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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).
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.
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:
Upgrade is a financial technology company, not a bank. Checking and savings accounts provided by Cross River Bank, Member FDIC.
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.
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).
»See Full OneUnited Bank Review
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:
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.
Albert is not a bank. Banking services provided by Sutton Bank, Member FDIC
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.
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.
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:
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 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.
Pulling a ChexSystems report can affect the bank's decision to approve or deny the application for a bank account.
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) 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.
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:
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.