Banks That Don’t Use ChexSystems

Have you been denied a bank account due to your ChexSystems record having negative information? If so, there are banks that don’t use ChexSystems that might be just what you need.

Many financial institutions deny those with a negative banking history a bank account. Banks mostly do this to minimize their risk exposure.

While this may limit your banking options, you might still be eligible to open a bank account through second chance banking, even with a negative report.

The good news here is that many banks and credit unions offer second chance banking options, allowing you to pick and choose the one that best works for you.

As with everything else in life, keep in mind that you might need to make some compromises by giving up on some of the features that might come standard with other accounts.

Even so, opening such an account can still be of great benefit in the long term and can even allow you to build a stronger credit score.

In This Article

12 Best Banks that Don’t Use ChexSystems

Here are the 12 Best Non-ChexSystems Banks you can start using today:

  1. BBVA USA
  2. Acorns
  3. Chime
  4. Wells Fargo
  5. Navy Federal Credit Union
  6. US Bank
  7. Renasant Bank
  8. United Bank
  9. SoFi
  10. First American Bank
  11. Peoples Bank
  12. Varo Bank

1. BBVA USA “BBVA

BBVA USA is the American subsidiary of BBVA – a multinational bank headquartered in Spain

Their US operations have limited reach, and the bank mainly operates in a handful of states. When compared by the size of total assets, BBVA is the 39th largest bank in the US.

BBVA USA offers several accounts, some of which do require a ChexSystems report. However, should you not qualify for a regular BBVA checking account, the bank will offer an account that does not run a ChexSystems report on you.

The account is called the Second Chance Checking account and comes with the option to upgrade to a fully fledge account after 12 months.

2. Acorns

Acorns is a digital-only back with high-profile investors like Ashton Kutcher, Dwayne Johnson, and Jennifer Lopez. Acorns is primarily an investment platform.

However, they also a spending account and a money-earning platform that includes cashback programs and job boards.

If you’re looking to open an account with Acorns, you’ll be glad to know that the company will not run a credit check on you. Verification is done through your Acorns account, so you will need to set that up first before applying for the Acorns Spend account.

The bank does not have any physical branches you can visit, so you will need to do everything online. The best way to manage your accounts is through the free banking app that allows you to manage your investments, retirement plans, as well as your free checking account.

To get the bank account, you’ll need to opt for the Personal account, which will set you back $3 per month. The company also takes its corporate social responsibilities seriously and is planting thousands of trees in the United States.

3. Chime “Chime

Chime is an online bank that promises to earn with you and not off you. They make the bulk of their money through the fee merchants pay when you spend using your Chime debit card. By doing this, Chime can offer its customer accounts with low fees, if any at all.

There are no minimum balances to maintain and no monthly charges either. Their ATM network is over 32,000 ATMs, from which you can withdraw money without paying a fee. Furthermore, there are no overdraft fees, which, as Chime points out, cost the average American household some $250 a year.

Chime does not use any credit reporting agency – ChexSystems or otherwise when opening an account. You also get many different ways to save money, including their secured credit card that can add an average of 30 points to your credit score.

Besides all this, you can get your pay up to 2 days earlier and a fee-free overdraft of $100 through SpotMe.

4. Wells Fargo “Wells

Wells Fargo was founded in 1929 and is one of the biggest banks in the US. Due to its size and reach, the Financial Stability Board considers this bank to be of systematic importance and has headquarters in New York and California. Wells Fargo currently operates some 7,200 branches and 13,000 ATMs.

While the bank runs customers through ChexSystems for some of its accounts, some accounts bypass this check. These special accounts give those customers who have a bad credit history an opportunity to open an account with them.

Even so, accounts come with several features that can help you improve your financial situation. There are Zero liability protection and no NSF or overdraft fees. You also get several tools to help you with your budgeting, cash flow, as well as spending.

On the other hand, you won’t be able to write checks from your account, and there is a monthly fee of $5.00 with no waivers.

Navy Federal Credit Union is a credit union for active duty and retired members of the Department of Defence (DoD), armed forces, the national guard, and their families, and those living in the same household.

The credit union offers deposit accounts, loans, credit cards, and several other personal finance products and services.

Generally, Navy FCU doesn’t pull a ChexSystems report. However, they might check your credit report with a bureau when applying for membership, which in most cases will be done through TransUnion.

Late and missed payments are also reported to credit bureaus, so you’ll need to be careful and make sure everything is paid on time.

The account comes with no monthly maintenance fee, and dividends are paid out once a month. The APY rate on checking accounts varies between 0.01% and 0.045%.

The same rate range applies to dividends earned. There is also a minimum deposit requirement that you’ll need to make to open the account.

6. US Bank “US

US Bank is the bank of US Bancorp, a bank holding company based in Minneapolis. Its area of focus is the West and Midwest and has over 3,100 branches and close to 5,000 ATMs.

