If you’ve been turned down for a checking account in the past, you’re not the only one. Many banks review your banking history through ChexSystems 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 harder to open new accounts while that information remains.
How ChexSystems Can Limit Account Access
Most banks and credit unions in the U.S. use ChexSystems to screen new applicants. If your file includes negative activity, such as unpaid overdrafts or an account closed with a balance, your application could be declined.
Even so, not every financial institution relies on ChexSystems. Some banks and credit unions offer second chance checking accounts designed to help people rebuild their banking history and regain access to standard accounts.
Flagstar Bank’s Policy on ChexSystems
Flagstar Bank does use ChexSystems when reviewing new checking account applications. If your record shows unpaid fees or other negative marks, that information could affect your approval.
If this policy keeps you from opening an account, you still have options. Several banks don’t depend on ChexSystems, making it possible to open a checking account and start managing your finances again without unnecessary barriers.
Alternatives to Flagstar Bank That Don’t Use ChexSystems
If Flagstar Bank’s ChexSystems policy doesn’t fit your situation, consider these trusted banks that don’t rely on ChexSystems for approval:
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.
