Past financial mistakes can cause you to get blocklisted by ChexSystems and, therefore, barred from getting a bank account.
However, there are still valuable alternatives—a list of banks that don't use ChexSystems. These financial institutions overlook poor credit scores and give potential consumers a second opportunity. So let's dig right in.
Most banks use ChexSystems to track the applicants' financial history. Those who registered a negative record will be kept in ChexSystems for five years.
On a positive note, numerous trustworthy banks still need to employ ChexSystems to qualify customers, so you won't have to wait as long.
Depending on your banking background, there are many non-ChexSystems banks and credit unions to select from. Remember that most institutions listed here can be opened in less than five minutes.
TD Ameritrade is a brokerage account that doesn't employ ChexSystems to screen potential applicants. As a result, this online bank is the perfect choice to avoid inadequate credit screening and hidden fees.
Diversified investment choice, transparent pricing, innovative tools, and top-notch support make TD Ameritrade one of the best online banks that use no ChexSystems.
A low credit score is no longer a deal breaker with Chime. This online bank provides an award-winning app and a debit card from The Bancorp Bank and Stride Bank.
Besides not running ChexSystems reports, Chime comes with a set of benefits, including:
Varo Bank might be your best bet if you are looking for a no-fee online bank that accepts poor credit.
Varo Bank's pricing structure is second to none—it has no fees regarding monthly maintenance, international transactions, transfers, or debit card replacements. The bank also has a no-minimum policy, so you may apply for an account regardless of how much money you need to deposit.
SoFi is an excellent option to stay off the ChexSystems radar. This online financial institution is not technically a bank—it's mostly a savings account.
You can earn up to 2.50% APY, receive up to 15% cash back at local businesses, and take advantage of automatic saving features.
However, SoFi shares similar benefits with other online banks:
Celebrities like Ashton Kutcher, Dwayne Johnson, and Jennifer Lopez are high-profile investors in Acorns.
Despite being primarily an investing platform, Acorns can also assist you in saving and earning interest on your deposits without running any ChexSystems checks. Yet, Acorns still offers FDIC-protected checking accounts with limits up to $250,000 to avoid fraud.
The only downfall is—this platform might take high fees on small balances.
If you're concerned about detecting a history of financial issues, you'll be relieved to know Capital One doesn't run a ChexSystems report. Instead, the bank will perform a soft pull on your score and consider other risk indicators before accepting you. If your credit score is strong, you have nothing to worry about.
There are no monthly fees, and you can receive an annual percentage income of 0.10% on your balance.
Finding national banks that don't use ChexSystems can be challenging but not impossible—and Chase is a clear example of that.
To avoid fraudulent activity, Chase uses Experian to verify your identity, address, and social security number. Still, Experian won't retrieve a credit report. That's why acceptance is instantaneous.
There is no minimum initial deposit, and you will receive your Chase Secure card within a few days.
If you have a less-than-stellar credit score and want simplicity, Wells Fargo offers a Second Chance Banking known as Clear Access Banking—specifically designed for people that have been denied a bank account.
The bank supports the Wells Fargo mobile app, digital payments, and a contactless debit card.
Headquartered in Minneapolis, the US Bank is among the country's most reliable no ChexSystems banks. As a result, many individuals with poor credit scores create an account on US Bank with no minimum deposit.
US Bank is a full-service bank that offers an online savings account, a mobile application, and a trustworthy fraud-free service that can help rebuild your credit score.
If you have previously struggled to qualify for a traditional bank, PNC provides you with the Foundation Checking account.
Before getting started, remember to apply for a Virtual Wallet first. Then, if you get rejected for the standard account, call the bank or go to its location to learn more about the Foundation Checking account.
SunTrust was the thirteenth biggest bank in the US until 2019 when it merged with BB&T to become Trust Financial.
SunTrust offers top-notch online services like other financial institutions, including mobile banking, overdraft, and direct deposit.
Although SunTrust doesn't run ChexSystems checks, it will ask the credit bureaus Equifax and TransUnion to be approved.
The short answer is Bank of America offers second-chance bank accounts. You can apply for the Safe Balance Account, which allows you to pay bills online and mobile transfers while paying $4.95 monthly.
