If you’ve been denied a checking account because of a negative banking record, you’re not alone. Many banks use ChexSystems, a consumer reporting agency that tracks your banking activity — including unpaid overdrafts, closed accounts, and unpaid fees.
These records can stay active for up to five years, which can make opening a new account feel impossible. But not all banks rely on ChexSystems, and knowing which ones do can help you find the right fit faster.
How ChexSystems Impacts Your Banking Options
Roughly 80% of banks and credit unions across the U.S. use ChexSystems reports to screen new applicants. If your record includes negative activity, your application might be denied before you even have a chance to explain the situation.
ChexSystems was designed to help banks manage risk, but it often limits access to everyday financial tools for people who’ve already resolved their past issues. Luckily, more financial institutions are beginning to look beyond ChexSystems, offering alternatives for those who deserve a second chance.
HomeStreet Bank’s ChexSystems Policy
HomeStreet Bank does use ChexSystems when reviewing applications for new checking accounts. The bank relies on this data to assess an applicant’s banking history and identify potential risks.
If your ChexSystems record includes unpaid balances or previous account closures, your application may not be approved. While this can be discouraging, several other banks and credit unions offer checking accounts that don’t involve ChexSystems checks. These options can help you rebuild your financial stability without unnecessary roadblocks.
Banks That Don’t Use ChexSystems
If HomeStreet Bank’s policy doesn’t work in your favor, there are other banks that make it easier to open a checking account. The following options don’t use ChexSystems and provide full digital access with easy 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.
