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19+ Banks That Don’t Use Chexsystems So You Can Open Account Easily!

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You don’t get second chances with many things in life but now thanks to banks that don’t use Chexsystems, you can get a second chance checking account if you have messed up your previous one!

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Customers who don’t use their checking accounts responsibly are often blacklisted by Chexsystems. This becomes a part of their credit history and it gets difficult for them to open a new one- at least in a bank that uses Chexsystems to track applicant’s credit report.

Since an un-welcomed addition like this can stay on your credit report for 5 years, you have to find another way around because life can get very tough without having a bank account.

A simple solution is that you should look into the list of banks that don’t use Chexsystems & offer second chance banking.

we have compiled a perfect one for you here!

Chexsystems – Reporting Agency For Your Banking History

So far we have talked about usefulness of credit bureaus in many of our articles. Where these financial institutes keep a check on consumer’s credit history, Chexsystems is another type of reporting agency that has the job of scrutinizing and reporting banking history.

Note! Chexsystems gather information such as bounced checks, overdrafts, etc. and presents this information to banks when you apply for a checking account.

Most of this data is collected with the help of bank networks and credit unions that record their consumer’s data.

Chexsystems merely has the responsibility of analyzing this data and then devising a risk score for each consumer.

This brings us down to discussing another important question. That is:

How Chexsystems and Its Scoring Works?

After Chexsystems has obtained information regarding your financial activities, it formulates a report and a risk score.

This is evaluated by banks before they decide to do business with you.

The report prepared by Chexsystems is called Consumer Disclosure. It contain user’s basic information and any negative banking history that might be important. Some important items mentioned here include:

  1. Unpaid Non-sufficient Funds items.
  2. Paid Non-sufficient Funds items.
  3. Uncollected overdrafts
  4. Automatic payments that bank cleared
  5. ATM transactions
  6. Overused debit cards.
  7. Overused savings account
  8. False information provided, if any, during account opening.
  9. Negative balances.
  10. Bounced checks.
  11. Suspected fraudulent activities.

Using this information, Chexsystems assigns a consumer risk score to each user. It ranges between 100 to 899 but it different from how FICO credit score works.

There is no definitive classification of good or bad score. Generally speaking, a lower score means you are a risky banking customer.

All the data collected can stay on your records for 5 years. You can check the report once in 12 months by submitting a request online or calling 800-428-9623. Lastly, you can also send in a written mail to the following address:

“Chexsystems, Inc.Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125”

19 Banks That Don’t Use Chexsystems

More than 80% of banks & credit unions in the USA rely on Chexsystems to determine risk score for consumers.

Therefore, it is difficult to find a reliable bank that does not make use of this reporting agency.

Luckily, we have done the homework and here is a list of 19 best banks that you can try out in these tough times!

1. BBVA

No minimum balance requirement
Free online banking
Top-choice by all reviewers

BBVA relies on EWS (Early Warning Services) instead of Chexsystems to keep track of its customers.

It is not only our top-pick but has also won many awards as one of the leading financial online service.

EWS ensures that applicants are checked for fraud or forgery before opening their online checking account.

Although it is hardly likely that this would stop customers with poor credit from over-drafting, it does secure quality of the accounts nonetheless.

Accounts holders will have access to a wide range of features including free online banking, free mobile deposits, free customer support service, and they will be free of any monthly charges as well!

BBVA Checking Account Prominent Features

  • Takes on $25 to open the account
  • No minimum cap on account balance.
  • Free of any monthly service charges
  • Offers cash back rewards for purchases made with debit card
  • One of the best-reviewed mobile app
  • Free of cost online banking and mobile deposits
  • Impeccable customer support service
  • FDIC-insured

2. Chime

Easiest to get approved
Come with free debit card
No excessing bank charges

Chime mobile app is already quite popular amongst user. On top of that, Chime checking account is a win with no hidden bank fees and minimum balance requirement and no credit check to open the account.

