If you’ve had trouble opening a checking account because of past banking issues, you’re not alone. Many banks rely on ChexSystems to review your record before deciding whether to approve a new account.
ChexSystems tracks things like overdrafts, unpaid fees, and closed accounts. These records can stay on file for up to five years, which can make it difficult to open new accounts while that information remains.
How ChexSystems Can Limit Banking Options
About 80% of banks and credit unions in the U.S. use ChexSystems as part of their screening process. If your record includes negative activity, you could be denied access to standard checking accounts.
That said, not all financial institutions rely on it. Some banks and credit unions offer second chance checking accounts that give you a way to rebuild your banking history and eventually qualify for regular accounts again.
Charles Schwab’s Policy on ChexSystems
Charles Schwab does use ChexSystems when reviewing new checking account applications. If your report contains negative entries, such as unpaid overdrafts or past account closures, your application may not be approved.
In addition, Charles Schwab doesn’t offer a second chance checking account, which means it may not be the best fit if you’ve had previous banking challenges.
Alternatives to Charles Schwab That Don’t Use ChexSystems
If you’re looking for a more flexible option, these banks make it easy to open a checking account without a ChexSystems review:
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.80% 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.
