If your application for a checking account has been declined due to a negative banking history, you might feel limited in your options. ChexSystems is a reporting service used by many banks and credit unions to track your banking behavior, such as overdrafts, unpaid fees, or account closures. This information can stay on your report for up to five years, making it harder to open new accounts.
How ChexSystems Can Limit Your Banking Choices
Around 80% of U.S. financial institutions use ChexSystems to assess the risk of new customers. When you apply for a checking or savings account, your ChexSystems report is often reviewed. If there are any negative marks, your application could be denied.
While this can be frustrating, it’s important to know that not all banks rely on ChexSystems, and some offer accounts specifically designed for individuals with a problematic banking history.
Armed Forces Bank and ChexSystems
The good news is that Armed Forces Bank does not use ChexSystems when reviewing applications for checking accounts. This makes them a great option if you’ve struggled to open an account due to a ChexSystems report.
Armed Forces Bank offers various account types, including checking and savings options, without the barrier of a ChexSystems check. This can be especially beneficial for military members and their families, as the bank is focused on serving those connected to the armed forces.
Other Banks That Don’t Use ChexSystems
While Armed Forces Bank is a solid choice, there are other options available that also don’t rely on ChexSystems. Here are some alternatives to consider:
U.S. Bank
- Up to $400 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 4.50% 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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