Chime’s customer base is rapidly growing and it is regarded as one of the top banking services in the US. In fact, it is the only bank that can be considered as a strong competitor for BBVA.

Chime Checking Account Prominent Features

  • Easy approval with bad credit score
  • No hidden bank charges
  • Free debit card
  • Offer 38,000 fee-free MoneyPass
  • Offer Visa Plus Alliance ATMs
  • Every purchase rounded up to nearest dollar

3. Wells Fargo

Direct deposit with mobile
Impeccable mobile app
No overdraft charges

Wells Fargo recently introduce Clear Access banking that operates on basis of debit card-only account. It is removed overdraft fees as well as non-sufficient funds fees.

Moreover, a monthly maintenance charge of $5 has also been waived off permanently for users under 24 years of age. The banking service is available in all 50 states in America.

Wells Fargo Checking Account Prominent Features

  • Easily accessible in the United States
  • Only take $25 to open account
  • Easy mobile deposit and mobile banking app
  • Comes with FREE Visa debit card
  • Money transaction possible via Zelle

4. First American Bank

Swift online banking system
Waives off monthly charges
Allows unlimited check writing

First American bank is open to residents in Illinois, Florida, and Wisconsin. There is no minimum balance requirement and digital statements are free as well.

However, you need $50 deposit to open an account.

First American Bank Checking Account Prominent Features

  • Offers online banking
  • Open in all 50 states
  • Checking account required $50 deposit
  • $9.95 as monthly fee
  • No minimum balance required
  • Unlimited check writing

5. US Bank

Trustworthy, fraud-free service
Easy to get approved
Helps in credit rebuilding

US Bank is a trustworthy service in the United States that allows you to open a checking account with minimum deposit. Moreover, you can steer free of $6.95 monthly charges by keeping your account deposit more than $1,500.

US Bank Checking Account Prominent Features

  • Over 3,000 branches
  • Less-than-perfect banking history allowed
  • Easy checking account
  • Helps rebuild credit score

6. First Convenience Bank

Lowest limit for opening account
Free of monthly charges
High approval rates

First Convenience Bank is available in Texas, Arkansas, New Mexico, and Arizona. You can open an account with a minimum $20 deposit and also be free of monthly charges if you follow certain rules.

First Convenience Bank Checking Account Prominent Features

  • 1st National Bank Texas
  • Open in selective states
  • Minimum deposit of just $20
  • Possible to waive off monthly charges

7. SoFi

No hidden bank charges
Offer cash bonus
Easiest sign-up process

With no absolutely no account fees, SoFi is a remarkable choice for customers with struggling banking history. You can also earn up to $50 cash bonus by signing up with SoFi Money feature.

SoFi Checking Account Prominent Features

  • No account fees at all
  • No initial deposit to open account
  • Win $50 for signing up with SoFi Money
  • Short and easy sign up process
  • Easy-to-use mobile app

8. Navy Federal Credit Union

Two types of bank accounts
Free mobile deposits
No credit history check

All legal residents in the US can open an account with Navy Federal without worrying about banking history. It is an excellent choice.

You can either choose to open an Active Duty Checking account or Free eChecking account.

Navy Federal Credit Union Checking Account Prominent Features

  • Free mobile deposits
  • Dividends credited every month
  • Free bill payments
  • No banking history reviewed

9. SunTrust Bank

Most convenient for students
Waives off monthly charges
Requires minimum deposit

SunTrust lets you open account easily and also provides a number of ways in which monthly fees can be avoided. For example, it is not charged to students and people who have direct deposits of $500. Customers who make at least 10 transactions every month also do not need to pay the monthly fee.

SunTrust Bank Checking Account Prominent Features

  • Fit for people with poor banking history
  • Requires $100 minimum deposit
  • $7 monthly charges
  • Possible to avoid monthly fees

10. Renasant Bank

Safe banking service
Comes with free Mastercard
Swift online banking

Renasant does not your Chexsystems so you are safe with a bad banking history. Moreover, you can apply and get a Mastercard debit card from the bank to make your life easier. Lastly, the $8 monthly fee can be avoided by keeping a daily balance of at least $500.

