Best Banks That Don’t Use ChexSystems In February 2024

Are you looking for Banks That Don’t Use ChexSystems? Here’s your answer.

Our efforts to manage money can sometimes fail, no matter how hard we try. Everyone experiences a financial crisis at some point in their lives, whether because of poor judgment or other circumstances. You’re not alone if you need to open an account at a bank or credit union without checking your credit history after experiencing some sort of financial difficulty.

You will find a list of Banks That Don’t Use ChexSystems reports for their applicant screening. When you’re rebuilding your credit and getting back on your feet financially, this can be helpful. There may be restrictions and fees associated with these banks, but when it comes to second chances, they’re a great option.

In case these banks or credit unions do not meet your needs, we’ll also show you what alternatives there are. 

The given article will provide you with all the information regarding the Banks That Don’t Use ChexSystems, how to choose one, and much more. Our first stop should be ChexSystems. 

What is ChexSystems?

Before heading into Banks That Don’t Use ChexSystems? First, discuss what ChexSystems is.

The ChexSystems corporation is owned by the Fidelity National Information Services, Inc. subsidiary eFunds. Consumer banking data is collected by the agency and reported to financial institutions in accordance with the Fair Credit Reporting Act.

A ChexSystems report is similar to the report compiled by a credit bureau, such as Experian, which helps banks predict and prevent risks based on your banking behavior as a consumer. The reports from ChexSystems include information about new and closed accounts, as well as information about overdrafts, bounced checks, and involuntary account closures.

A bank or credit union may deny your application for a new account if your ChexSystems report shows negative information.

The good news is that some banks offer two-chance Banks That Don’t Use ChexSystems or are more lenient when it comes to bad credit reports. Those with less-than-perfect bank records may qualify for these checking and savings accounts.

Why Do Banks Use ChexSystems?

The ChexSystems reports are used by banks as risk management tools. Banks consider people who have defaulted or committed fraud before more likely to repeat these actions. Banks would be at risk if they allowed them to open accounts.

According to the FDIC, 14% of households with no bank accounts cited negative reports as their reason.

It’s important to note that not all ChexSystems activities are negative. ChexSystems reports may result in a bank automatically denying an application based on the number of previous accounts listed on the report.

The good news is that you can usually resolve this issue by contacting your bank directly, finding credit union Banks That Don’t Use ChexSystems, or considering a second-chance account.

Ensure that the information contained in your ChexSystems report is accurate before looking for alternatives.

The ChexSystems website allows you to order one free report per year, and if the information in the report causes you to be denied a bank account, you can request a second free report. There is a disputed feature on the ChexSystems website if you find any inaccurate information.

How Does ChexSystems Work?

The activity of your deposit account is monitored by ChexSystems in the same way that your credit activity is monitored by Experian. 

Those who have a deposit account are given a report from the company. It is possible that your ChexSystems report contains the following items:

• A misuse of ATMs and debit cards
• Check bounces and negative balances
• Account balances that are negative but unpaid
• Deposit account information about involuntary closures
• Information about identity theft and fraud

ChexSystems does not include positive ratings regarding deposit account behavior, unlike other credit reporting agencies.

It includes only negative behavior in a ChexSystems report. There have been criticisms of this practice in the past, which caused ChexSystems to change how long negative items are kept on reports. 

Top 10 Banks That Don’t Use ChexSystems

There are several Banks That Don’t Use ChexSystems, some of which are given below:

Navy Federal Credit Union

NavFCU provides credit union services to active duty and retired members of the Department of Defense (DoD), the Armed Forces, and the National Guard and their families. This company offers several products and services related to personal finance, including deposit accounts, loans, and credit cards.

ChexSystems is not pulled by Navy FCU. The representative explained that when you apply for an account, a soft credit check will be done to verify your identity. There are several free checking accounts, such as EveryDay Checking, which offers APY and dividends with no monthly fees.

• No maintenance fee per month
• Balance requirement – $0
• Free personalized checks
• APY – 0.05 percent
• Rate of dividends – 0.05 percent 

U.S Banks

The Safe Debit account from U.S. Bank is a check-free account option. A bank representative said it does not use ChexSystems to approve or deny Safe Debit accounts.

The account may not have as many features as a standard checking account, but at least you can pay bills and manage your cash. Your credit score will also be available to Safe Debit account holders for free so you can track your progress.

• A minimum deposit of $25 is required for opening.
• A minimum balance is not required
• The monthly maintenance fee is $4.95

Chime

Chime offers the Secured Chime Credit Builder Visa Credit Card as part of their financial technology company. You won’t have to pay any annual fees, credit checks, or interest charges with this card. Additionally, you won’t be charged a monthly service fee or a minimum opening deposit. Overdraft fees and foreign transactions won’t be charged by Chime, and you’ll get your paycheck up to two days early if you set up direct deposit.