The bank offers a wide range of products and services, which aren’t limited to the consumer market alone. Other areas this bank operates in include insurance, investment banking, wealth management, and many others.

The bank’s Easy Checking Account is an excellent option if you’ve got a negative ChexSystems report. The account comes with a Visa Debit Card and online and mobile banking (including mobile deposits).

While the account does away with certain features (like check writing), it includes free access to your credit score through the TransUnion CreditView dashboard.

The bank allows you to open accounts online through their website, which uses 128-bit encryption to keep communications secure. You can also make an appointment at their branch. However, it might be wise to give them a call beforehand to ensure they are receiving customers at this time.

7. Renasant Bank

Renasant Bank is a community bank headquartered in Mississippi. With over 200 branches and offices spread across Alabama, Florida, Georgia, and Tennessee (aside from Mississippi), they manage just shy of $15 billion in assets and offer personal and business banking.

Through their website, the bank offers a credit assessment calculator that can help you understand what your credit situation is and how this may impact you when taking out a loan.

When it comes to opening an account, however, the bank does not pull your Chexsystems report. Instead, it will only check if you have anything outstanding with them.

When it comes to checking account options, Renasant bank offers quite a few.

You’ll need to meet the minimum opening deposit requirement of $50 and keep a daily balance of $1,000 or more if you want to avoid paying the $10 monthly maintenance fee.

8. United Bank

United Bank is a community bank serving communities in Southwest Alabama and Northwest Florida. Their head office is located in Nashville and serves both individuals as well as businesses.

United Bank also offers many financing options to the agriculture and forestry sector, including loans for equipment and land and working lines of credit, among others.

The bank also offers checking accounts to those who have either low or no credit. If you keep the account in good shape for six months, the bank will also offer the chance to upgrade to one of their other accounts. The 6-month timeline is half the time what many other banks offer their second chance customers.

Unlike other banks, however, online banking does not come as standard. Instead, it’s an opt-in feature that costs $4.95 a month. Aside from this, there is also a maintenance fee of $10, which is payable once a month.

There is no debit card, but you can choose from a selection of check options. Here, you’ll also need to pay extra attention to NSFs (insufficient funds), as these will set you back $34.00 each.

9. SoFi “SoFi

SoFi is not a bank but rather a personal finance company. It works like a bank in many ways, with many products and services you’d find in a traditional bank. The company was founded in 2011 and is based in San Fransisco, California.

For a 9-year-old company, SoFi has an impressive list of offerings, including a Cash Management Account that doesn’t use ChexSystems reports. Unlike other accounts that don’t use ChexSystems, SoFi Money is also interest-bearing checking account with an APY of 0.25% on offer if you meet the monthly deposit requirement of $500.

The interest rate is not the only difference SoFi accounts have when compared to other accounts. Since SoFi works with multiple banks, deposits are insured up to $1.5 million – that’s $1.25 million more than you get with other accounts. You can also get up to 15% cashback rewards when making qualified purchases through SoFi Money.

Throughout 2021, SoFi is also hosting a monthly sweepstakes with $20,000 in total cash prizes up for grabs. The cheery on the cake is that there are no monthly or account fees, so you get to keep more of your money.

10. First American Bank

First American Bank is a community bank serving customers in Illinois, Wisconsin, and Florida. The bank is privately owned and – even if it’s pretty small – still offers a wide range of services and products to its customer base.

Their Fresh Start Checking account is designed for those looking to get their finances back on track. There is a monthly fee of $9.95 and no minimum balances to maintain, which can help you plan your finances better.

While the bank is relatively small, it partners up with AllPoint and Presto! ATM networks, so you get access to more options for surcharge-free withdrawals.

The bank also offers a comprehensive financial education platform to help you make the most of your account. Here, you’ll find a range of topics and articles that provide advice on several financial subjects and matters – from loans to savings to business and everything in between.

11. Peoples Bank

Peoples Bank, also known as PB Paris, is a small community bank based in Texas. It was founded in 1988, which makes it a relatively young bank.

They have 2 locations and 2 ATMs but still manage to offer a healthy mix of different accounts and loans for both personal and business users.

Peoples Bank also runs Peoples Cash Solutions, which offers second chance checking accounts to people denied an account due to bad credit. The bank does exclude anyone with a history of fraud, however.

Accounts come with some great features such as a personal checkbook, a debit card (MasterCard), and free online banking. You can easily apply for the account online, where you’ll also find a list of all the documents that the bank will need to process your application.

There is a minimum opening deposit requirement of $30, which you’ll need to transfer into your account before the bank activates it.

12. Varo Bank “Varo

Varo Bank, also known as Varo Money, is a neobank offering full-servicing banking. They have no branches, so all interactions need to be done online or through the accompanying app.

Varo was founded in 2015 and is banking mainly aimed at millennials and young people looking for a different banking experience than traditional banks.

Varo doesn’t offer all of the products and services that you might find in a traditional bank. Still, you’ll find things like a savings account, a checking account, a cash advance service.

