20 Banks That Don’t Use ChexSystems for 2024


Past checking account issues can make finding a new bank challenging. Insufficient funds or excessive overdrafts can lead to being blacklisted by ChexSystems

Fortunately, numerous reputable banks don’t rely on ChexSystems for qualification. You can quickly access their features and benefits without past mistakes hindering you. Many options below even allow you to open an account in under 5 minutes.

Best Banks That Don’t Use ChexSystems of 2024

We understand that finding the right banking options can be time-consuming and challenging, especially when dealing with a negative banking history. That’s why we’ve done the research for you, compiling a list of the best banks and credit unions that don’t use ChexSystems.

1. U.S. Bank

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  • Up to $450 bonus
  • $25 minimum opening deposit
  • Monthly service fee can be waived
  • Over 40,000 fee-free ATMs

U.S. Bank is currently welcoming new applicants with a special offering:

  • Earn up to $450 when you open a new U.S. Bank Smartly® Checking account and complete qualifying activities.
  • Subject to certain terms and limitations. Offer valid through September 26, 2024. Member FDIC.
  • Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.

The account includes a free debit card that can be locked or unlocked if ever misplaced or stolen. There are no ATM transaction fees at U.S. Bank ATMs and no surcharge fees at over 40,000 MoneyPass® Network ATMs.

The checking account requires a $25 opening deposit and a $6.95 monthly fee. This fee can be waived for those 24 and under, 65 and over, or military members (must self-disclose).

Additionally, the fee can be waived with monthly deposits of $1,000+, an average balance of $1,500+, or holding an eligible U.S. Bank credit card. Qualifying for any Smart Rewards® tier (Primary, Plus, Premium, or Pinnacle) also waives the fee.

2. SoFi

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  • Up to $300 sign-up bonus with direct deposit
  • No minimum opening deposit
  • Earn up to 4.60% APY
  • Over 55,000 fee-free ATMs

SoFi Checking & Savings is an excellent choice for anyone seeking an alternative to traditional banking. This online bank offers a unique blend of checking and high-yield savings features in one streamlined account.

There is no minimum balance required, no monthly fees, and no overdraft fees, making SoFi an affordable option for a wide range of individuals. You can also earn up to $300 with qualifying direct deposits.

One of SoFi’s most attractive features is its 4.60% annual percentage yield (APY) on savings accounts, and 0.50% APY on checking balances. Deposits are also FDIC-insured up to $2 million.

Accessing your money is easy with SoFi Checking & Savings. With over 55,000 fee-free ATMs available worldwide through the Allpoint® Network, you can conveniently withdraw money at no extra charge.

On top of this, SoFi also offers the option to get your paycheck up to 2 days sooner when you set up direct deposit.

3. First Tech Federal Credit Union

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  • Earn up to 5.00% APY
  • No monthly fees
  • No minimum balance requirements
  • Over 30,000 fee-free ATMs

First Tech Rewards Checking & Savings is an ideal solution for those looking for a rewarding banking experience without the traditional constraints. This account combines high-yield interest and multiple financial incentives within a single platform.

There are no minimum balance requirements and no monthly maintenance fees. Members can earn a $300 bonus by setting up a qualifying payroll direct deposit of $1,000 or more per month for three months.

One of the standout features of First Tech is its high interest rate, offering up to 5.00% APY on both checking and savings accounts up to certain balances. This is significantly higher than many traditional and online banks.

Accessibility is also a key benefit, with over 30,000 CO-OP network ATMs available nationwide for fee-free withdrawals. Additionally, First Tech offers enhanced financial flexibility and peace of mind with features like real-time fraud monitoring and free overdraft transfers.

4. Chime

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  • No minimum deposit or monthly fee
  • Over 60,000+ fee-free1 ATMs
  • Get paid up to 2 days early with direct deposit2
  • No credit check or ChexSystems

With Chime®, a bad credit score is no longer a deal-breaker. They offer an award-winning financial app and debit card with no credit check.

