7 Best Banks That Don’t Use ChexSystems - 2022 Reviews
If you have been denied a checking account because of your ChexSystems report, don’t worry - you are not alone. According to the San Francisco Office of Financial Empowerment (OFE), about 80% of banks and credit unions use ChexSystems or other consumer reporting agencies when determining whether to approve new customers for new accounts.
To help you stay off the ChexSystems radar, we have compiled a list of the seven banks that don’t use ChexSystems screening service and won't blacklist you for having an unfavorable report.
- 60,000+ fee-free ATMs
- No monthly or overdraft fees
- Fee-free overdraft of up to $200
- APY 40x higher than the national average
- Teen Account
- Gas Hold Removals
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- The highest number of branches in the US
- A vast array of financial products
- No monthly fees for teenagers and young adults
- Tungsten Visa debit card
- Integrated investment tools
- Free in-network ATM usage
- First Deposit Bonus of up to $300
- A vast array of financial products
- Up to 15% Cash Back
- High savings APY
- Varo Advance of up to $100
- Varo Believe credit builder card
- Fee-free online and mobile bill pay
- Overdraft protection of up to $200
- Refer a Friend program
Guide for Finding the Best Banks Without ChexSystems
If your credit history is not squeaky clean, chances are you've probably heard of ChexSystems. ChexSystems is a consumer reporting agency that provides information on your bank account history and activity. This information is then used by banks and credit unions to help them decide whether or not to approve you for an account.
Finding a perfect bank that won’t blacklist you for financial mistakes from the past can be difficult, so we went ahead and made this list to make the process easier for you. While compiling the list, we took into account a number of factors, did thorough research, and we've pinpointed several important things to pay attention to. Here’s our guide:
Products and Features
When searching for the best no-ChexSystems banks, you'll want to consider the financial products they have to offer. Some banks provide a credit-builder card that can help you establish or improve your credit score. Others boast a high-interest savings account that can help you grow your savings and a top-notch checking account with no minimum balance requirements.
Most of the banks and fintech companies on our list offer features such as direct deposit, ATM fee reimbursement, online and mobile banking, and a free debit card. Some of them provide an automatic savings feature, which makes saving easier by rounding up your purchases to the nearest dollar, or a fee-free overdraft coverage.
Some non-ChexSystems banks are better than others when it comes to minimizing fees. Unlike traditional financial institutions, most online-only banks don't charge monthly maintenance fees or require a minimum balance. Others will reimburse you for ATM fees charged by other banks.
However, there might be other costs associated with the account. Make sure to check whether the bank charges users foreign transaction fees, overdraft fees, or require a minimum deposit to open an account. Also, be sure to read the fine print and understand what, if any, fees are associated with the account before you open it.
When it comes to interest rates, online-only banks that don't use ChexSystems typically offer higher rates than traditional banks. This is because they don't have the overhead costs associated with maintaining physical branches.
If you're looking to grow your savings, you may want to consider an online-only bank that offers a high-yield savings account. Before you decide which bank to hang your hat with, compare the interest rates on offer to make sure you're getting the best return on your investment.
As most of the banks on our list are online-only, it's important to make sure your deposits are insured. Otherwise, if the bank goes under, you could lose your funds. Banking without ChexSystems doesn't mean you have to sacrifice security.
The Federal Deposit Insurance Corporation (FDIC) protects deposits of up to $250,000 per account holder, per bank. So if you have more than $250,000 in savings, you'll need to spread it across multiple banks to ensure it's all covered.
What About Second Chance Banking?
Banks on our list simply don't report to ChexSystems. This means that even if you have a few blemishes on your ChexSystems credit report, you can still open an account with these banks.
Second chance banks, on the other hand, are willing to work with people who have bad credit or a checkered financial history and give them a second chance. However, these banks usually offer slimmed-down features and higher fees.
If you're having a non-ChexSystems vs. second chance banking dilemma, we recommend going with the first option. These banks are just as reputable as traditional ones, but they don't report to ChexSystems, so you can still qualify for an account, even if you have a few dings on your financial history.
7 Banks That Don’t Use ChexSystems:
Chime - Best Credit Builder Card
Current - Best for High Savings APY
Wells Fargo - Best for Teenagers and Young Adults
Acorns - Best Integrated Investment Tools
SoFi - Best Collection of Financial Products
Varo - Best Free Cash Advance
Go2bank - Best for Mobile Banking
What bank does not use ChexSystems?
As we've seen, those who wish to open an account but have been denied due to ChexSystems can do so through a number of online (and even some brick-and-mortar) banks and financial institutions. Depending on your needs, you might want an account with no monthly fees, or one that will help you rebuild your credit score. Some of the best banks with no ChexSystems credit check are Chime, Current, SoFi, Go2bank, and Wells Fargo.
Can I open a bank account if I'm in ChexSystems?
Yes, you can open a bank account even if you're in ChexSystems. As we've seen, there are a number of banks and financial institutions that don't use ChexSystems when considering applicants for new accounts. This means that even if you have a bad credit history, you can still be approved for an account. Also, you can try second chance checking accounts that are offered by some banks and credit unions.
Does Wells Fargo use ChexSystem?
Wells Fargo is one of the banks that don't use ChexSystems and won't deny your application because of bad credit history. Wells Fargo offers a number of different checking and savings account options, so you can choose the one that best suits your needs.