Advantages of Using No-ChexSystems banks
The purpose of ChexSystems is to record consumers bank accounts, management activities for a given duration. When you fill the deposit account application form the bank will check your banking history using ChexSystems to decide whether to approve or deny it. Therefore, a bank may refuse your account opening request if you have negative ratings. For example, failing to pay a bank deposit fee. Second chance banks offer you the opportunity to avoid these struggles. The following are advantages of choosing no-ChexSystems banks.
The banks that don’t use ChexSystems will not rely on your past when applying to open an account with them. Therefore, if you have always been making your bank account fee payment on time and you delay one time. The ChexSystems will record the adverse action. Thus, to avoid this from happening you should choose no-ChexSystems banks. Hence, you will have a new account within a short period if you choose second chance banks.
Second chance banks allow you to overcome the challenge of having a bad banking history for a long time. It takes five years to clear a negative banking record and sometimes even longer. It is common to have troubles managing your bank account for the first year. However, you later stabilize, and you make timely payments and deposit to the account. It is unfair to have to carry the burden of a bad consumer credit report for five or more years whereas the mishandling of the account was just for a few months. Such a record will make it hard for you to open a new account. Therefore, you should opt for second chance banks.
To keep your banking records private you should opt for banks that don’t use ChexSystems. It is legal for ChexSystems to grant access to your banking history to other banks and financial institutions. Therefore, you risk your data being used to deny you various services. To avoid this from happening you should opt for no-ChexSystems banks. You record will be kept confidential.
Second chance banks offer you the opportunity redeem yourself. When opening your first account, you may not have understood the fees you had to pay. They are usually excited to have a bank account and a credit or debit card. Later you realize that the banks have high fees that you struggle to pay making you have a negative banking history. To avoid these challenges you should choose a no-ChexSystems bank.
If you are planning to open your first account for your kid it is advisable you choose a bank that doesn’t use ChexSystems.