Have you been turned down for a checking account due to a negative banking history? If so, it’s important to understand your options and explore alternative banking solutions available to you.
ChexSystems is a consumer reporting agency that keeps track of your banking activities, such as unpaid fees, overdrafts, and account closures. These records can stay on file for up to five years and may impact your ability to open new accounts.
How ChexSystems Affects Your Banking Opportunities
With approximately 80% of banks and credit unions in the U.S. relying on ChexSystems, a negative report can lead to your application for a checking account being declined. Many financial institutions use ChexSystems to evaluate potential customers based on their past banking habits, which can limit your access to traditional banking services.
Digital Federal Credit Union (DCU) and ChexSystems
If you’re looking to open a checking account with Digital Federal Credit Union (DCU), you might be wondering if they use ChexSystems. Unfortunately, the answer is yes. DCU does use ChexSystems when reviewing applications for new checking accounts. If you have negative information in your ChexSystems report, such as unpaid fees or closed accounts, your application could be rejected.
ChexSystems-Free Banking Alternatives
If DCU’s ChexSystems policy presents a barrier for you, there are still other options available. Several banks and credit unions do not rely on ChexSystems, providing opportunities to open an account without worrying about past banking issues. Here are some great alternatives worth considering:
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.