Looking for the best banks that don't use ChexSystems? This should be a crucial need for you if you have had a rocky banking history before or you have bad credit. If you have had issues with banks before which reflect negative results on your name, then you certainly appear in ChexSystems.
There are a variety of reasons why you may have been blacklisted by ChexSystems, ranging from insufficient funds to excessive overdrafts.
ChexSystems is a system that most financial institutions use to track account applicants' checking history. As a result, opening a bank account may be challenging.
In fact, most ChexSystems negative records are kept for five years. It's been a long time since you've had a bank account.
Fortunately, many trustworthy banks out there do not use ChexSystems to approve applicants.
It's inconvenient to live without a bank account. People with ChexSystems records can open bank accounts at banks that do not use ChexSystems.
ChexSystems blacklisting can be quite damaging.
Many banks provide second-chance bank accounts, however, they usually come with a monthly service cost. Bank fees for checking accounts can easily exceed $15 per month!
That's why "No ChexSystems Banks" exists. Their aim is to give another chance to those with bad credit to rebuild a good credit score and apply for a standard or regular bank account.
That said, in this article, we have compiled a list of the best banks that don't use ChexSystems. Some will offer you a No ChexSystems bank account that won't require you to perform an opening deposit.
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Why Do You Need A No ChexSystems Bank Account
Even if you currently have a bank account, having a No ChexSystems checking account can be useful.
Why? Banks or credit unions using ChexSystems may run a search of all existing clients and freeze any bank accounts of those who have a negative record.
If you have all of your money in one place, this can be highly inconvenient because you may not be able to access your account for up to 30 days.
Even if you have an established account with a good track record, you run the danger of losing access to your own funds with little to no notice.
List of 15 Best Banks That Don't Use ChexSystems
Many might not be aware of No ChexSystems bank accounts but there are some banks that do offer online bank (checking) accounts without ChexSystems. These banks are as follows:
1. Chime No ChexSystems Checking Account
Chime is a no-fee checking account that doesn't perform a credit check to issue you an account. The Chime Spending Account works similarly to a second chance checking account in that it requires no opening deposit and can be opened by anybody who is at least 18 years old and a US citizen.
In addition, if you have low credit, Chime will provide you with a no credit check Visa credit card that reports to all three major credit bureaus, has no interest costs, and has no annual charge.
A bad credit score is no longer a problem with Chime. They have an award-winning mobile bank account as well as a debit card that does not require a credit check.
There are no monthly fees if you open an account online. That means there will never be any overdraft fees, monthly maintenance costs, international transaction fees, or minimum balance fees.
Over 60,000 fee-free MoneyPass® and Visa® Plus Alliance ATMs are available. Direct deposit also allows you to receive your paycheck up to two days early. On this list, Chime is without a doubt the greatest option.
Features of Chime Checking Account
- Chime will cover your debit card purchases up to $200 with no overdraft fees. There are eligibility restrictions that must be met. ¹
- Direct deposit allows you to get paid up to two days ahead of schedule.
- Chime Visa® Debit Card is a card that allows you to make purchases using your Visa® debit card
- Pay bills, send and deposit checks, and transfer money.
- 60K+ fee-free ATMs at Walgreens, 7-Eleven, CVS, and other places.
- A 0.50 percent interest rate is paid on an optional savings account as APY.
- For customers who have had troubles with their bank account in the past, there will be some leniency.
- There are no monthly or overdraft fees with this account.
- Balances are updated on a daily basis.
2. Acorns No ChexSystems Checking Account
The Acorns Spend Checking Account combines the greatest features of both accounts. It's a flexible online checking account that also comes with Acorns' basic investing features.
You'll get an Acorns Visa debit card when you sign up for the account. Acorns also round up your transaction to the nearest dollar every time you swipe your card. These monies are then invested in one of the ETF funds you've pre-selected.
