If you’ve ever been denied a checking account because of past banking issues, you’re not alone. Many people run into this problem and want to know which banks are more flexible about approval.
Discover Bank is one of the most popular online banks in the country, but it does rely on ChexSystems when screening new customers. Here’s what that means and where you can still open an account if you’ve had problems in the past.
How ChexSystems Impacts Your Banking Options
ChexSystems is a consumer reporting agency that tracks your banking history. It keeps a record of overdrafts, unpaid fees, and closed accounts. Most banks use this information to help decide whether to approve your application for a new account.
Roughly 80 percent of banks and credit unions in the United States use ChexSystems. Negative records can remain active for up to five years, which often leads to denied applications. Some banks offer second chance accounts designed to help rebuild your banking history, but not all institutions provide that option.
Discover Bank’s ChexSystems Policy
Discover Bank does use ChexSystems to review new account applications. If your record includes unpaid fees, charge-offs, or account closures, it may prevent you from opening a checking account with them.
At this time, Discover Bank does not offer a second chance checking account, so it might not be a good fit if you are working to reestablish your banking record.
Alternatives to Discover Bank That Don’t Use ChexSystems
If ChexSystems is keeping you from opening an account with Discover Bank, several online banks provide a smoother path to banking access. These options do not rely on ChexSystems and are designed to help you manage your money easily while rebuilding financial stability.
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.60% 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.