You can open a Chime Checking Account online with no monthly fees. And by that, we mean no overdraft fees, no monthly maintenance fees, no foreign transaction fees, and no minimum balance fees—ever.

They offer over 60,000 fee-free1 MoneyPass® and Visa® Plus Alliance ATMs. You can also deposit cash for free at over 8,500 Walgreens.

5. Current

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  • Build credit and earn points with every swipe
  • No minimum opening deposit or maintenance fees
  • Get paid up to 2 days faster
  • No credit check or ChexSystems

Current is one of the fastest-growing online banking solutions in the U.S., with over one million members. However, Current is a fintech company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit report.

With Current, you can build your credit just by using your debit card for day-to-day transactions. No borrowing required, and no credit check involved.

The Current mobile banking account offers fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance or hidden fees.

With early direct deposit, you can get paid up to two days ahead of schedule. You can also earn up to 15x points, and get cashback with your debit card.

Current banking services are provided by Choice Financial Group and Metropolitan Commercial Bank, Members FDIC.

What is ChexSystems?

ChexSystems is a consumer reporting agency that collects information about issues you’ve had with deposit accounts.

Over 80% of banks and credit unions use ChexSystems to retrieve and supply information on closed checking and savings accounts when problems occur.

If you’ve ever had issues with a bank account, such as overdrafts, bounced checks, returned checks, unpaid fees, or negative balances, you may have a ChexSystems record.

Why do most banks and credit unions use ChexSystems?

ChexSystems helps financial institutions determine the risk of accepting new customers. From the bank’s perspective, an individual who misuses or mismanages their bank account is likely to do it again.

If you have a history of having bank accounts closed for negative reasons, the information will remain on your ChexSystems file for up to five years.

Which banks don’t use ChexSystems?

While most U.S. banks use ChexSystems to screen new applicants, the ones we’ve mentioned above don’t. These banks were selected based on user-friendliness, affordability, and strong reputations.

Online platforms like Chime and GO2bank are free and easy to use, while U.S. Bank and Chase offer plenty of features and low-fee accounts. Always do your own research and consider your personal financial situation when choosing a bank.

Why You Need a Non-ChexSystems Account

A non-ChexSystems checking account can be beneficial even if you already have another bank account.

Why? Banks and credit unions that use ChexSystems may conduct a sweep of all existing customers and freeze any bank accounts of individuals who have had a record created.

This can be troublesome if you have all of your money in one bank account because you may not be able to access it for 30 days.

So, even if you have an existing checking account with a positive history, you run the risk of not being able to access your own money with little to no warning.

Benefits of Online Banks That Don’t Use ChexSystems

You may have noticed that some of the banks that don’t use ChexSystems above are online banks. These banks offer checking and savings accounts that are typically available to residents of all 50 states.

Most of the other checking accounts listed above are also available to all U.S. citizens, even if their branch locations are not in your state. You can simply open an account online and use their mobile and online banking features.

While it’s nice to be able to visit a local bank or credit union branch when you need to, many of the financial institutions we’ve listed offer mobile check deposit. Many of them also offer thousands of ATMs, so you have free access to your cash any time you need it.

What to Look for in a Bank Account That Doesn’t Use ChexSystems

When looking for a bank account that doesn’t use ChexSystems, there are a few key factors to consider:

  • Fees: Look for a bank account that has minimal or no fees. Some common fees to watch out for include monthly maintenance fees, ATM fees, and account closure fees.
  • Minimum balance requirements: Some checking accounts may require you to keep a certain balance to avoid fees. You may want to find an account that either has no such balance rules, or one where the balance is set low enough for you to comfortably manage.
  • Accessibility: Consider a checking account that provides easy access to your money. This might include a large network of ATMs, free online and mobile banking options.
  • Deposit options: Make sure the checking or savings account you choose accepts multiple deposit methods, including mobile deposits, direct deposits, or in-person deposits.
  • Availability: Check the availability of the bank account in your area, some bank may have a wide network of branches and ATMs, while others may only be available online.
  • Specialized services: Some banks may offer specialized services such as military banking, student banking, or online-only banking that may be of interest to you.

