ChexSystems is a consumer reporting agency that banks and credit unions use to evaluate potential customers. If you’ve had past banking issues, understanding how financial institutions use ChexSystems can help you make informed decisions about where to open an account.
How ChexSystems Affects Banking
ChexSystems is a specialized consumer reporting agency that tracks and reports on individuals’ banking history. It collects information on closed checking and savings accounts, including reasons for account closures, overdrafts, bounced checks, and unpaid fees. Financial institutions use this information to assess the risk of opening new accounts for potential customers.
A negative ChexSystems report can significantly impact your ability to open a new bank account. Here are some key points to understand:
- About 80% of banks and credit unions in the U.S. use ChexSystems.
- Information in ChexSystems can remain active for up to five years.
- A negative report may result in denial of a new checking or savings account.
- Some banks offer “second chance” accounts for people with negative ChexSystems reports.
America First Credit Union and ChexSystems
America First Credit Union does use ChexSystems in their account opening process. This means that if you have a negative ChexSystems report, you may face challenges opening an account with them. However, it’s worth noting that:
- America First Credit Union’s specific policies regarding ChexSystems are not publicly detailed.
- They may consider other factors beyond just the ChexSystems report when evaluating applications.
- It’s always best to contact the credit union directly to discuss your specific situation.
Alternatives to ChexSystems Banks
If you’ve been denied an account due to ChexSystems, consider these alternatives:
U.S. Bank
- Up to $450 sign-up bonus
- $25 minimum opening deposit
- Monthly service fee can be waived
- Over 40,000 fee-free ATMs
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 4.20% APY
- Over 55,000 fee-free ATMs
- Early pay with direct deposit
Current
- 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
Learn More
- Banks That Don’t Use ChexSystems – Take the first step to rebuilding your banking history with our list of banks that do not use ChexSystems for account approval.
- Credit Unions That Don’t Use ChexSystems – Find a credit union that will work with you, not against you. Learn about the credit unions that don’t use ChexSystems.
- Am I in ChexSystems? – Unsure if you’re in ChexSystems? Learn how to find out and take control of your financial status.
- How to Get Out of ChexSystems – Learn how to get out of ChexSystems in four simple steps.
- Second Chance Checking Accounts – Take control of your financial future with our list of over 250 banks that offer second chance checking accounts.
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