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 2023
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.
2. U.S. Bank
- $400 sign-up bonus
- $25 minimum opening deposit
- Monthly service fee can be waived
- Over 40,000 fee-free ATMs
- 4.50% APY up to $5,000
- No minimum opening deposit
- Build credit with no annual fees
- Overdraft protection up to $200
- $100 bonus after 10 purchases in 60 days
- No credit check or ChexSystems
- Over 16,000+ fee-free ATMs
- $4.95 monthly service fee
- Earn 4.70% APY when paired with a Future savings account
- 55,000 Free AllPoint ATMs
- Seamless Zelle® Integration for easy money transfers
- Get paid up to 2 days early
- No minimum opening deposit or maintenance fees
- Get paid up to 2 days faster
- Overdraft up to $200 without any overdraft fees
- No credit check or ChexSystems
7. Walmart MoneyCard
- No monthly fee with direct deposits of $500 or more
- Earn up to 3% cash back on purchases
- Overdraft protection covering up to $200 with eligible direct deposits
- 2% APY on savings
- No monthly service fee
- Earn up to 4.25% APY on savings
- Free withdrawals at more than 55,000 ATMs
- Commission-free stock trading
9. TD Ameritrade
- No monthly fee
- Unlimited fee refunds for U.S. ATMs
- Free TD Bank debit card
- Free checks and unlimited check-writing capabilities
- No minimum balance
- Cash advances up to $250
- No maintenance fees
- Free ATMs at over 55,000 locations
The SoFi Checking and Savings account has no overdraft charges, no minimum balance, and no monthly fees. Plus, the online bank offers 55,000+ fee-free ATMs within the Allpoint® Network.
SoFi also offers the option to get your paycheck up to 2 days sooner when you set up direct deposit.
You’ll also get a 4.20% APY on your savings accounts, and 1.20% APY on checking balances. Furthermore, you can get up to 15% cash back at local establishments with your SoFi debit card.
12. Navy Federal Credit Union
To become a member of Navy Federal Credit Union, you must be either actively serving or retired from military duty, which includes the Armed Forces, National Guard, Coast Guard, and the Department of Defense.
For those eligible, Navy Federal Credit Union offers two free checking account options: Free Easy Checking and Free Active Duty checking. Neither account utilizes ChexSystems or Early Warning Services (EWS), and both have no minimum balance requirements or monthly service fees as long as a qualifying direct deposit is set up.
The benefits of banking with NFCU extend beyond checking accounts, with a wide range of financial products and services available to its members. From mortgages to auto loans to credit cards, the credit union is committed to serving its members and helping them achieve their financial goals.
With the Aspiration Spend & Save account, you can have both a regular checking account and a savings account which could earn up to 5% APY.
Aspiration also offers unlimited free ATM withdrawals at over 55,000 locations. The minimum opening deposit is $10. Deposits are FDIC insured and you can get your paycheck up to two days early with direct deposit.
The Aspiration debit card is made from recycled plastic. Deposits are 100% fossil fuel-free. And they even give you the option to plant a tree with every card swipe.
14. Langley Federal Credit Union
Langley FCU is another credit union that doesn’t look at ChexSystems reports. They are located in Virginia, but membership is open to customers in all 50 states.
You must first open a share savings account with a minimum deposit of $5 before you can open a checking account. There are no minimum balance or monthly service charges. In addition, they offer free mobile and online banking, online bill pay, and access to 55,000+ Allpoint ATMs Nationwide.
You can also get paid up to 3 days early with direct deposit.
FSNB, formerly known as Fort Sill National Bank, is a viable alternative for personal banking that does not require ChexSystems or credit checks for approval.
It offers a range of banking services including savings and checking accounts, loans, and credit cards. Additionally, FSNB provides specialized checking accounts and services catering to military personnel.
The Basic Checking account has a $5 minimum deposit, and you need a daily minimum of $75; otherwise, you’ll be charged a fee of $5.50. In addition, you get a Visa CheckCard and free online banking services.
16. Renasant Bank
For people residing in Alabama, Florida, Georgia, Mississippi, and Tennessee, Renasant doesn’t look at your ChexSystems report, EWS, or Telecheck.
However, you won’t be eligible if you owe any money to this community bank. All Renasant Bank checking accounts require a $50 minimum deposit, including its student checking account.
