Credit Mashup

February 2024 Top 25 Banks That Don't Use ChexSystems

list-of-banks-that-dont-use-chexsystems
Find out why these 25 banks that don't use ChexSystems are best choice for people looking for no credit check banking options.

February 2024 Top 25 Banks that Don't Use ChexSystems

Find out why these 25 banks that don't use ChexSystems are best choice for people looking for no credit check banking options.

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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.

No credit check banks give an opportunity to people having difficulty opening a bank account due to ChexSystems or Early Warning Service (EWS).

25 Banks That Don't Use ChexSystems or EWS

Over 80% of banks and credit unions use ChexSystems, a credit check or EWS as a way to evaluate the risk of potential customers.

That's why we've compiled an up-to-date list of the best banks with no ChexSystems to help unbanked people get a second chance. The list includes banks that don't use EWS if you've been flagged in that database too.

1. Upgrade Rewards Checking Plus

upgrade-rewards-welcome-bonus

People looking for online banks that don't use ChexSystems should put Upgrade at the top of the list. With free checking, no overdraft fees and fee-free ATMs, Upgrade's checking account offers attractive benefits to step back into banking. Upgrade Rewards Checking Plus best features:

  • Customers get up to 2% cash back on common everyday expenses for active accounts with a monthly $1,000 direct deposit 1.
  • $0 Minimum Opening Deposit.
  • Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases2.
  • Optional savings account that earns 5.21% APY3.
  • Customers with direct deposit can get paid up to two days early4.
  • No monthly fees, no overdraft fees5, and get reimbursed for ATM fees with an active account.
  • FDIC-Insured Up to $250,000.

APPLY NOW

Upgrade is a financial technology company, not a bank. Checking and savings accounts provided by Cross River Bank, Member FDIC.

2. SoFi Bank Checking & Savings

The joint Checking and Savings Account at SoFi comes with no overdraft fee and no monthly fees, it's one of the few online banks no ChexSystems that offers a welcome bonus. New members can earn a $25 bonus by making an opening deposit of $10. 

Earn an additional bonus up to $300 by setting up a qualifying direct deposit. SoFi Bank's welcome bonus makes it one of the best ChexSystems alternative banks to open a checking and savings account.

  • Monthly fees: $0
  • Minimum opening deposit: $10
  • Interest earned with direct deposit: 4.60% APY on savings balances and 1.20% APY on checking balances
  • Interest earned without direct deposit: 1.20% APY on all account balances in checking and savings
  • Free ATMs: 55,000+ fee-free ATMs.
  • Early paycheck: Get paid up to 2 days early with direct deposit.
  • Free Overdraft: No-fee Overdraft Coverage with qualifying monthly direct deposit
  • Savings Vaults: Create unlimited savings vaults for your specific needs like rent, travel, major purchase, or emergency fund. This feature offers a convenient alternative to people using the cash stuffing budgeting method.
  • FDIC insured: Yes

APPLY NOW

3. OneUnited Bank

OneUnited Bank's Online Checking Account is available to people in ALL STATES. As one of a few online banks that accept bad credit, OneUnited 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).

  • Monthly fees: $0
  • Minimum deposit: $25
  • Free ATMs: Obtain cash, surcharge free at over 100,000+ ATMs
  • Cash-Back Rewards: Up to 20% cash-back in different categories like food, hair products, hotels, cosmetics, home goods.
  • Early direct deposit: Get paid up to two days earlier with direct deposit
  • More OneUnited Bank Features: Cash advance feature called “CashPlease” that offers a short-term loan up to $1,000 without a credit check
  • FDIC insured: Yes

»See Full OneUnited Bank Review

APPLY NOW

4. Consumers Credit Union

Consumers Credit Union is a credit union based in Illinois with membership open to anyone regardless of where they live or work. Financial products and services include checking, savings, CDs, personal, auto and mortgage loans, small business banking, investments and financial education. The monthly free checking account is called Rewards Checking with the following features:

  • Unlimited reimbursement for any and all ATM fees**
  • Over 30,000 ATMs & over 5,000 shared branches
  • Online & mobile banking plus bill pay
  • Get paid as much as two days early with early direct deposit**
  • No monthly maintenance fees, for anything

APPLY NOW

5. Albert Banking

With Albert, people looking for a second chance banking opportunity can open an account with no minimum deposit requirement. 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.