Acorns Spend also has a number of other useful features. There are no ATM charges, for example, and Acorns will reimburse you for any third-party fees you incur on a monthly basis. There are no overdraft fees or minimum deposit required.
The Acorns Spend Checking Account has a $3 monthly cost, but the limitless ATM reimbursements more than makeup for it.
Requirements for Bonuses: You must receive two direct deposits of at least $250 into your Acorns account within 45 days of opening the account to qualify for the $75 bonus.
Features of Acorns Checking Account
- ATM refund is unlimited.
- There are no overdraft fees.
- There is no minimum deposit required.
- Funds of up to $250,000 are secured by the Federal Deposit Insurance Corporation (FDIC).
- Mobile banking is available.
- Automated bill payment system
- Check deposit on the go
- Deposits made directly into your bank account
3. Douugh Checking Account
Your credit score will not be affected if you apply for a Douugh Checking account. However, you must have your Social Security Number with you. You receive all of the features of a standard checking account, plus numerous automated budgeting options, with the Douugh account and application.
Features of Douugh Checking Account
- No minimum deposit requirements.
- Instant virtual debit card. Your physical Douugh Mastercard will arrive between 7 to 10 days.
- Free withdrawals at more than 38,000 ATMs.
- Automated Savings Jars system that sets money aside for bills and savings.
- Monthly service fee of $4.99/month.
- No overdraft fees.
- FDIC Insured up to $250,000*.
4. Varo Bank Checking Account
Varo Bank is an online bank that does not use ChexSystems to offer accounts. As a result, you can establish a new checking account without fear of your ChexSystems report being run by the bank. Varo doesn't require a minimum deposit and no monthly fees are charged for account maintenance.
Direct deposit payments are also available to account holders ahead of schedule. Direct deposits are normally posted the next business day after they are received.
Varo Bank understands that just because you require second-chance banking does not imply that you desire poor service. A free Visa debit card, access to over 55,000 Allpoint ATMs, and free paper check mailing are all included with your account.
Features of Varo Checking Account
- No credit check
- No minimum balance
- No monthly fees
- No overdraft fees
- 55k+ fee-free Allpoint ATMs in places you already shop at Target, CVS, and Safeway*
- Bill pay
- Visa debit card
- Mobile check deposit
5. Wells Fargo No ChexSystems Checking Account
Clear Access Banking is a debit card-only account (no paper checks), thus if you try to buy something without enough money, the transaction will be rejected. A $5 monthly fee is charged, although it is waived for account holders aged 24 and under.
Features of Wells Fargo Checking Account
- Minimum deposit of $25 to open an account
- Online bill pay and smartphone app
- Mobile check deposit
- Visa debit card
- Send and receive money through Zelle
6. U.S. Bank Easy Checking Account
The Easy Checking Account from U.S. Bank is a wonderful alternative for anyone dealing with the effects of a bad ChexSystems report. Account holders will receive a free U.S. Bank Visa debit card and access to the mobile app when they open a checking account.
If you have a total of $1,000 in monthly direct deposits, U.S. Bank will forgo the $6.95 monthly maintenance cost. Customers can access U.S. Bank from anywhere in the United States.
Features of U.S. Bank Easy Checking Account
- Online and Mobile Banking
- Bill pay
- Visa debit card
- Mobile check deposit
7. GoBank Checking Account
If you're looking for a simple checking account that doesn't use ChexSystems, GoBank is a decent choice. With a $500 direct deposit, account holders can avoid the $8.95 monthly fee on this checking account.
GoBank also provides free access to 42,000 ATMs. Customers can also use a number of budgeting and money management tools provided by the bank.
8. First American Bank Checking Account
If you've had problems opening a bank account in the past, First American Bank offers a Fresh Start Checking account. First American is a privately held, Illinois-chartered full-service bank with 53 branches in Illinois, Florida, and Wisconsin.
