BRADEN SMITH is a Finance undergraduate with a major interest on banking and personal finance. He enjoys spending his time towards school and his blog.
If you’re looking for a second chance bank, it seems that you’re in luck. We’ll go over the few credit unions and banks that don’t use ChexSystems, allowing for anyone to acquire a no credit check bank account.
What is ChexSystems?
ChexSystems is a consumer credit reporting agency responsible for check verification services in relation to depository accounts. This means that as consumers open and close bank accounts, ChexSystems is used to monitor transactions, keep consumer records, conduct identity verification, and provide guidance for banks about new clients.
80% of banks and credit unions within the United States rely on ChexSystems to screen applicants for new checking and savings accounts. Over 9,000 banks and 100,000 individual bank branches utilize ChexSystems for their services, leading to over 7.3 million consumer bank accounts being closed for violating different banking policies.
What is a ChexSystems Report?
A ChexSystems report contains positive and negative banking information submitted by credit unions and banks in which the consumer held accounts within the last five years. Negative remarks may include check overdrafts, suspicious account handling, unsettled balances, depositing fraudulent checks, and more.
The 80% of Banks and credit unions who use ChexSystems are likely to refuse service to individuals with a negative report, leading to the denial of new checking and savings accounts.
Who Would Benefit from a Non-Chexsystems Bank Account?
Considering 20% of banks and credit unions don’t use ChexSystems, those in need of a second chance bank account can take advantage of this opportunity. Some financial institutions refuse to use ChexSystems for a host of different reasons. This is good for individuals with negative or derogatory marks on their ChexSystems report.
If you’ve had a checking or savings account closed for whatever reason, be it voluntarily or forced, you can count on banks that don’t use ChexSystems verification. Non-ChexSystems banks may have higher monthly fees and requirements than banks that do use ChexSystems, but it can be beneficial for those who have difficulty securing any type of depository account.
6 Popular Banks that Don’t use ChexSystems
We’ll go over what each bank or credit union offers each new account holder, highlighting the best things with each checking account, and providing a link to find out more about each one.
1. Capital One
The Capital One 360 Checking® account avoids ChexSystems reporting and offers a variety of different accounts for individuals needing a second change bank account.
- Free Online and Mobile Checking
- Fee-Free Structure
- No Balance Minimums or Limits
- 39,000 Free ATMs
- Online Bill Pay
- Mobile Check Deposit
- Flexible Overdraft Options
- Earn up to 1.00% Interest (APY)
Quick Review: Capital One is one of the highest rated banks that don’t use ChexSystems and offers many perks along the way. 360 Checking® allows consumers to earn a competitive interest rate on the money that sits in their accounts, which is great for keeping up with inflation. Another attractive feature that Capital One offers is the flexible overdraft options for individual accounts. Auto-declining, Free Savings Transfers, Overdraft Line of Credit, and Next Day Grace are great programs to opt-in to. Learn more about Capital One Overdraft Options.
Chime is an online-only consumer bank that offers checking accounts without ChexSystems credit checks. While Chime is a simple solution for online banking, it takes less than two minutes to sign up.
- Receive Paycheck 2 Days Earlier
- No Monthly Fees
- $0 Required Minimum Balance
- No Hidden, Overdraft, or Foreign Transaction Fees.
- 38,000 Fee-Free MoneyPass® ATMs
- Mobile Daily and Balance Notifications
- Automatic Savings Programs
- Chime Visa® Debit Card
Quick Review: Chime offers one of the fastest-growing bank accounts in America that doesn’t use ChexSystems. The entire process is simple and sleek with its mobile banking app that offers real-time notifications 24/7. Direct deposit can allow for paychecks to be spendable 2 days earlier than other banks. Chime does a great job at keeping all fees transparent, by letting everyone know that they don’t charge hidden fees. This includes overdraft fees, minimum balance fees, monthly service fees, and even foreign transaction fees. Learn more about getting paid early.
3. TD Ameritrade
TD Ameritrade is not considered a consumer bank, but instead a brokerage. Normally used for investments and retirements, TD Ameritrade can be used for cash management. ChexSystems does not apply to this brokerage.
- ATM Fees Reimbursed Nationwide
- No Monthly Maintenance Fees
- Free Online Bill Pay
- Unlimited Check Writing
- Added Convenience for Apply Pay®
- Mobile App Check Deposits
- Earn Interest
- Added Rewards Program
Quick Review: TD Ameritrade provides a great alternative to traditional consumer banks and credit unions by offering cash management services in-line with their investment products. This means that money can be transferred easily between accounts and can be done instantly, without fees. Earning interest is also a great perk TD Ameritrade offers, while overall not using ChexSystems, letting anyone use their platform.
4. Wells Fargo
As one of the biggest banks within the United States, Wells Fargo offers an Opportunity Checking® product for individuals trying to avoid ChexSystems or need a second chance bank account.
- Free Mobile Banking
- Standard Banking Features: Checks, Debit Card, Bill Pay
- Very low initial deposit at $25
- Easily Avoid: Monthly Service Fees
- Platinum Debit Card
- 5,800 Branches Nationwide
- 13,000 ATMs
Quick Review: For those unable to open standard accounts, the Wells Fargo Opportunity Checking® product is the perfect solution. The monthly fee can easily be avoided by completing one of these three methods. Either have 10 posted debit card purchases or payments, have direct deposits totaling $500 or more, or lastly have a minimum daily balance of $1,500. As long as the account is being used on a weekly or semi-weekly basis, these methods of avoiding a fee are easily attainable.
5. United Bank
With only about 150 locations throughout the United States, United Bank doesn’t use ChexSystems for credit reporting verification for its United Free Checking accounts.
- United Visa Check Card®
- Free E-Statements
- Free Mobile Banking with Check Deposit
- Free Online Banking with Bill Pay
- Apple Pay®, Android Pay®, and Samsung Pay® compatible
- No Minimum Balance
- No Monthly Cycle Service Charge
Quick Review: United Bank is an attractive choice for individuals looking for a non-ChexSystem bank account, but lacks the rewards compared to other alternatives. Once a relationship has been established with United bank, credit cards and lending products could be a great way to improve credit score and trust.
6. Navy Federal Credit Union
As one of the largest credit unions that offer services to Active Duty, Reservist, and Veteran service members, Navy Federal Credit Union opts-out of ChexSystems type reporting.
- Thousands of free ATMs
- Free Bill Pay
- Online Statements
- Free Mobile Banking App
- Free Online Banking Website
- Free Mobile® and Scan Deposits
- Earn 0.05% Dividend (APY)
- No Monthly Fee
Quick Review: Navy Federal Credit Union does a great job at offering past and present service members a great banking platform that doesn’t use ChexSystems. This credit union puts a lot of trust in the members and offers plenty of great perks like free ATMs and mobile banking. This is very convenient and won’t cost a dime since there’s no monthly fee.