You can get a Varo Bank Account without having to go through ChexSystems. The account has no maintenance fees, no foreign transaction fees, and free ATM withdrawals from 55,000 ATMs.

What is ChexSystems?

Like EWS (Early Warning Services) and TeleCheck, ChexSystems is a consumer reporting agency. It collects information about issues you’ve had with deposit accounts (like checking accounts and savings accounts).

To this end, ChexSystems works with both banks and credit unions who supply the information when a problem arises and retrieve it when opening a new account. Some banks will also periodically check ChexSystems’ reports on existing customers.

When this information is retrieved, the bank or credit union will check for past problems and may deny you an account if the report highlights any negative activity.

Negative Activity Recorded Can Include the Following:

  • Bounced checks
  • Overdrafts
  • Involuntary closure of accounts
  • Negative balances
  • Abuse
  • Fraud
  • Identity theft
  • Number of account applications

Why Do Banks use ChexSystems?

Banks use ChexSystems reports as a form of risk management. In the bank’s eyes, someone who has defaulted or committed fraud before is more likely to do the same in the future. Allowing them to open an account would put the bank at risk.

If this happened to you, know that you’re not alone. A 2017 FDIC report showed that 14% of households that do not have a bank account list a negative report because they do not have an account.

Fortunately, there are options, including banks and credit unions that do not use ChexSystems.

Before going forward with looking for alternatives, you might want to have a look at your ChexSystems report to make sure that information is factual.

By law, you can get one free report a year by visiting ChexSystems’ website and when you’re denied a bank account due to the information contained in the report. You can dispute any erroneous information through ChexSystems’ website.

Which Banks Don’t Use ChexSystems?

Most banks use ChexSystems for all account applications, with some banks running ChexSystems on their customers periodically as part of their risk assessment strategy. Such practice is especially true for those account holders who are applying for or already have an account with credit.

While this rule can be unfair at times, it is something that most banks carry out. Even so, many of these same banks offer specialized accounts designed for people with bad credit, bypassing ChexSystems checks altogether.

Through these accounts, banks can offer those who don’t qualify for a regular account the opportunity to still open a new bank account with them.

In most cases, the accounts that don’t use ChexSystems come with perks and features similar to those of a basic checking account.

What you get:

  • FDIC Insurance / NCUA Insurance. In most cases, you’re covered up to $250,000. However, you’ll find extended insurance options with CMAs (Cash Management Accounts).
  • Monthly Service Charge. Most accounts come with a fixed monthly service fee and no minimum balance requirements.
  • No ATM Fees. You don’t pay ATM fees when withdrawing from the bank’s ATM network.
  • Mobile app. An app that gives you access to mobile banking and features like online bill pay and mobile check deposit.
  • Debit card. Most accounts come with a Mastercard or Visa debit card, which in some cases it’ll be a prepaid debit card.
  • Opening deposit. Many banks have an opening deposit requirement, which you can transfer through direct deposit or check.

What you don’t get:

  • Overdraft Protection. With no overdraft facilities, overdraft protection is not needed and not offered.
  • Unlimited Check Writing. Most accounts do not offer check-writing facilities; however, some do, even if these are few and far between.
  • Minimum Balance Requirements. The majority of the accounts have no balance requirements but carry a fixed monthly fee.

Banks That Don’t Use ChexSystems FAQs

What banks or credit unions do not use ChexSystems?

If your ChexSystems record is holding you back from opening a bank account, non-ChexSystems banks can be your best option. Many banks offer accounts that bypass this check, while others bypass checks entirely.

Since many banks and credit unions offer accounts that bypass ChexSystems checks, you’ll find these kinds of accounts in all shapes and sizes. As they come with different features and perks, it’s crucial to understand what is truly important to you and what you’re willing to give up.

Once you’ve figured this out, browse through our list of best accounts that don’t use ChexSystems and pick the one that’s the best fit for you.

Can you open a bank account if you’re in ChexSystems?

If you’ve been denied a new checking account due to a negative ChexSystems report, you can still open a bank account. In this case, you will need to look for banking options marked as second-chance banking.

These options include checking accounts designed to help you get back on your feet. Some banks will even offer you the opportunity to open a standard checking account after six months to 1 year (depending on the bank).

The important thing here is to use the account as a second chance to make things right. You’ll need to be mindful about payments and how you manage your money to avoid more negative reporting.

Can I open a bank account if I owe another bank money?

If any money you owe shows up on your ChexSystem report, a bank that checks this report beforehand might deny you an account. In this case, you’ll need to look for a bank that doesn’t use ChexSystems.

Can a bank remove you from ChexSystems?

A bank can’t remove you from ChexSystems – they don’t run the system. However, they can make an exception and report payments done on time to credit bureaus. ChexSystems records are automatically cleared after five years.

That said, if the information in the report is incorrect, you can open a dispute directly with ChexSystems.