  • Monthly fees: $0
  • Minimum deposit: $0
  • Cashback: Earn cashback on gas, groceries, delivery, and more.
  • Early direct deposit: Receive pay up to two days earlier with direct deposit
  • More Albert Features: Save and invest right in the Albert banking app
  • FDIC insured: Yes

APPLY NOW

Albert is not a bank. Banking services provided by Sutton Bank, Member FDIC

6. mph.bank

mph.bank is a digital bank backed and run by Liberty Savings Bank, a 135 year old FDIC-insured bank since 1889. mph.bank's Fresh digital checking account allows people with past ChexSystems issues to start on a path to a solid financial future.

  • Monthly fees: $9.00 a month service fee
  • Minimum deposit: $25
  • Early paycheck: Get your pay up to 2 days early with direct deposit
  • Zelle: A fast, safe and easy way to send and receive money with friends, family, and others.
  • ATM Access: 55,000 Free AllPoint ATMs
  • Save for goals: Create unlimited savings accounts for your specific goals and earn 1.00% APY on your balances. This feature offers a convenient alternative to people using the cash stuffing budgeting method.
  • FDIC insured: Yes

APPLY NOW

7. Acorns Checking Account

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.

  • Monthly fees: $3 per month for an individual account or $5 for families
  • Minimum deposit: $10
  • Cashback: The Acorns marketplace gives customers a small percentage cashback on purchases made at hundreds of major retailers, including Walmart
  • Early direct deposit: Receive pay up to two days earlier with direct deposit
  • More Acorns Features: All Acorns banking customers get a heavy metal laser engraved Acorns Visa™ debit card
  • FDIC insured: Yes 

APPLY NOW

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

8. Axos Rewards Checking

business-checking-account-bonus

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.

  • Monthly fees: $0
  • Minimum deposit: $50
  • ATM Fees: Customers get unlimited reimbursements of ATM fees in the US
  • Overdraft: Zero overdraft or NSF fees
  • FDIC insured: Yes

APPLY NOW


9. NorthOne Business Checking

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 its business by saving money and using valuable rewards offered by NorthOne. You’ll need a few things to complete your application:

  • Monthly fees: $10
  • Business Information. If your business is an LLC or corporation you will need an EIN to apply.
  • Personal Information. If your business is not an LLC or corporation, you'll need to provide a social security number on your application for ID verification purposes.
  • One-person business welcome. It's a good move for solo entrepreneurs to open a business checking account separate from a personal checking account.
  • FDIC insured: Yes

Features to help manage your small business:

  • Automatic budgeting: Budget and plan for business expenses with NorthOne envelopes
  • Business debit cards: Tap, swipe and buy online with a Mastercard business debit card
  • Payment tools: Send ACH and wire transfers from your phone or laptop
  • Welcome bonus: For a limited time, get a $20 credit when you open and fund a new NorthOne Account.
  • FDIC insured: Yes

APPLY NOW

NorthOne is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A., Member FDIC

10. Novo Business Checking

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.

  • Digital tools: Streamlined financial processes that connect to thousands of business apps
  • Minimum deposit: $0
  • Customer service: Human-powered customer service
  • Perks: Thousands of dollars in exclusive perks
  • More Novo Features: Free transfers, mailed checks, and incoming wires

APPLY NOW

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. 

