There are a variety of reasons why a person doesn’t have a checking account. In Massachusetts there are nearly 100,000 households that are entirely “unbanked”, meaning that no one in the household has a checking account. In a survey by the FDIC, the majority of people cite that they don’t have enough money to meet the minimum balance requirements. In addition, many people have a hard time opening an account due to a negative banking history.
If you’ve ever been denied a checking account due to past banking mistakes, you may have been reported to a company called ChexSystems. This consumer reporting agency is used by approximately 85% of banks in the country and keeps a database of customers’ banking history. A lot of people are blacklisted by ChexSystems for account mismanagement, which includes things like too many overdrafts, unpaid debt, or involuntary account closures.
Although ChexSystems is supposed to act as a safety net for banks to weed out people who have committed fraud or identity theft, everyday people are caught in the crossfire. Luckily, there are still plenty of options out there for you if you know where to look. Our job at CheckingExpert.com is to compile an up-to-date list of banks and credit unions that want your business regardless of your banking past.
Many institutions on this list offer second chance checking accounts that are designed for people that have been reported to ChexSystems. Others do not use ChexSystems during the application process and may not even look at your credit score! Here are the best banks in Massachusetts that can give you the checking account you deserve.