Has your application for a checking account been rejected because of a negative banking history? If so, it’s essential to know that there are alternatives available that can help you open an account, even if you’ve had issues in the past.
ChexSystems is a consumer reporting agency that tracks certain banking activities like unpaid fees, overdrafts, and account closures. These records can stay on your file for up to five years, potentially impacting your ability to open new accounts during that time.
ChexSystems’ Role in the Banking Industry
Roughly 80% of U.S. banks and credit unions rely on ChexSystems to screen applicants for new accounts. A negative ChexSystems report can make it challenging to be approved for traditional banking services. Banks use this information to assess the risk of new customers based on their banking history, which may result in declined applications.
Citizens Bank’s ChexSystems Policy
Citizens Bank does check ChexSystems when reviewing new account applications. If your report contains negative entries, your application could be declined.
Alternatives to Citizens Bank
Even if Citizens Bank uses ChexSystems, you still have other options. Several banks and credit unions do not rely on ChexSystems to approve new accounts. Here are a few excellent 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 4.30% 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.
Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.