  1. Current – Online only free checking account with early direct deposit up to two days.
  2. Axiom Bank – Opportunity Checking gives people a second chance at banking with no minimum balance and unlimited check writing.
  3. Capital One 360 – 360 Checking comes an award-winning app to pay your bills, make deposits, and transfer money.
  4. Varo – An online FDCI-Insured bank that started as a fintech in 2015 and offers checking and savings account.
  5. Corporate America Family Federal Credit Union – CAFFCU is a financial institution that serves the employees and families of select companies and organizations. It has locations in Arizona, California, Connecticut, Georgia, Illinois, Kansas, North Carolina, Ohio, Pennsylvania, Texas, and Virginia.
  6. First American Bank – Build a stable banking history with a checking account to get you back on track.
  7. GenFed Financial Credit Union – GFCU is a member-owned financial cooperative that provides a variety of banking services to its members including loans, savings accounts, and other financial products. It has branches in Illinois, Indiana, and Ohio.
  8. HomeStreet Bank – HomeStreet Bank offers a range of financial services including checking and savings accounts. They have locations in California, Hawaii, Oregon, and Washington.
  9. Navy Federal Credit Union –If you qualify for membership you have 4 different checking accounts with no ChexSystems to choose from.
  10. MidWest America Federal Credit Union – MAFCU offers checking and savings account options and more to members in Illinois, Indiana, and Kentucky.
  11. Republic Bank – Republic Bank is a non-ChexSystems bank that operates in Kentucky and Indiana.
  12. UNIFY Financial Federal Credit Union – UNIFY has locations in Alabama, Arkansas, California, Colorado, Georgia, Indiana, Kentucky, Michigan, Mississippi, New Jersey, Tennessee, Texas, Utah, Virginia, and West Virginia.
  13. 1st Convenience Bank – 1st Convenience Bank is a retail bank located in New Mexico and Texas.
  14. United Bank – United Bank doesn’t use ChexSystems or a credit report to approve applicants. They offer three different checking accounts.
  15. Renasant Bank – Renasant Bank is a regional bank based in the southeastern United States. It offers a range of financial services including personal and business banking, loans, and insurance.

Exactly What Is ChexSystems?

ChexSystems is a consumer reporting agency that provides information to banks and other financial institutions about the banking history of its 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.

Negative Banking Activity That Can Appear In ChexSystems Reports:

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

But be aware that ChexSystems is not the only consumer reporting agency that may contain negative banking activity. Here are two additional agencies that collect and maintain consumer banking history:

Early Warning Services (EWS)

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

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.

What To Do When Reported To ChexSystems?

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.

How Far Back Does ChexSystems Go?

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. 

Do Banks Run Credit Reports?

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.

Banks That Don't Use ChexSystems vs. Second Chance Banking

Here is a quick look at differences in a Non-ChexSystems vs. second chance bank accounts.

Banks that don't use ChexSystems

  • Non-ChexSystems banks simply don't use ChexSystems to verify new accounts – but they may use other consumer reporting agencies such as EWS, Telecheck or a credit check to verify new accounts.
  • Customers have very few, if any account restrictions.
  • Free monthly checking may be offered.
  • Overdraft protection may be offered.
  • High daily debit card withdrawal limit.
  • High ACH transfer limit per day.
  • Unlimited check writing privileges.

Second Chance Banking

  • Your ChexSystems report is typically checked.
  • When a bank or credit union offers a second chance checking account, they're willing to overlook a problematic ChexSystems record.
  • A monthly service fee is typically required.
  • Check writing privileges may be restricted.
  • Account is closely watched for the first 12 months.
  • Account can be upgraded to regular checking after 12 months if managed well.
  • Overdraft protection may not be offered.
  • A financial literacy class may be required prior to opening new account.

