you dispute. Which bank is it?

Wells Fargo offers an account for some users that are on chexsystems. It depends on how many items you have. You might want to give it a try if they are in your area. The checking account is called the an "Opportunity Checking" account, if you are on this account and show good standing for about a year, they will often upgrade you to a regular account.

Yes, Wells Fargo does offer a second chance checking called New Opportunity Checking. Some have been able to get these accounts and remain okay with them while others were approved but only to have the accounts frozen and closed at a later time due to chexsystems. Many times a bank may initially approve an account but later will determine that the account holder may be a risk. Another growing problem we have seen is from Early Warning Services (EWS) If you have been reported to EWS, do not apply for an account at Wells Fargo or any of the following banks. More than likely they will be closed at a later time.

Early Warning Services is a limited liability company owned by Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, and Wells Fargo.

I am little confused here. Are you saying banks open up a second chance checking account, then close them? Isnt that what a second chance checking account is used for?

Bank of America opened an account for me. I am on chexsystem and owe over 2K between 2 banks. They pulled my credit which at that time was in low 500s to high 400s. I been with them for 1 1/2 yrs to 2 years.

Do it online. thats where I did mine

Right now Bank of America is initially opening accounts for anyone that applies online but they may be closed at a later time. This is especially true if you ahev also been reported to EWS

I remember many years ago, probably 7 years, when I wanted to open an account with First National Bank (FNBO) they did run a credit report and denied me. I wasn't even on Chexsystem at the time, and I had no negative tradelines. I simply just had too much credit. And I already had a good open account, but I wasn't happy with the service from the current bank.

Does anyone know if US Bank also runs a credit report for the purpose of score and credit lines? My Chexsystem report is clean , but I'm still working on repairing my credit.

To my knowledge, US bank does not run a credit report.

I had that, and that's how I was able to get a checking account again.

For some stupid reason I decided to add my mom and step dad to my checking account when I had Fifth Third and they (mostly my step dad) overdrew my account so much, so I ended up $500 in the negative. I found out that Wells Fargo did the opportunity checking and after about 10 months or so, I went to a college checking account, but then I had one overdraft because of my ortho office and my account got closed cause I couldn't pay the overdraft. So when I went to open another, I had to go BACK to Opportunity Checking, but now I am back on a regular checking/savings account. I think it's called Management Checking or something. I really like Wells Fargo. I hated Fifth Third cause they charged you $3 or so every day your account was in the negative, on TOP of their overdraft fee. I don't get that with WF.

I'm gonna get a secured CC through WF probably next month.