You can also make cash deposits at over 60,000 ATMs nationwide for free. You don’t have to pay any monthly fees, you can withdraw your money early, there is no minimum initial deposit, there is no minimum balance charge, and there is no overdraft charge when it comes to these accounts. Additionally, Chime customers have access to over 60,000 fee-free ATMs. 

• There is no minimum opening deposit
• The minimum balance requirement is $0
• There is no monthly maintenance fee
• A non-interest-bearing loan
• ATM usage is free within the network

SoFi

Customers of SoFi Money can earn up to $100 if they meet various requirements, and the company has over 2 million customers in the United States. A direct deposit bonus is available when you enroll in direct deposit and deposit $1,000 or more within 30 days.

The Sofi Money company is not a traditional bank. The Federal Deposit Insurance Corporation insures all deposits because it is backed by several banks.

It’s useful to keep off the ChexSystems radar by using the SoFi Checking and Savings cash management account. A direct deposit will even earn you a competitive APY. In spite of the fact that SoFi is not a bank, your money is FDIC-insured when it arrives at SoFi’s bank partners.

The following are the benefits of this online-only option:

• There is no monthly maintenance fee
• There are no overdraft fees
• Offers of multiple backs
• The interest rate is 0.01%

Go2Bank

Go2Bank (formerly GoBank) is a member of the GreenDot family and confirmed with a representative that it is not affiliated with Chexsystems. The GoBank platform offers some useful benefits for personal checking and high-yield savings.

Thousands of retailers such as Walmart, CVS, and Dollar General accept the service and let you upload cash to your bank account early. The company also offers a debit card, a personal check-writing capability, and mobile deposits. Additionally, you can send and receive money online and pay bills.

• Direct deposit waives monthly fees of $5
• There is no minimum deposit
• There is no minimum balance
• If you buy electronic gift cards at participating retailers, you’ll earn up to 7% cash back on your purchase.

Current

The Current app is a mobile banking software that was founded in 2015 by Stuart Sopp. It helps people save money in a clever way through its financial technology company.

A member of the Federal Deposit Insurance Corporation, Metropolitan Commercial Bank provides the banking services Current offers. They are also the only ones who issue the Current Visa Debit Card. A Current account can also speed up your cash flow by up to two days since there is no credit check required or minimum opening deposit. There are also no maintenance fees to worry about.

• Spending account
• There is no monthly fee
• No deposit is required to open
• Provides bonuses to banks

Walmart MoneyCard

Walmart MoneyCards are prepaid debit cards that provide an alternative to conventional checking accounts. A cash-back rewards program makes this card stand out, offering up to 3% cash back for purchases on Walmart.com, 2% cash back at Walmart fuel stations, and 1% cash back at Walmart stores.

An overdraft protection feature covering up to $200 is available to customers if they opt-in and appropriate direct deposits are made.

In addition, users have the option to opt into the overdraft protection feature, which provides peace of mind with up to $200 in protection for purchases made with opt-ins and eligible direct deposits.

The Walmart MoneyCard also offers users immediate direct deposit, allowing them to receive their paychecks two days before payday and their benefits five days before benefits day.

• Direct deposit of $500 does not require a monthly fee
• Cash back rewards of up to 3%
• A $200 overdraft protection is available

Albert

A bank account with Albert is insured by the FDIC up to $250,000. You’ll receive a free Mastercard debit card when you open an account, and there is no minimum deposit required. Your bank account will receive more money if you use this card because you’ll receive cashback rewards.

A Genius feature is also available on Albert’s mobile app. Ask questions about personal finances 24/7 to get help tackling your financial goals.

A Genius subscriber can also get their paychecks up to two days before payday by setting up a direct deposit and using 55,000+ ATMs for free cash withdrawals.

• ChexSystems or credit checks are not required
• There is no minimum deposit requirement
• Use the Albert debit card and receive a $150 bonus
• A total of 55,000 ATMs are fee-free

Chase

As with Chase, the bank does not perform a credit check or require an opening deposit. Opening an account online is also one of the easiest things to do. As part of Chase Secure BankingSM, you have access to more than 16,000 free ATMs, as well as free online bill pay and money orders.

The majority of applicants receive instant approval and can even earn a $100 bonus after 10 qualifying purchases within 60 days. In most cases, Chase charges $4.95 a month, but that’s easily affordable. 

• After 10 purchases in 60 days, you’ll receive $100
• ChexSystems or credit checks are not required
• There are more than 16,000 ATMs that are fee-free
• The monthly service fee is $4.95

Varo Bank

The Varo Bank offers a fully online banking service where you can open a checking account without visiting a branch.

You can manage your finances with your iPhone when you open a Varo Online Checking Account.

• The minimum opening deposit is zero dollars
• There is no monthly maintenance fee
• Direct deposit of early paychecks is available
• Varo accounts can transfer money for free

There are 55 thousand AllPoint ATMs where you can withdraw money from your checking account. The country has more than 90 thousand locations for cash deposits. Money can also be transferred using Apple Pay and Google Pay. Various online payment methods are available.

