Recently denied business checking account? The reason may be that the bank has said that it was due to a bad ChexSystems report. And, because ChexSystems is used by so many banks and credit unions, you can't just stroll across the street and create a checking account at another bank.
Fortunately, several banks do not utilize ChexSystems. These Non-ChexSystems Banks provide you with a path back into banking, as well as all of the services you want and deserve in business checking accounts, with surprisingly high acceptance rates. Let's get started!
What Is Chexsystems?
ChexSystems is a banking reporting organization that gathers information about your prior issues with deposit accounts, such as checking and savings accounts. The agency keeps a record of your financial transactions, which banks and credit unions might use to decide whether to approve your application for a new checking or savings account.
How Does a ChexSystems Report Work?
ChexSystems maintains track of your deposit accounts with banks and credit unions and generates a report based on that data to illustrate your account activity as well as the reasons your previous accounts were closed.
Here are a few examples of elements that may appear on your ChexSystems report:
- Account cancellation without consent
- Checks that bounce and overdrafts
- Negative amounts owed
- Abuse of accounts, cards, or ATMs
- Fraud or identity theft is suspected.
- Number of accounts recently applied for
When you apply for a new checking or savings account, the bank or credit union will look at your ChexSystems report to see if your application is approved. If your report reveals anything that leads the financial institution to believe you are a hazardous customer, you may be denied a bank account.
Fortunately, several banks and credit unions provide second-chance bank accounts. These accounts are primarily intended for persons who are unable to obtain a conventional bank account owing to concerns with their ChexSystems report.
However, second-chance bank accounts sometimes charge fees and may offer restricted services, such as the inability to sign up for overdraft protection or receive checks or direct deposits. You can also apply for a prepaid debit card, which allows you to spend just the money you've put onto your account.
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Banks That Don’t Use ChexSystems for Denied Business Checking Account
1. NorthOne Banking
NorthOne Banking provides a free business checking account without the need for ChexSystems. The $10 monthly charge allows small company owners to go to a bank without incurring overdraft, NSF, or minimum balance fees. Members have the option to cancel at any time. NorthOne is not a bank, but rather a financial technology firm. The Bancorp Bank offers banking services and is an FDIC-insured institution.
Features of NorthOne Small Business Checking
- Send ACH and wire transfers using your phone or PC.
- Transfer money for free through one of America's largest networks.
- Mobile check deposits are possible.
- Get human assistance on your timetable.
- Transfers for free sent cheques, and incoming wires
- Connects to additional small business tools
- All ATM costs are refunded.
- Every owner receives a free Mastercard® NorthOne Small Business Debit Card
- Add cash* at over 90,000 Green Dot sites throughout the country.
- Bancorp Bank, Member FDIC, insures up to $250,000 in balances.
2. Novo Bank
Novo Bank provides a free business checking account that does not require the usage of ChexSystems. Novo is a mobile business banking software that allows you to handle small company transactions online. Novo Bank is entirely digital, with no physical branch locations, and deposit account services are handled by Novo's partner bank, Middlesex Federal Savings.
Benefits of a Novo Bank Business Account
- There are no monthly costs.
- The minimum starting deposit is $25.
- Simple, user-friendly mobile applications
- In less than ten minutes, apply
- Customer service enabled by humans
- Transfers for free sent cheques, and incoming wires
- Connects to additional small business tools
- All ATM costs are refunded.
- Exclusive benefits worth thousands of dollars
3. Bluevine Bank
For over ten years, Bluevine has offered financing options such as a Line of Credit, Term Loan, and Invoice Factoring. Bluevine has added business checking accounts to its revolutionary product line-up, expanding its aim to empower small companies. Furthermore, they are one of the few business checking accounts that pay 0.50 percent APY on balances exceeding $1,000.
Features of the Bluevine Business Checking Account
- The minimal starting deposit is $0.
- There are no monthly service fees or NSF fees.
- There are no deposit or balance requirements.
- Interest rates of 0.50 percent APY for accounts exceeding $1,000.
- There are no ATM fees at any of the 38,000+ MoneyPass® locations around the country.
- Through cooperation with Green Dot, you may deposit cash at over 90,000 sites.
- Two complimentary checkbooks are included.
- It is compatible with other small business tools.
- Pay suppliers and invoices by ACH, wire transfer, or cheque.
- Through its partner bank, Bluevine accounts are FDIC-insured (Bancorp Bank).
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Final Outline
For a denied business checking account, ChexSystems is largely used for consumer banking transaction reporting. However, just as a personal guarantee is necessary to acquire a company credit card, your personal banking history might have an influence on your business checking account. Negative entries on ChexSystems are akin to the albatross of bad credit. It attaches itself to banks and yells, "Risky - Does Not Approve!"
7 Best Ways To Open An Online Business Checking Account There are some bank names and their key facts, which will help you to choose best online business checking account - Lending club - Key Facts:- Fee-free ATM access, generating interest, and digital tools are the best features.In roughly seven minutes, a business may create an account online.Brex cash - Key Facts:- Best for those who are looking for a tech-friendly alternative to a standard corporate bank account.Businesses may sign up for an account on the Brex website, and applications are typically reviewed in five to seven business days.
Novo - Key Facts:- Best for startups and freelancers that want to check their business online for free.Businesses may sign up for an account on Novo's website, and applications are generally reviewed in two to three business days.
NBKC -Key Facts:- Best for a simple, almost fee-free online business banking account.In just five minutes, you may apply for an account online and obtain approval from NBKC in five to seven business days.
Chase - Key Facts:- Online and some in-person business banking are the best options.Only privately owned sole proprietorships, corporations, or limited liability companies (LLCs) can use online business checking services (with one member or manager).
By supplying basic information and a few crucial documents, you will be able to accomplish so.
Most banks will want at least part of the following information:-Identification and personal information (driver's licence, social security number).Basic business knowledge (EIN, address).Articles of incorporation, partnership agreements, articles of organisation, and other business formation documents (based on your entity type).Certificate of DBA (if your business is using a DBA).
