If you’ve struggled to open a checking account because of past banking issues, you’re not alone. Many people find themselves in this situation and want to know which banks are more flexible when it comes to account approval.
Citibank is one of the largest banks in the country, known for its wide range of financial products. However, it does use ChexSystems to review new checking account applications. Here’s what that means and how you can still find a bank that fits your needs.
How ChexSystems Impacts Your Banking Access
ChexSystems is a consumer reporting agency that tracks banking activity such as overdrafts, unpaid fees, and closed accounts. These records can remain active for up to five years, and most banks use this information to decide whether to approve new accounts.
Around 80% of banks and credit unions in the United States rely on ChexSystems to assess risk. A negative record can cause your application to be denied, limiting your access to traditional banking. Some financial institutions offer second chance accounts to help rebuild your history, but Citibank does not currently provide that option.
Citibank’s ChexSystems Policy
Citibank does use ChexSystems when reviewing applications for new checking accounts. If your record shows unpaid fees, overdrafts, or previous account closures, your application may be declined.
While Citibank offers several account options, it does not have a second chance checking program for those working to reestablish their banking history.
Better Banking Alternatives
If ChexSystems is preventing you from opening an account with Citibank, you still have other choices. Several online banks and fintech companies welcome customers with negative banking records and provide user-friendly accounts with simple approval processes.
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.