According to the bank’s official website, applying for an account does not affect your credit score. You will not be checked for your FICO score, credit history, banking history, or records with ChexSystems or other credit reporting agencies.

What Are ChexSystems Scores? 

An individual’s ChexSystems score can have an impact on his or her ability to open a bank or credit union account.

There are several possible scores on ChexSystems, which range from 100 to 899. A traditional credit score, on the other hand, provides more insight into how you are likely to be affected.

In terms of loan and credit card companies’ views of your credit score, credit bureaus such as Experian are very open:

Category	Score Range
Exceptional	800-850
Very good	740-799
Good	670-739
Fair	580-669
Poor	300-579

Alternatively, ChexSystems hides its scoring system from the public. You may not always know how ChexSystems ranks deposit account holders, even if you can make an educated guess as to what a good or bad score is.

How Can Your ChexSystems Score Be Affected?

ChexSystems scores can be affected by a variety of factors. You may be penalized for the following items on ChexSystems.

• Accounts with negative balances
• Negative balances on unpaid accounts
• Checks that bounced/returned
• NSF checks paid and unpaid
• Debit card abuse
• ATM misuse suspected
• Fraudulent activities suspected
• During account opening, false information was discovered

You can be fairly confident that your ChexSystems score will be high if you keep your deposit account record free of these items and similar ones.

How to Choose Banks That Don’t Use ChexSystems?

There are a few key factors to consider when choosing Banks That Don’t Use ChexSystems:

Charges

 Make sure your bank account has minimal or no fees. There are several fees to watch out for, such as monthly maintenance fees, ATM fees, and fees for closing your account.

Balance Requirements

 You may have to maintain a certain balance in some checking accounts to avoid fees. The balance of an account should be small enough to allow you to comfortably manage it, or it should not have any balance rules at all.

Accessibility

If you want easy access to your money, consider a checking account. The bank might be able to provide ATMs throughout the country, as well as free online and mobile banking services.

Methods of Deposit

 Deposit money in your bank account using mobile, direct, or in-person methods, as well as mobile deposits.

Providers

 There may be branches and ATMs in your area, but others may only be available online. Check the availability of bank accounts in your area.

Service Specialization

 You may be interested in services offered by some banks, such as military banking, student banking, or online banking.

Alternatives For Banks That Don’t Use ChexSystems

You don’t always need to open a new bank account or checking account. Your financial goals can be achieved with a few alternatives in these cases. 

A Second Chance

You can establish good habits along the way with these checking accounts, which are also known as “fresh start” or “opportunity” checking accounts. There are also many banks above that offer second-chance checking.  

The Prepaid Debit Card

When using a prepaid debit card, you can limit yourself to the money you have on hand. It can be a great first step to setting things right financially if you use a prepaid debit card to manage your money responsibly, and for teens, options like the Prepaid Debit Cards for Teens offer tailored features for learning financial responsibility early on.

Using a Secured Credit Card

A secured credit card works similarly to a prepaid debit card in that you have to put up collateral. In the case of secured credit cards, interest will still be charged on balances you fail to pay off in full, but many people use them as a way to improve their credit score and regain access to unsecured credit cards.

Services offered Online

Online banks such as PayPal and others may offer e-wallet services where you can store cash and make payments. It is possible that these accounts offer a debit card, but be aware of this possibility. FDIC insurance is not available to all of them. 

It is possible to build a credit score enough to apply for a personal loan by utilizing these alternatives. It’s best to set yourself up for success by having a plan in place to tackle your debt before you apply for personal loans if you have bad credit. 

Banks That Don’t Use ChexSystems vs Second Chance Banking

Here’s a comparison of Banks That Don’t Use ChexSystems versus a second chance account.

The Banks That Don’t Use ChexSystems

• A bank account application will not check your ChexSystems history.
• There should be very little or no requirement for balance.
• There may be a monthly fee for maintenance.
• There may be overdraft protection available.
• The same online banking and bill-paying features will be available to you as with a regular bank account.

The Second Chance Checking Account

• When you apply, ChexSystems records are usually checked.
• The maintenance fee may sometimes need to be paid.
• There is a possibility that you can get overdraft protection.
• Getting a regular checking account will be possible after you establish trust.
• ChexSystems reports are checked by second chance banks, so they have more information about you. They may impose other requirements as a result. There may be a need for you to take a personal finance course.

In both cases, you can resume bank activities such as writing checks and utilizing a debit card. The two have a few significant differences.

FAQ’s For Banks That Don’t Use ChexSystems

Conclusion

The discovery that you are in ChexSystems can be disheartening, but it doesn’t have to inhibit your financial progress. The best way to overcome this setback is to explore all the options and alternatives you have available to you.

You might be able to ease the approval process by applying for one of the Banks That Don’t Use ChexSystems. You will soon have a checking account and debit card to handle transactions and purchases easily!