Renasant Bank Checking Account Prominent Features

  • Online banking
  • Online bill payment
  • Offers Mastercard debit card
  • $50 minimum deposit
  • $8 monthly fee

11. United Bank

No excessing banking fees
Free online services
Free mobile check deposits

US Bank service is limited to Virginia, Maryland, Ohio, North Carolina, South Carolina, Washington, and West Virginia. It is a good option for opening a bank account that does not charge too many excessive fees.

United Bank Checking Account Prominent Features

  • Free checking account
  • No minimum balance requirement
  • Free online banking
  • Free Visa debit card
  • Mobile check deposits

12. Peoples Cash Solutions

Good online banking
Comes with debit card service
Free monthly account statements

The only downside of Peoples Cash Solutions is that it does not offer mobile app. Other than that, it is a great option for people who wish to have a bank account with their name in Chexsystems.

Peoples Cash Solutions Checking Account Prominent Features

  • Free online banking
  • Free paper checks
  • Minimum $30 deposit
  • $4.95 monthly fee
  • Free Mastercard debit card
  • Free account statements each month

13. TD Bank

Affordable banking system
Comes with free debit card
Good customer support service

TD Bank lets its customers steer free of $15 maintenance fee if they deposit a $100 daily minimum balance. Moreover, you can qualify for a debit card free of charges and also make use of customer support service that is available throughout each day of the week.

TD Bank Checking Account Prominent Features

  • Affordable checking account
  • Possible to waive off maintenance fee
  • Comes with free debit card
  • Impeccable customer support service
  • 0.25% rate discount on TD personal loan

14. TCF Bank

Easy to get approved
Minimum deposit required
Accessible customer support service

US residents in Indiana, Michigan, Colorado, South Dakota, and Wisconsin can apply for TCF Bank account even if their name is on Chexsystems. TCF gives a chance to its customers to open a checking account as long as they don’t owe them any money. Moreover, you can open a basic account with just $25 deposit.

TCF Bank Checking Account Prominent Features

  • Easy approval terms
  • Minimum deposit of $25 required
  • No minimum balance requirement
  • Open for residents of selective states

15. Fort Sill National Bank

Waives off monthly charges
Offers electronic statements
High approval rates

The bank is open to military as well as civilian residents. It lets customers open basic checking account with just $5 deposit. There is also a monthly fee but you can waive it off by keeping your balance above $75.

Fort Still National Bank Checking Account Prominent Features

  • Serves civilian and military
  • Minimum $5 deposit required
  • $6 monthly fee
  • $3.5 paper statements per cycle
  • No-cost electronic statement

16. Southwest Financial Federal Credit Union

Good online banking
Swift, handy mobile app
Easy to qualify

The credit union is a considerable option on the list for those who can not qualify for a checking account. With features like mobile app and direct deposits, you can use it as handy bank account till a better option emerges.

Southwest Financial Federal Credit Union Checking Account Prominent Features

  • Comes with online banking
  • Impeccable mobile app

17. GoBank

Waives off monthly charges
ATM located at many places
Allows mobile check deposits

If you make a $500 direct deposit with GoBank, you can avoid its monthly fee of $8.95. Moreover, the bank provides access to widespread ATMS in the US and its app comes with multiple money management tools as well.

GoBank Checking Account Prominent Features

  • Debit card for purchases
  • Free ATM withdrawals
  • 42,000 ATM locations
  • Mobile check deposits
  • Multiple participating retailers for discount offers

18. Varo Bank

No monthly charges
Minimum initial deposit
Quick money deposit

Varo is another option where you can open a checking account without worrying about Chexsystems report. Their service is up to standards with no monthly fees and quick money deposit 24/7.