Features of First American Bank Checking Account
- $50 opening deposit
- Mastercard® Debit Card
- Free mobile and online banking
- $9.95 monthly fee
9. Truist Bank Essential Checking Account
Numerous people have had different experiences with Truist Bank when it comes to banks that don't use Chexsystems. The bank, for example, claims it does not use ChexSystems to check applications, although some customers allege it does.
It could be determined by the seriousness of your criminal background, such as fraud. SunTrust offers a variety of checking accounts, but their Essential Checking account may be the best place to start.
You can pay a $7 monthly service fee or achieve one of several requirements to avoid the fee. There are three options: do at least 10 bank transactions every month, deposit at least $500 per month, or have a $500 balance.
Accounts included in mobile banking
- Advantage Checking
- Essential Checking
- Balanced Banking
10. Huntington Bank Checking Account
Huntington Bank uses ChexSystems, however, if you don't owe the bank any money, you can still get a checking account. Applicants with an EWS record, on the other hand, may not be eligible.
To get started with Huntington's basic account, you'll need to make a $25 minimum starting deposit. There are no minimum balance requirements or monthly fees afterward.
Unlike other banks with locations in all 50 states, Huntington Bank has locations in Arizona, Colorado, Illinois, Indiana, Michigan, Minnesota, South Dakota, and Wisconsin.
Different Accounts Offered by TCF Bank
- Huntington® Premier CheckingSM
- Huntington Free Student Checking®
- Huntington Premier 62+® Checking
- Huntington® Teen Checking
11. First Convenience Bank Checking Account
Only Texas, New Mexico, Arkansas, and Arizona are served by First Convenience Bank. 1st Convenience Bank is a branch of 1st National Bank Texas. The bank does not use ChexSystems to decide who is eligible to open an account with them.
To start a new checking account, you'll need to make a minimum deposit of $20. A monthly maintenance fee is also charged by the bank. If certain conditions are met, you can avoid paying any monthly fees.
Accounts Offered by 1st Convenience Bank
- Power Checking
- Checking Interest
- President Select High Yield Checking
12. TD Ameritrade
TD Ameritrade offers both a brokerage account and a cash management checking account. TD Ameritrade does not screen applicants using ChexSystems, however, you must first open a brokerage account before applying for a cash management account.
A Cash Management account also includes free online bill pay and a free debit card that includes nationwide ATM charge rebates. Furthermore, if you keep a $100 minimum daily balance, you won't be charged monthly fees. A TD Ameritrade checking account, on the other hand, is neither FDIC-insured nor bank-guaranteed.
Features of TD Ameritrade
- No monthly fees
- Free debit card
- Ability to pay bills online
13. Cadence Bank
Cadence Bank is another bank that offers checking accounts without ChexSystems being used to screen applications. My Way Checking, for example, is one of numerous non-ChexSystems checking accounts offered by BancorpSouth. This account includes the essentials, such as a free debit card, online banking, and bill pay.
A $50 minimum deposit is required to open an account. You can also get the monthly charge eliminated if you meet specific criteria.
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Banks That Don't Use ChexSystems For Business Accounts
- Novo: Best for no-fee banking.
- BlueVine: Best for high-yield checking.
- Wells Fargo: Best for convenient branch and ATM access.
- LendingClub Bank: Best for low minimum opening deposit.
What’s the Difference Between Non-ChexSystems and Second Chance Banking?
Non-ChexSystems banks don't use ChexSystems to check new accounts; instead, they may rely on other consumer reporting agencies. Early Warning Services, for example, provides new account screening. EWS, although less well-known than ChexSystems, can keep you from opening a new account.
Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo are among the institutions that own EWS. EWS was developed by these banks primarily to combat client fraud. A credit report may also be used by non-ChexSystems institutions to screen customers.
Second chance banks may employ ChexSystems to evaluate new users, but they also provide fresh start checking accounts. These banks provide "second chance" checking accounts, which allow customers to restore their credit history. When a bank or credit union gives a second chance checking account, it means they're ready to ignore a blemished ChexSystems record.
