When someone is reported to ChexSystems, it means that their bank or financial institution has provided negative information about their account activity, such as bounced checks, overdrafts, or unpaid fees.
Banks that don't use ChexSystems offer a great option for anyone having difficulty opening a bank account due to ChexSystems.
Second chance banking options are also available as a means to get people back in the banking system even with negative items on their ChexSystems report.
Over 80% of banks and credit unions use ChexSystems as a way to evaluate the risk of potential customers and protect themselves against financial loss. That's why we have compiled an up-to-date list of banks that do not use ChexSystems to help people open a bank account.
Here are the Best Banks With No ChexSystems you can start using today:
People looking for banks that don't use ChexSystems should put Chime at the top of the list. With free checking, no overdraft fees and over 60,000 fee-free ATMs, Chime's checking account has attractive benefits to step back into banking. Chime's best features:
»See Full Chime Review
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC
The joint Checking and Savings Account at SoFi comes with no overdraft fee and no monthly fees. New members can earn a $25 welcome bonus by making an opening deposit of $50 using a debit card or by making an opening deposit of $10 by linking to an external bank account. Earn an additional bonus up to $250 by setting up a qualifying direct deposit from an employer, payroll, retirement pension, or benefits provider.
OneUnited Bank's Online Checking Account is available to people in ALL STATES. Customers can add cash to the OneUnited Bank Debit Card at over 90,000 locations across the country through a partnership with Green Dot®. To get started go to the “Get the Card” button, enter your name, email address and cell phone number. Choose the Black Wall Street Checking account option along with the opening deposit, then complete your identification details (name, address, SSN, and employer).
»See Full OneUnited Bank Review
With Albert, there is no minimum deposit requirement to open an account. The Albert Genius feature analyzes your income and spending to find extra dollars to save automatically. All funds are insured up to $250,000 through federally backed FDIC protection. Albert will spot you up to a $250 cash advance with no credit check, interest or late fees.
Albert is not a bank. Banking services provided by Sutton Bank, Member FDIC
Go2bank provides a range of financial services, including a checking account, savings account, and debit card. Go2bank also offers various features like early access to paychecks, cashback rewards on certain purchases, and the ability to deposit checks remotely using your mobile device.
Acorns is primarily a money app that helps you invest and save. Acorns offers an FDIC-Insured Checking Account that does not use ChexSystems or pull a credit report. The Acorns app has tools to benefit your overall financial well-being by investing your spare change, managing everyday banking transactions, saving for retirement, and growing your wealth building knowledge.
Acorns is not a bank. Acorns Visa™ debit cards are issued by Lincoln Savings Bank or nbkc bank, Members FDIC for Acorns Checking account holders
The Axos Rewards Checking account is a good choice for no-fee banking. There are no monthly maintenance fees, competitive cash back rewards, and customers have access to over 91,000 fee-free ATMs across the U.S.
M1 Plus Checking Account offers digital banking that integrates with investing. Customers get a high-yield checking to help fuel long-term financial strategy. Customers earn 1% cashback on eligible purchases made with your M1 Finance debit card plus up to 4 ATM fee reimbursements per month.
M1 is not a bank. M1 Checking Accounts furnished by Lincoln Savings Bank, Member FDIC. M1 Visa® Debit Card is issued by Lincoln Savings Bank, Member FDIC
NorthOne offers free online business checking with 2.2% cashback rewards. Small business owners that need a business bank account with no ChexSystems can grow their business by saving money and using valuable rewards offered by NorthOne. You’ll need a few things to complete your application:
Features to help manage your small business:
NorthOne is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A., Member FDIC
Novo offers digital banking for businesses that integrates with additional business tools. Novo's free business checking account offers no monthly fees and unlimited refunds for ATM charges. Customers get immediate access to their funds with The Novo Virtual Card.
Novo is a fintech, not a bank. Deposit account services provided by Middlesex Federal Savings, F. A.; Member FDIC. FDIC Insurance through Middlesex Federal Savings and virtual cards provided by Patriot Bank, N.A.; pursuant to Mastercard International.
ChexSystems is a consumer reporting agency that provides information to banks and other financial institutions about the banking history of their potential customers.
ChexSystems maintains an enormous database of information on consumers who have had bank accounts closed due to mismanagement or who have a history of bounced checks or other banking problems. How ChexSystems works is when someone applies for a new bank account, the bank can instantly check ChexSystems to see if the applicant has a history of financial mismanagement.
Pulling a ChexSystems report can affect the bank's decision to approve or deny the application for a bank account.
Early Warning Services (EWS) is a private financial services company owned by seven major banks that include Bank of America, BB&T (now Truist), Capital One, JPMorgan Chase, PNC Bank, US Bank, and Wells Fargo.
EWS provides fraud prevention, risk management, and payment processing solutions to financial institutions, government entities, and businesses.
Negative EWS records can prevent you from opening a bank account just like ChexSystems.
TeleCheck is a payment processing company that provides check verification and guarantee services to merchants, businesses, and other organizations.
When a customer writes a check, TeleCheck verifies the customer's information, including their identity and bank account information, to ensure that the check is valid and can be processed.
There are some credit unions that pull a Telecheck report to issue checks when you apply for a checking account.
Being reported to ChexSystems could mean you are prohibited from opening a bank account online or in person. Take steps to get removed from ChexSystems if you discover errors.
You have a right to dispute both ChexSystems and the bank that reported the account if you believe an item on your ChexSystems report is inaccurate. The Fair Credit Reporting Act requires ChexSystems and the bank to adhere to investigation requirements for any disputed item. Inaccurate items must be removed.
ChexSystems disputes are just like credit disputes in that you must take the same steps to remove negative records.
Once you land in ChexSystems that negative notation remains for 5 years from the date the bank reported you. Although the Fair Credit Reporting Act allows ChexSystems to keep records for up to seven years, the agency only keeps them for five.
Banks typically do not run credit reports to open checking accounts unless it's to verify your identity. When you open a checking account, the bank will usually ask you to provide identification, such as a driver's license, and may also ask for your Social Security number.
The bank may then use this information to verify your identity using a credit bureau like Experian, Transunion or Equifax.
Having bad credit may not necessarily prevent you from opening a new bank account. But if you were to apply for overdraft protection, your credit history may be considered.
Here is a quick look at differences in a Non-ChexSystems vs. second chance bank accounts.
There are real benefits to having a traditional checking and savings account that banking alternatives like prepaid debit cards or check-cashing services just can't offer. Here are just a few benefits of banks that don't use ChexSystems:
It's difficult to find banks that don't use ChexSystems, so when you do open a new checking account, carefully manage it in order to keep it open. When you manage your account, you can avoid unnecessary fees, being reported to ChexSystems or Early Warning Services. Here are actions to take for good checking account management:
Managing a bank account comes with great responsibility, especially when you've been reported to ChexSystems.
Once you get to enjoy the freedom to make purchases, pay bills and have peace of mind that your money is safe, it's still important to be diligent about monitoring your account and avoid risky activity, for example:
Get tips to deal with ChexSystems and improve your ChexSystems score.
Second chance bank accounts near you may use ChexSystems to screen new customers but offer fresh start checking accounts. Second chance banks offer checking accounts that give consumers an opportunity to rebuild their banking history. When a bank or credit union offers a second chance checking account, they're willing to overlook a problematic ChexSystems record.
You can expect to pay a monthly checking fee with second chance checking accounts but most give customers an opportunity to upgrade to a regular checking after 12 months of responsible account management.
1 Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month and Visa debit card activation. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See terms and conditions.