Non Telecheck, Non ChexSystems Banks & Credit Unions Where You Can Open Second Chance Checking Accounts
Non Telecheck, Non ChexSystems Banks & Credit Unions Where You Can Open Second Chance Checking Accounts
Non Telecheck Banks & Credit Unions
Not many people know exactly what kind of company Telecheck is and what they do. Telecheck is the world’s leader in electronic check acceptance services. When you use a check to pay for a purchase, the merchant will take that check and run it through Telecheck’s database before accepting it. If no red flag shows up, your check is accepted. If there is a red flag, your check will be rejected. This system allows businesses to accept customer checks as easily and efficiently as accepting credit cards, while saying goodbye to bounced checks and returned check fees. What happens behind the scenes is that Telecheck reviews your information; upon seeing that you’re a “good” customer, it guarantees payment to the business by turning your paper check into an electronic check which will be processed at a later date.
If your check is returned, the businesses that accepted it will report it to Telecheck. They will still get paid, because Telecheck offers what’s known as a check guarantee service: they assume the collection risk should the checks be returned. They’re one of the most popular bad check databases, and being listed can make it difficult to have any business accept your checks. Once reported to Telecheck, the entry will remain until the check is paid in full. How long you stay in Telecheck is entirely up to you: they act as a collection agency and a credit bureau. However, unlike some of its competitors Telecheck does remove the check writer from their bad check databases once payment is made. If the customer chooses not to pay for the returned draft, then their information could be reported for as long as 7 years. However, most bad check databases including Telecheck will remove the entry after 5 years of reporting time.
Some banks and credit unions will also review bad check databases, including Telecheck, before issuing an account to a new customer. Non Telecheck banks are banks that do not bother with this verification process.
Non ChexSystems Banks & Credit Unions
More people know about ChexSystems than Telecheck, because 1) more financial institutions do business with ChexSystems than do with Telecheck and 2) getting in trouble with ChexSystems has way more severe consequences. To people who ask “How did I get reported to ChexSystems?”, the answer is actually quite simple: you had a checking account, overdrew it, and didn’t pay the bank back the overdraft. So they closed your checking account and reported you to ChexSystems. If your name is on the ChexSystems list, then it becomes very hard for you to open checking accounts, since an estimated 80% of financial institutions run a ChexSystems check on you before they approve you for a new checking account.
And if you’re in trouble with ChexSystems, trying to establish a traditional banking relationship within the next 5 years will be very hard. Fortunately, there’s a way you can eliminate the traditional five year waiting period imposed by most banks and credit card companies.
There are non Chex Systems banks out there, because if 80% of the banks and credit unions use ChexSystems, that means there’s another 20% that doesn’t! While you’re doing your search, just make sure that the non ChexSystems bank that you choose is FDIC insured.
Second Chance Banking Accounts
Second chance checking accounts are bank accounts for customers who have a damaged banking history and who are listed in, or have been reported to, any recognized consumer checking history database like Telecheck or ChexSystems. As a result they’re denied checking accounts pretty much everywhere.
Also known as guaranteed checking account, fresh start checking account, or bad credit checking account, almost all those second chance checking accounts have some kind of restrictions on various account activities as well as the transactions that can be performed. One example of a restriction applied to these accounts is the denial of checkbooks. However, most of the other features of normal checking accounts such as ATM withdrawals, online bill payments, and direct deposits are included. They have overdraft safeguard features in place so that’s one less thing for you to worry about, especially since this is what got you in trouble in the first place!
Second chance checking accounts are available with a handful of banks across the country – and chances are that with the current economic downturn, more and more people are reported to ChexSystems, so more second chance checking accounts options might show up to fulfill the need for such a service. There are still requirements for qualifying for a second chance bank accounts, one of the main ones being that if you owe money to another bank or credit union, you will be required to show proof of payment before you can open a new account with the new financial institution.
No minimum bank account balance and no interview with a personal banker are required to open second-chance bank accounts. A specialty of second-chance bank accounts is that it offers no credit check, as credit checking keeps customers with a bad banking history from opening bank accounts. No Chexsystems checks are offered at the time of opening second-chance bank accounts. Certain financial institutions offer free Visa/Mastercard debit cards, an ATM card, and a limited number of checks through which transactions can be made.
You can get immediate relief from the Telecheck or ChexSystems nightmare with a second-chance checking account. Many people will try to sell you a list of places that offer this type of account, but don’t waste your money, and the reason is simple. We said previously that 80% of the financial institutions out there use Chexsystems, but ChexSystems’ goal is to capture 100% of the market, so they’re very aggressively marketing their service, and continuously signing up new banks. As a rule, banks and financial institutions that market themselves as non ChexSystems options will give you more accurate results that a (possibly outdated) list.
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