ChexSystems is a type of consumer reporting agency that collects information from banks and credit unions and supplies it to other financial institutions when they request it. The information that is stored in their databases is in regards to how a person has handled a previous checking account. Chexsystems does NOT record information on whether a consumer has good or bad credit such as how a consumer has repaid loans and credit cards in the past.
Unfortunately, when people apply for a new checking or savings account, the decision made by the bank or credit union to approve the new account is usually determined on the information that is contained inside of the consumer’s Chexsystems report. Any negative information (such as overdrafts, banking fraud, or charged off accounts) contained on a person’s Chexsystems report can result in the financial institution declining the applicant’s request for a new savings or checking account.
Any report that is received by ChexSystems can be seen by other financial institutions for five years. In order for a negative item to be removed from this report it must be removed by the source unless they become obligated to erase a negative item by law.
The term un-banked is used to describe people that don’t use credit unions or banks for their financial transactions because they neither have a savings nor checking account. Some consumers are un-banked because of a former issue from a prior banking relationship. This can be a major disadvantage to hard working people because is forces them to rely on costly alternative financial services. Most un-banked consumers can spend on a average of 2.5% to 3% of a government benefits check and and anywhere between 4% to 5% of their payroll check just on check cashing fees when they use non-traditional check cashing services. Additionally, these Americans will spent extra money to purchase money orders to pay recurring monthly expenses. For a household cashing a bi-weekly payroll check along with purchasing six money orders every month, a family with a average income of $20,000 could potentially end up paying as much as $1,200 yearly in charges and fees than a person using a traditional bank account.
It is estimated that 9 million households in the United States are un-banked. In the city of Santa Ana, CA it is estimated that 16.4% of the residents are un-banked and in San Bernardino, CA the estimate is that 15.9% of the people residing their remain un-banked. These two cities rank #5 and #6 on the Top 10 Unbanked Mid-Sized Cities in the U.S.
Unfortunately, many banks and credit unions across the country have turned their backs on these consumers that are unable to open a new checking or savings account – most likely they feel that there is no profit to be made from customers with a bad history of managing a checking account.
Even though there are few non-chexsystems banks, our staff at InfoAviator Publishing is taking a step towards helping un-banked California residents by locating and creating a list of local credit unions that do use Chexsystems in the state of California that are willing to put their profits aside and help these unfortunate un-banked people by approving them for a fresh start or second chance checking account. Our staff along with our loyal viewer submitted list can be reviewed at http://answers.infoaviator.org/?qa=466/arizona-non-chexsystems-banks-offering-checking-accounts. Additionally, consumers can view our staff verified nationwide list of real well-known banks offering fresh start and second chance checking accounts at http://infoaviator.org/finance/checking-accounts/2014/05/28/how-to-open-a-second-chance-checking/.
InfoAviator Publishing is a organization determined to help the un-banked currently residing in the cities and townships (but not limited to) of Richmond, Oakland, Vallejo, Rancho Cucamonga, Elk Grove, Glendale, San Bernardino, Inglewood, Riverside, Long Beach, Fremont, West Covina, El Monte, San Francisco, Carlsbad, San Diego, Sacramento, Huntington Beach, Victorville, Pasadena, Burbank, Orange, Concord, Corona, Stockton, Ontario, Downey, Oxnard, Roseville, Ventura, Pomona, Visalia, Costa Mesa, Garden Grove, Sunnyvale, Escondido, Oceanside, Palmdale, Hayward, Berkeley, Fairfield, Murrieta Norwalk, Lancaster, Santa Clara, Moreno, Anaheim, Bakersfield, Chula Vista, Simi Valley, Salinas, Modesto, Fontana, San Jose, Fullerton, Santa Ana, Fresno, Thousand Oaks, Los Angeles, Santa Clarita, Torrance, Santa Rosa, and Irvine in state of California.