Does Bank of America Use ChexSystems?

Past overdrafts, unpaid balances, and forced account closures can make another checking account harder to open. Bank of America reviews this banking history before it approves a new account.

The bank also offers Advantage SafeBalance Banking for customers who need a low-cost account with stronger spending limits. Here’s how the ChexSystems review works and what the account costs.

Bank of America Uses ChexSystems

Bank of America uses ChexSystems when it reviews checking and savings account applications. Negative information in your ChexSystems consumer report can lead to a denial.

The bank can review unpaid balances, repeated overdrafts, returned payments, account closures, and suspected fraud. It can also check your identity and information from other consumer reporting companies.

An older paid overdraft can receive different treatment from recent fraud or an unpaid account balance. Bank of America doesn’t publish a list of ChexSystems entries that always cause a denial.

Which ChexSystems Records Can Affect Approval?

Recent and unresolved banking problems create the highest risk. Bank of America can consider several types of negative account activity.

• Unpaid balances: Money owed to another bank or credit union can reduce your approval chances.
• Suspected fraud: Fraud warnings or questionable deposits can cause a denial.
• Forced account closures: An account closed by another financial institution can affect the decision.
• Repeated overdrafts: Several unpaid overdrafts can show continued account problems.
• Returned payments: Returned checks or electronic transfers can raise concerns.
• Previous Bank of America debt: Money owed from an older Bank of America account can prevent approval.

Paying a valid balance doesn’t remove the entry immediately. The updated status still shows that you resolved the debt.

Bank of America Offers Second Chance Checking

Bank of America offers second chance checking through Advantage SafeBalance Banking.

The account provides standard banking services without paper checks or overdraft fees. Bank of America generally declines or returns transactions when your available balance can’t cover them. It doesn’t charge a fee when it declines or returns an item because of insufficient funds.

These safeguards can help prevent the overdraft charges and unpaid balances that caused earlier banking problems. SafeBalance Banking remains subject to Bank of America’s account review, so approval isn’t guaranteed after serious fraud or unresolved debt.

SafeBalance Banking Costs $4.95 Per Month

Advantage SafeBalance Banking charges a $4.95 monthly maintenance fee. You need at least $25 to open the account.

Bank of America waives the monthly fee when you meet one of its requirements:

• Age requirement: At least one account owner is younger than 25.
• Minimum balance: You maintain a minimum daily balance of at least $500.
• Rewards status: You qualify for an eligible Bank of America rewards tier.

Check the current fee disclosure before opening the account. Bank of America can change its waiver requirements.

What SafeBalance Banking Includes

SafeBalance Banking is a checkless account, but it includes the services most people need for everyday spending.

Account features include:

• Debit card access: Make purchases and withdraw cash with a Bank of America debit card.
• Mobile banking: Review transactions, transfer money, and control your debit card through the app.
• Mobile check deposits: Deposit eligible checks without visiting a financial center.
• Bill Pay: Schedule eligible one-time and recurring payments online.
• Zelle: Send and receive eligible payments through digital banking.
• Direct deposit: Receive paychecks, benefits, and other eligible electronic deposits.
• Account alerts: Receive notices about balances, deposits, withdrawals, and card activity.
• ATM access: Use Bank of America ATMs without a Bank of America withdrawal fee.

The account doesn’t include paper check writing. Payments can be made through a debit card, Bill Pay, Zelle, ACH transfers, and other electronic methods.

SafeBalance Banking Has No Overdraft Fees

Bank of America doesn’t charge overdraft item fees on SafeBalance Banking. Transactions are usually declined or returned when the account lacks enough available money.

Balance Connect overdraft protection isn’t available with SafeBalance Banking. You can’t link another Bank of America account as backup coverage for transactions that exceed your balance.

A merchant or service provider can still charge a fee after a payment is returned. You should also repay any negative balance that results from a delayed transaction, deposit reversal, or other adjustment.

Set up low-balance alerts and check your available balance before making a payment. These steps can help keep the account in acceptable standing.

SafeBalance Banking vs. Advantage Plus Banking

Advantage Plus Banking is Bank of America’s standard checking account. It includes paper checks and access to Balance Connect overdraft protection.

SafeBalance Banking is better suited to someone who:

• Wants transactions declined instead of paid into overdraft
• Doesn’t need paper checks
• Wants a lower monthly maintenance fee
• Can maintain at least $500 or qualify for another waiver
• Needs an account with predictable costs

Advantage Plus Banking can work better when paper checks and linked overdraft protection matter. It can also charge overdraft item fees on eligible transactions. Bank of America currently lists a $10 overdraft item fee for accounts that permit paid overdrafts.

Check Your ChexSystems Consumer Report Before Applying

Review your ChexSystems consumer report before Bank of America checks it.

Look for:

• Unknown accounts: An account you don’t recognize can point to identity theft.
• Incorrect balances: Confirm that every reported amount is accurate.
• Paid debts shown as unpaid: A resolved balance should display the correct status.
• Wrong closure reasons: Make sure the former financial institution described the account correctly.
• Incorrect dates: A reporting error can make an older problem appear more recent.

Accurate negative information can generally remain for five years. Paying a valid balance usually won’t remove the entry early, but the reporting institution should update its status.

Dispute inaccurate or incomplete information. Include payment receipts, account statements, or identity theft records that support your claim.

What You Need to Open the Account

Bank of America accepts SafeBalance Banking applications online and at its financial centers. Online applicants need basic personal and funding information.

Prepare:

• A Social Security number
• Your date of birth
• A physical address in the United States
• A phone number and email address
• Information for each joint account owner
• A debit card or bank account for the opening deposit

Bank of America can request more identification when it can’t verify your information electronically.

What to Do if Bank of America Denies You

Read the adverse action notice to learn whether ChexSystems affected the decision. The notice should identify any consumer reporting company that supplied information.

Request your ChexSystems consumer report and inspect the entry that caused the denial. File a dispute when the information is incorrect.

Contact the bank or credit union that reported an accurate unpaid balance. Ask how to pay it and when the status will be updated.

You should also ask whether SafeBalance Banking is available after a denial for another Bank of America checking account.

Other Banks That Don’t Use ChexSystems

If you prefer to avoid ChexSystems entirely, several banks and credit unions make it easier to open an account regardless of your past. These options provide flexible approval and modern account features.

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 450 banks that offer second chance checking accounts.