7 Benefits of banks that don't use ChexSystems

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:

  • Save on check-cashing fees. Save money over time by not having to use check-cashing services. For example, Walmart charges $4 for cashing checks of up to $1,000.
  • Avoid prepaid debit card fees. Avoid the myriad of fees that often come with prepaid debit cards. For example, Netspend's monthly fee is $9.95 without Pay-Go, the reload fee is up to $3.95, and the ATM withdrawal fee is $2.50. As you can see, there is no way to avoid some kind of fee with prepaid debit cards.
  • Keep your money safe. Enjoy a safe and convenient place to stash your cash. It may sound strange, but not everyone saves money in a bank, which could prove dangerous. There have been several stories where people have lost money saved at home during a fire, even when the money was kept in a safe. If you only have a savings account for bad credit that would be better than a mattress or an at-home safe.
  • Your money is insured. Have the confidence in knowing your money in banks is FDIC-insured up to $250,000.
  • Built-in fraud protection. Purchases made with bank debit cards offer zero liability for fraud.
  • Become BFFs with your bank. Establish a relationship with your banker. When you engage in relationship banking your banker may approach you with better offerings on loan rates, insurance, investments, and certificates of deposit.
  • Get a mortgage loan. Mortgage lenders require you to provide recent bank statements when applying for a mortgage loan. Prepaid debit cards are not the same as having traditional bank statements.

Best practices to manage checking accounts

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:

  • Keep track of your balance and any outstanding payments.
  • Open and review all bank statements and correspondence.
  • Avoid spending more than you have in your account.
  • Monitor your account online or on your phone before you withdraw cash at an ATM.
  • Check your balance by phone or online before you write a big check or make a big payment.
  • Sign up for transaction alerts and low-balance warnings via e-mail or text.
  • Don’t assume that the money you deposited is available immediately.
  • Find out when the money you deposit will be available for your use.
  • If there is a “hold” on a deposit, make sure you know when it will be lifted.
  • Avoid making a payment using your checking account unless you know for sure the money is in your account.

Best Banking Practices For People In ChexSystems

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:

  • Have more than one banking option. Don't put all your eggs in one basket. Banks will sometimes conduct ChexSystems sweeps on existing customers. Bank sweeps can close accounts without warning, even if your account is in good standing. It’s dangerous to have all of your money in one place. If a bank closes your account, they can freeze your money up to 30 days. 
  • Split direct deposits between two checking accounts. That way you'll have access to some funds if one of the accounts is frozen or becomes temporarily inaccessible.
  • Immediately report any fraudulent activity you may discover on your accounts. “Suspected fraud” and “ChexSystems account abuse” seem to be the go-to reasons banks report customers to ChexSystems and Early Warning Services – even when no such activity occurred.
  • Close your account the right way. If you close your account, continue to monitor it for several months to ensure there are no unpaid charges, fees, or overdrafts.
 

More ChexSystems Resources

Upgrade Disclaimers

1 Active Accounts with a monthly direct deposit of $1000 are eligible for additional benefits on Rewards Checking Plus such as additional cash back rewards, ATM fee reimbursement, and more. See the Active Account page for more information.

2 Rewards Checking Plus customers who set-up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.

3 The 1.5% Annual Percentage Yield (APY) for the Performance Savings account is effective as of June 1, 2023. The APY for the Performance Savings account is variable and may change at any time. Active Accounts qualify for 5.07% APY with monthly $1000 direct deposit. The APY for Active Accounts is effective as of September 1, 2023, is variable, and may change at any time. Please refer to the applicable Cross River Bank Performance Savings Deposit Account Agreement and Truth in Savings Disclosure. To earn APY, you must open and fund a Performance Savings account. Rewards Checking Plus accounts do not earn APY.

4 Early direct deposit requires set up of recurring electronic direct deposit from your employer, payroll, or benefits provider and is limited to direct deposits under $5000. Early access to direct deposit funds depends on the timing in which we receive notice of impending direct deposit, which is generally up to two days before the scheduled deposit date.

5 There are no overdraft fees or annual fees associated with Rewards Checking Plus accounts. Rewards Checking Plus charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. For Active Accounts, Upgrade will rebate ATM fees charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month on a Rewards Checking Plus account, the account must be an Active Account in the prior calendar month. See the Active Account page for more information. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for 60 days after account opening regardless of account user status. Some limitations apply. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.

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