Checking accounts come with a Mastercard debit card. There is a monthly fee of $7.50 for all checking accounts unless you maintain a balance of $500 or more.
17. United Bank
United Bank has locations in Maryland, Ohio, Pennsylvania, Virginia, West Virginia, and Washington, DC. You can open a new bank account with a $50 minimum deposit. There is no minimum account balance requirement or monthly fees.
You can also upgrade to rewards checking, where you earn cashback rewards and discounts on movies, theme parks, and prescriptions. It’s only $10 a month, or you can have the fee waived if you reach 15 purchase transactions monthly or have a minimum of $500 in regular deposits.
18. Varo Bank
Varo Bank, also known as Varo Money, is an online-only bank that provides a full range of banking services. It operates exclusively online or through its mobile app, as it does not have any physical locations.
Varo is open to all Americans, but it primarily targets millennials and young people who seek an alternative banking experience to traditional banks.
There are no monthly fees or minimum deposits with Varo. Account holders also get early access to direct deposit payments. Direct deposits usually post on the same day they’re received. You can also transfer money through various platforms such as Google Pay, Apple Pay, PayPal and more.
Varo Bank knows that just because you need second chance banking doesn’t mean you want substandard service. Your account comes with a free Visa debit card, access to over 55,000 Allpoint ATMs, and free paper check mailing.
19. 1st Convenience Bank
1st Convenience Bank is a branch of 1st National Bank Texas, and it’s only available in Texas, New Mexico, Arkansas, and Arizona.
You’ll need a minimum deposit of $20 to open a new checking account, and the monthly service charge is $5. However, you can avoid all monthly fees if certain conditions are met.
20. Huntington National Bank
Huntington Bank has locations in Arizona, Colorado, Illinois, Indiana, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin.
This bank does use ChexSystems, but you can still be eligible to open a checking account as long as you don’t owe the bank any money. However, those with an EWS record may not qualify for a checking account.
Huntington Bank’s Asterisk-Free Checking account is a no-cost, no-hassle banking solution. Open and maintain your account for free with no minimum balance requirement. It comes with features such as an intuitive mobile app, instant credit with Standby Cash, and protection from overdraft fees via $50 Safety ZoneSM and 24-Hour Grace.
21. Cadence Bank
Cadence Bank‘s My Way Checking is an accessible option for those wanting to avoid ChexSystems, requiring just a $50 initial deposit. Plus, its monthly fee can be easily avoided by fulfilling certain criteria, giving you more control over your finances.
With features like a free debit card, online banking, and bill pay, it offers all the essentials you’d expect from a modern checking account.
22. Regions Bank
Regions Bank offers multiple checking accounts. They come with monthly fees ranging from $5 to $18. However, in some cases those fees can be waived if you meet specific requirements.
The Regions Now Checking is a viable option for anyone who wants a basic checking account from a bank that doesn’t look at your ChexSystems report. The minimum opening deposit is $10, and the monthly fee is $5. It offers unlimited check writing and access to online bill pay.
23. Bank OZK
Bank OZK, formerly known as Bank of the Ozarks, offers a suitable banking choice regardless of your ChexSystems history. They offer several checking accounts, each catering to different financial needs. The accounts come with initial deposits as low as $25-$50.
The monthly fees range from a modest $5 to $12, providing flexibility for various budget ranges. One of the standout features is that once your account is active, there’s no pressure to maintain a minimum balance, making it an excellent choice for those seeking financial flexibility.
24. Axiom Bank
Axiom specializes in serving individuals with poor credit histories. They offer a variety of personal and business banking solutions, including an Opportunity Checking account for those starting fresh with banking.
The account includes features such as eStatements, mobile banking, and access to a network of ATMs. It also has no minimum balance and a small opening deposit.
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 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.
What banks don’t use ChexSystems?
Roughly 80% of U.S. banks use ChexSystems to screen new applicants, but 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 banks 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 bank account you choose allows you to deposit money in a variety of ways, 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.
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.
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 have either a low balance requirement or none at all. 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.
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.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment ﬁle from the payer. Chime generally make these funds available on the day the payment ﬁle is received, which may be up to 2 days earlier than the scheduled payment date.
7. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.