With second-chance checking accounts, you should expect to pay a monthly checking fee, but most provide users the option to upgrade to a standard checking account after 12 months of responsible account management.
Best Alternatives to Banks That Don't Use ChexSystems
You have a few options if you can't qualify for one of these accounts or if you'd like to look into other possibilities. Here are the best alternatives to banking without ChexSystems, as well as the advantages and disadvantages of each option.
Best Second Chance Checking Accounts No Opening Deposits
- Wells Fargo Clear Access Banking
- GoBank Account
- Radius Essential Checking
- Corporate America Family Credit Union Fresh Start Checking Account
As previously indicated, a bank or credit union may provide second-chance checking accounts to customers with a poor credit history. "Fresh start checking" or "opportunity checking" are terms used to describe these accounts. Some large banks, such as Wells Fargo and Bank of America, provide second chance banking.
Prepaid Debit Cards
A prepaid debit card functions in much the same way as a standard debit card. The difference is that you normally have to pay a small monthly charge. Each prepaid debit card has its own method of loading funds, but you can usually do so at a big retailer like Walmart or online. When you load money, however, there may be additional fees.
Secured Credit Cards
A secured credit card can help you receive a card to use for online and in-store transactions, but it has some significant limitations. You'll have to put up your own money as collateral, and you'll still have to pay interest on any credit card bills you don't pay off in full. These Cards are generally used to improve your credit score.
Best Practices For Those With ChexSystems Report
- Don't put all your eggs in one basket; have many banking options.
- Split your direct deposit between two checking accounts if you have one. If one of the accounts is locked, you'll still have access to some funds.
- Wait until your ChexSystems record is clear before using supplemental services like Billpay.
- Report any fraudulent activity you find on your accounts right away. Banks appear to submit consumers to ChexSystems and Early Warning Services for fraud and account abuse, even when no such activity happened.
- If you decide to close your account, keep an eye on it for a few months to make sure there are no outstanding charges, fees, or overdrafts.
How To Manage Your New Account
Because it's tough to find a bank that doesn't use ChexSystems, carefully manage your new checking account to keep it open. You can avoid unwanted costs, as well as being reported to ChexSystems or Early Warning Services if you handle your account properly.
Here are some quick tips to help you manage your new bank account:
- Keep an eye on your balance and any payments that are due.
- All bank statements and correspondence should be opened and reviewed.
- Make sure you don't spend more money than you have in your account.
- Before you withdraw money from an ATM, keep an eye on your account online or on your phone.
- Before you write a huge check or make a substantial payment, call or go online to verify your balance.
- Sign up for e-mail or text transaction notifications and low-balance warnings.
- Don't expect the money you deposited to be available right away.
- Determine when the funds you deposit will be accessible for usage.
- If a deposit is being held, be sure you know when it will be released.
- If you don't know for sure that the money is in your checking account, don't make a payment with it.
While the way you manage your new account has no direct impact on your credit score, having a good checking account can be a requirement for getting a second-chance loan.
Second chance loans might help you improve your credit score if you pay on time and record your payments to the credit bureaus. A second chance loan may be a good option if you need a bad credit installment loan.
Final Thoughts: Banks That Don't Use ChexSystems
No ChexSystems Bank account is the best option for those who have a bad credit score and a rocky banking history. These accounts make it possible for you to reconstruct your credit score and apply for a standard checking account in the future.
Banks such as Chime and Nearside offer Free Online Checking Accounts No ChexSystems No Opening Deposits. It is a great starting point for those with bad credit history as it lets you raise a proper credit score on your own. With time, you can apply for second-chance loans which are available for second-chance checking accounts.
On the other hand, if your application for a No ChexSystems bank account gets rejected by a No ChexSystems bank, then it surely means you might have some other problems with banks such as fraudulent activities. However, it is not the end of the world for you, you can check out these alternatives for banks that don't use ChexSystems some of which are second chance checking and prepaid debit cards to get back in the banking world.