Varo Bank Checking Account Prominent Features

  • No-charge 55,000+ AllPoint ATMs
  • No initial deposit
  • Quick money deposit
  • No monthly fees

19. Acorns Spend Checking Account

Flexible banking service
Mobile check deposit
Free of overdraft charges

This one is a flexible online checking account that comes with negligible charges and FDIC-insurance. You also get a Acorns debit card when you open the account. Any purchases made via this card are rounded up to nearest dollar.

Acorn Spend Checking Account Prominent Features

  • No overdraft fees
  • Direct deposit allowed
  • Automated bill payment
  • No minimum balance requirement
  • Mobile check deposit
  • Up to $250,000 FDIC-insured

There Are Credit Unions That Don’t Use Chexsystems!

It has not been noticed by many customers yet but, luckily, you can find credit unions that don’t use Chexsystems and provide many benefits that you would otherwise need a bank account for.

For example, Navy Federal Credit Union don’t use Chexsystems and let customers open a new account provided that have served in armed forces, coast guard, or national guard position. Besides those in active duty, veterans and retired military officers are welcomes to join as well!

Why Should You Be Looking For Banks That Don’t Use Chexsystems?

Banks without Chexsystems can still provide you with the basic benefits of having a bank account. This means you will be able to write checks, make use of online banking, get debit card access, and also complete purchases with your bank card with $0 fraud liability.

Also, some of the banks that we will be discussing in the next section do not have a minimum balance requirement neither do they charge any monthly fee!

If you are still wondering how banks without Chexsystems are beneficial, here’s a list of perks that these institutions offer.

A Safe Deposit For Your Money

Perhaps the most basic use of a checking account is to have a spot to save your money. Banks accounts also make it easier to track your remaining balance or to make transactions using mobile app.

Insured Money Savings

These banks may function without Chexsystems but that does not mean they are not FDIC-insured. In fact, you fund deposit up to $250,000 is completely protected.

No-charge Service Fees

Some banks charge when you have to accessing cashing services. Luckily, most of the banks that we have mentioned here do not come with any such fees.

A Good Alternative To Prepaid Debit Cards

Some customers who could not open a bank account, instead rely on debit cards. However, there are many charges associated with the use of such prepaid cards and some even come with high activation fees.

Protections Against Frauds

Having a bank account means your finances as well as bank card will be protected in case it is lost or stolen.

Now you know why second chance checking account are important so let’s have a look at the top 19 options that you have where you can open a online checking account with no Chexsystems and avoid the scrutiny you want to be clear of!

Second Chance Bank Account vs No Chexsystems Bank Account

Some readers may confuse banks that give second chance Checking account to customers with other banks that don’t use credit check.

Although both of these can be helpful when you have been blacklisted, they don’t really work in the same manner.

Attention! A second chance banking system means that the bank uses Chexsystems, it has found your report risky BUT it is willing to give you a chance to improve it.

Second-chance bank accounts can be activated with a minimum balance. However, customers who want to open a checking account need to pay considerable monthly fee.

The good news is that second chance checking accounts have all the benefits you need. They allow for overdraft protection and online bill payment. Moreover, you can upgrade to standard checking account later on.

Prepaid Debit Cards vs No Chexsystems Bank Account

Prepaid debit cards are a good alternative to bank account for people who are having trouble surpassing Chexsystems.

You can deposit money on to the card and then use it for shopping and purchases as you like.

However, the downside here is that debit cards often have high associated fees. You will find yourself paying for monthly maintenance and transaction fees.

Furthermore, there is hardly any debit card that reports to credit bureaus. This means there is not much they can do to improve your credit score or help build positive banking history.

Other Alternatives To Banks That Don’t Use Chexsystems

If you still can’t qualify for banks that don’t rely on Chexsystems and you have run out of prepaid debit card option as well then there is still a little hope left for you!

We have explored some other options besides bank accounts and prepaid debit cards that consumers with poor credit history can try out.