What to Know Before Choosing a Checking Account

Before opening a new bank account, even if it’s a non-ChexSystems bank account, be aware that you may have a record with another credit reporting agency. TeleCheck and Early Warning Systems are two others that some banks use.

Some banks and credit unions may also pull your credit report from one of the three major credit bureaus. While this is rare when opening a checking or savings account, there are some financial institutions that do it.

Other Alternatives to Banking Without ChexSystems

If you prefer to explore other options besides banks that don’t use ChexSystems, you do have some choices. Here are the top alternatives to banking without ChexSystems, along with the pros and cons of each choice.

Second Chance Checking: As mentioned, sometimes a bank or credit union will offer second chance checking accounts to consumers who have a negative banking history. These accounts are sometimes called “fresh start checking” or “opportunity checking.” There are even some big banks like Wells Fargo and Bank of America that offer second chance banking.

Prepaid Debit Cards: A prepaid debit card acts very similarly to a regular debit card. The difference is, you usually do have to pay a monthly fee of a few dollars. Each prepaid debit card has different ways to upload money. Typically, you can do it at a major retail store like Walmart or online. However, there may be additional fees when you load money. Check out this list of top-rated prepaid debit cards.

Secured Credit Cards: With a secured credit card, you can make purchases online and in stores. However, it does come with some drawbacks. A cash security deposit is required, and any credit card balances not paid in full will incur interest. These cards are generally used to improve your credit score. Here are some of the best secured credit cards.

Online Services: Some reputable websites like PayPal offer e-wallet services to let you store your cash and pay online. You may even be able to qualify for a debit card. However, unlike a traditional checking account, your funds may not be insured by the Federal Deposit Insurance Corporation, so consider your options carefully.

Brokerage Accounts: Many brokerage firms now offer what they call a cash management account or a money market account as an alternative to traditional banking. While the primary purpose of a brokerage account is to buy and sell investments like stocks and bonds, these cash management options function similarly to a traditional checking or savings account. You can usually write checks, make direct deposits, and even have a debit card.

Foreign Bank Accounts: Live near the Canadian or Mexican border? Consider opening a bank account in another country. It sounds extreme, but foreign banks may have different approval requirements you could benefit from.

Frequently Asked Questions

Can I open a bank account while I’m in ChexSystems?

It’s still possible to open a new checking account even if you’ve been denied due to a negative ChexSystems report. There are numerous banks and credit unions that don’t use ChexSystems.

Some banks also offer second chance banking opportunities and checking accounts for bad credit.

What’s the difference between non-ChexSystems and second chance banking?

Banks that don’t use ChexSystems and second chance checking accounts generally have quite a bit in common. The main difference is that second chance banks may still utilize ChexSystems, but they’re willing to give you a second chance anyway.

Similar to non-ChexSystems banks, second chance bank accounts usually don’t have any minimum balance requirements. However, with a second chance checking account, you’ll most likely have to pay a monthly maintenance fee.

The best second chance checking accounts offer many of the same features and benefits you’d find with a ChexSystems bank or credit union. This includes overdraft protection, online banking, and the ability to pay your bills online. With a second chance bank account, you can typically upgrade to a standard checking account once you’ve established a positive banking history.

Can I open a bank account if I owe another bank money?

If you owe money to a bank, you most likely won’t be able to open an account at another bank that uses ChexSystems. You’ll need to look for checking accounts at a bank that does not use ChexSystems.

Bottom Line

While this list of banks that don’t use ChexSystems is a great start, we also explain how to get out of ChexSystems so that you can clear your name from their database. Under the Fair Credit Reporting Act, banks and consumer reporting agencies like ChexSystems are required to investigate disputes and remove inaccurate or unprovable items.

Follow the simple steps provided on that page, and before you know it, you’ll be able to choose any bank you like.

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