Especially if you're prone to overdrawing your account, the Bank of America is the go-to option for a customer looking for a low-cost bank.
Generally, Fifth Third Bank has higher fees if you can't meet the requirements. Unfortunately, that can stop many people with low credit from opening an account with this bank—but not all hope is lost.
Fifth Third Express Banking has no service fees and minimum balance requirements. But, unfortunately, you won't have access to check writing and ATM check deposits.
Are you searching for regional second-chance banks that don't use ChexSystems? Then, the 1st Financial Bank is your best shot.
Besides being the top choice for students, this bank helps people with bad financial situations improve their credit history. Unsurprisingly, a good score can make it much easier to rent an apartment or purchase a new car shortly.
The Navy Federal Credit Union is among the financial institutions that have recently stopped using ChexSystems to accept or deny accounts.
Remember—to join Navy Federal; you must be a veteran, work in the Department of Defense or National Guard, or have a family member who's a member.
Once you join, your membership is permanent. If you leave the military forces, retire, or quit your DoD position, you must keep your account active.
At first, it's best to avoid Webster Bank if ChexSystems banned you. However, Webster Bank provides customers with poor credit a Second Chance Banking called Opportunity Checking.
This bank will require a $50 minimum deposit, a monthly service charge of $11.95 when you enroll in direct deposit, and a free Visa debit card.
Like Webster Bank, even the regional Woodforest National Bank offers Second Chance Banking despite running ChexSystems reports.
If you're considering opening an account with Second Chance Checking, here's all you need to know:
ChexSystems is a reporting agency that keeps a database of American consumers with poor credit. Here are the activities that get reported to ChexSystems:
If you have an adverse financial history, ChexSystems will communicate this information to the bank you wish to open an account with. This way, the new bank can determine whether or not to accept you as a new customer.
Related: What Credit Score Do You Start With?
Considering that over 80% of credit unions and banks use ChexSystems, getting accepted with a negative record might take time and effort. That's where Second Chance Banking steps in.
Second Chance Banking has been recently introduced in the US banking industry to serve potential customers with a poor ChexSystems record.
In many cases, Second Chance Banking offers similar benefits to a traditional bank: access to a debit card, ATM, direct deposit, website, and mobile app. But, unfortunately, you won't be able to overdraft and access paper checks. Not to mention, Second Chance Banking puts a limit on spending, deposit, and withdrawal.
Read more: Can I Reopen A Closed Bank Account?
ChexSystems was initially designed to uncover financial criminals and fraudulent activities. Instead, this system has blocklisted more than 19 million Americans in the past decade.
The advantage of selecting non-ChexSystems banks and Second Chance Banking is pretty apparent—gaining access to a comprehensive list of banking services regardless of prior financial mistakes.
Only 20% of banks in the US don't adopt Chex—which might be a massive downfall for people who can't get off a ChexSystems freeze.
Unlike traditional banking services, these banks won't provide customers with overdraft protection, unlimited check writing, and minimum balance requirements.
After analyzing the list of banks that don't use ChexSystems, it's time to choose the most suitable bank or credit union that meets your preferences. Are you looking for an online or local financial institution?
Although people with terrible ChexSystems past have fewer alternatives than others, that will probably cause them to give up specific requirements to open a new account.
Although this doesn't affect your credit, you may be denied creating a new account if you owe money to another bank. Consider paying off your debt, getting a cosigner, or opting for Second Chance Banking.
Removing your ChexSystems is possible in five simple steps:
Step 1: Get your ChexSystems report by contacting the agency or filling out the disclosure form on the website.
Step 2: Find the information you believe is wrong and dispute it.
Step 3: If the report is correct, pay off your debt.
Step 4: Once you have paid off everything, ask your creditors to remove that information.
Step 5: Wait until the record drops off the ChexSystems database.
Negative financial behavior on ChexSystems often stays in the database for five years. However, in some cases, it may be disclosed for up to seven years under the Fair Credit Reporting Act.
If you're denied a bank account due to excessive overdrafts and bounced checks, you can choose from a list of banks that don't use ChexSystems. Even Second Chance Banking might be an excellent alternative to avoid rejection while building positive financial habits.
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