Secured Credit Cards

Secured credit cards come with initial security deposit after which you can use them for purchases just like any other card. They are a great option to improve credit score if you maintain good spending habits and keep paying balances in full.

Foreign Bank Accounts

If the main aim is to have a bank account where you can save your money then creating one in a foreign account makes as much sense. This is because foreign countries often have different approval requirements and they may not look into your Chexsystems records.

Online Services

There are a number of online wallet services like PayPal that let you store cash much like a bank account. For example, you can create Cash App account and transfer funds whenever needed. Moreover, you can also qualify for Cash card that works like debit card and can be used at multiple locations nationwide.

How To Fund Checking Account After Approval

One a no-Chexsystems bank allows you to open a checking account, the next you will be asked to do is deposit some money there. You should check if your account is properly working before transferring any funds.

Deposits can work in both ways, physical deposits as well as online funding. You can also transfer funds to checking account from another account to start things off. This would require you to link the two accounts together.

Pro-Tip! It is always a good practice to transfer small deposits to your new bank account to make sure it is operating without any problems.

Similarly, you can find a checking account by mailing in money order from post office or even grocery stores. Once the funds appear there, you are good to go with your new account!

Method To Dispute An Inaccurate Chexsystems Report

There has been incidences of inaccurate report being compiled by Chexsystems so it would be beneficial to know that you do have the liberty to dispute information given there. However, it is better to do this only when you are sure that the data is, in fact, incorrect.

Once the dispute is opened, the issuing bank as well as the Chexsystems itself are supposed to investigate under Fair Credit Reporting Act, and rectify any mistake that might have been made.

Method To Remove Items From Chexsystems

Inaccurate items can be removed from Chexsystems report if you know how to follow the right protocol. Here’s what you need to do if a false information has been added on to your report by the agency.

Obtain Your Chexsystems Report

The first step towards fixing any issue is to obtain a copy of your report from the agency. Each customer has the right to get one free report each year.

You can call 800-428-9623 or complete the complete the consumer disclosure for online on their official website to get a copy of your Chexsystems report. Users can also print the form, fill it out and send it to the following address if they wish to obtain their report by mail.

“Chexsystems Inc., Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN, 55125.”

Identify and Dispute Errors

You have to identify the incorrect information before you open a dispute. The easiest way to do it is by submitting request via online dispute system.

Nonetheless, customers can also initiate dispute by sending in the form via fix or mail to the same address mentioned above. The “request for investigation form” is present online and can be downloaded by anyone who wishes to remove some sort of data from their Chexsystems report.

Note! If the negative item you have disputed turns out to be correct, it will not be removed from your report and there is nothing you can do about it. In case of a debt, you can negotiate with the lender to settle it and then request Chexsystems to update the records.

Request Chexsystems For An Update

The final step is to obtain the confirmation that either your information was actually incorrect or you have paid off the debt to the creditoru.

The copy of this confirmation should to be sent Chexsystems along with the request to update your records. You are done!

The Bottom Line

Hopefully our list will help you find a bank in this tough time but it is always a better alternative to avoid being in this situation altogether.

Chexsystems is an extensive database for customers evaluation and you should always try your best to be in the good books of such financial institutes.

Frequently Asked Questions

Is it possible to open a bank account if you have been blacklisted by Chexsystems?

Yes. You can still open a bank account or a checking account in banks that don’t use Chexsystems or those in foreign countries. Moreover, the option of opening a checking account is also possible if you can find a few financial institutes that don’t use Chexsystems.

Can you get your name removed from Chexsystems?

You have to obtain the confirmation that data in your records is incorrect. After that, the Chexsystems and the bank will look into your dispute and update your records if needed. In case the data is correct, the negative information will stay on your report.

How long will Chexsystems stay on my record?

The current policy states that the information will stay on your record for 5 years unless it proven to be incorrect and removed via dispute.

How can you make sure that you are on Chexsystems?

You can find out by calling 800-428-9623 or visiting their official website.

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