Credit Unions That Don’t Use ChexSystems 2024

ChexSystems is a reporting agency that banks and credit unions use to screen applicants based on their banking history in order to prevent fraud and reduce risk.

While we did find a few credit unions that don’t use ChexSystems, almost all of them do. But keep in mind that most credit unions use an automated system, and your application could be denied simply based on the number of accounts on your report.

If your application is denied, I recommend contacting the credit union directly to verify your identity. You should also take a look at your ChexSystems report, which you can access for free.

Credit Unions That Don’t Use ChexSystems

There are fewer credit unions than banks that don’t use ChexSystems.

Contrary to online sources, the vast majority of credit unions do use ChexSystems. We contacted credit unions nationwide to confirm their ChexSystems policy.

Here are the credit unions that don’t rely on the reporting agency to vet applicants:

Navy Federal Credit Union (NFCU) is a credit union for active-duty military, retired or reserved personnel, veterans, and their families.

It was founded in 1933 at the end of the Great Depression and now has over 12 million members.

A Navy Federal Credit Union representative confirmed to our editorial team that it uses an internal system to screen applicants and doesn’t require ChexSystems reports.

NFCU offers a wide range of products and services, including their Free EveryDay Checking, available to all members.

The account comes with no monthly fees and no balance requirements, making it ideal for those looking to rebuild their credit slowly without requiring you to commit funds to avoid fees.

2. California Community Credit Union

California Community Credit Union is a credit union based in California, with membership primarily open to people who live, work, or worship in Sacramento, Placer, or Stanislaus County, plus a handful of other eligible groups. Also known as CACCU for short, it’s been serving members since 1939.

CACCU offers five different types of checking accounts, including a New Beginnings Checking account for people who’ve been unable to get an account due to their banking history. As a representative verified, you can open a checking account without worrying about ChexSystem.

Just note that the New Beginnings account has a $15 monthly fee, and you need to deposit a minimum of $25.00 to open the account.

If you keep the account clear of overdraft activity and in good standing for a year, you can apply for a free checking account with all of its additional features.

Alternatives to Credit Unions That Don’t Use ChexSystems

If you aren’t eligible to join one of the credit unions above or you’d like to compare all your options, here are a few alternatives to consider:

Second Chance Banking

Second chance banking might be the right alternative if you’ve been denied an account based on your banking history. These accounts are designed to help you establish a positive banking track record and build solid habits.

Second-chance checking accounts often come with access to critical banking tools like debit cards, checks, and bill pay, but they don’t have some of the perks of other accounts, like rewards or interest. They often come with monthly fees as well.

Some second-chance accounts can be upgraded after you’ve held them for an extended period of time without overdrawing or abusing your account.

Banks that Don’t Use ChexSystems

There are also a handful of banks that don’t use ChexSystems. All of these accounts come with FDIC insurance, so your money is safe.

Here are the banks that we’ve confirmed don’t use ChexSystems:

Pre-Paid Debit Cards

Pre-paid debit cards are another viable alternative to consider. Unlike traditional bank accounts, these cards don’t require a ChexSystems check.

Pre-paid debit cards function similarly to regular debit cards, allowing cardholders to make purchases and withdrawals and manage their finances. You can typically load them with direct deposits or cash reloads.

A lot of pre-paid debit card providers offer online account management tools, enabling users to track their spending and pay bills. While pre-paid debit cards may come with some fees, like activation fees or monthly maintenance fees, they’re still a solid alternative to non-ChexSystem credit unions.

Frequently Asked Questions

What is ChexSystems?

ChexSystems is a Consumer Reporting Agency (CRA for short) that collects data on how checking and savings accounts are used. It accepts and retains records on irregularities committed by account holders, such as:

  • Unpaid overdrafts
  • Negative account balances
  • Fraud
  • Suspicious activity

The information is supplied by credit unions and banks. It’s accessible by the banks and credit unions that use the service and by individuals looking to review their reports.

The ChexSystems report is different than a credit report, which is generally supplied by credit bureaus such as Equifax, Experian, or TransUnion.

Why do credit unions use ChexSystems?

Credit Unions use ChexSystems to mitigate some of the risks involved in accepting new customers.

Checking accounts come with many credit facilities such as overdrafts and checks. Because of this, banks want to ensure that they’re not going to end up with unpaid bills and negative balances.

They also consider how many accounts are open in your name as a measure to protect against fraud.

What do I do if I’ve been denied a checking account?

If you’ve been denied a bank account due to your ChexSystems report, take the steps below:

  • Access a free copy of the report from ChexSystems
  • Review your report for inaccuracies
  • Open a dispute (if warranted)
  • Contact the bank if you were denied in error
  • Consider a non-ChexSystem account or card

Which credit unions use ChexSystems?

In reality, most credit unions rely on ChexSystems. Even the ones that offer more lenient second-chance checking accounts that overlook negative marks typically access your report.

Based on our fact-checking with representatives, here are a few credit unions that do use ChexSystems, despite common reports that they don’t:

  • American Airlines Credit Union
  • American United Federal Credit Union
  • Credit Union One
  • Excite Credit Union
  • Foothills Credit Union
  • Hope Credit Union
  • Los Angeles Federal Credit Union
  • North County Credit Union
  • Premier America Credit Union
  • Southwest Financial Credit Union

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