If you’ve been denied a checking account because of past banking issues, you’re not the only one. The setback can be frustrating, but it doesn’t have to stop you from banking again.
American Express is known for its credit cards and customer rewards, but when it comes to checking accounts, it does rely on ChexSystems. Here’s what that means and where you can find better options if you’ve had problems in the past.
How ChexSystems Impacts Banking Access
ChexSystems is a consumer reporting agency that tracks banking behavior such as overdrafts, unpaid fees, and closed accounts. This information stays on your record for up to five years and is often reviewed by banks before approving new accounts.
Around 80% of banks and credit unions in the U.S. use ChexSystems to screen applicants. A negative record can lead to denied applications and make it harder to open a checking account. Some financial institutions offer second chance accounts to help people rebuild their history, but American Express does not.
American Express’s Policy on ChexSystems
American Express does use ChexSystems when reviewing checking account applications. If your report includes unpaid balances or closed accounts, your application may be declined.
At this time, American Express does not provide a second chance checking account, so it may not be a fit if you are working to reestablish your banking record.
No-ChexSystems Banking Alternatives
If ChexSystems is blocking you from opening an account with American Express, there are better paths forward. Several online banks and fintech companies don’t rely on ChexSystems and offer modern features, fast approval, and no hidden fees.
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.60% 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
Chime
- Up to 3.75% APY on a high-yield savings account
- Over 47,000+ fee-free ATMs
- Up to $200 fee-free overdraft coverage
- Get paid up to 2 days early with direct deposit
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.
