Have you been denied a checking account because of a poor banking history? If so, there are still options available, including banks that don’t rely on ChexSystems for their approval process.
ChexSystems is a consumer reporting agency that tracks banking behaviors like unpaid fees, overdrafts, and account closures. This information can stay on your record for up to five years, making it difficult to open new accounts in that period.
How ChexSystems Can Affect Your Ability to Open Accounts
Roughly 80% of banks and credit unions in the United States use ChexSystems when reviewing account applications. If your report includes negative entries, such as overdrafts or unpaid fees, this could result in your application being denied, limiting your access to traditional banking services.
Flagstar Bank’s Policy on ChexSystems
Flagstar Bank does use ChexSystems when reviewing new account applications. If your ChexSystems report includes any negative information, such as unpaid fees or past overdrafts, it may affect your chances of being approved for a checking account.
Alternatives to Flagstar Bank
If Flagstar Bank’s ChexSystems policy is an issue for you, there are several other banks and credit unions that don’t depend on ChexSystems for their account approval process. Consider these excellent alternatives:
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.
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