Getting turned down for a checking account can feel discouraging, especially when you’re trying to move forward financially. Many banks rely on ChexSystems to review your history before approving new accounts.
ChexSystems tracks things like unpaid fees, overdrafts, and closed accounts. These records can stay on your file for up to five years, which often makes it harder to open new accounts during that period.
How ChexSystems Can Affect Your Banking Options
Around 80% of banks and credit unions in the United States use ChexSystems to evaluate new applicants. If your record includes negative information, your application could be denied.
While this can create obstacles, not every financial institution relies on ChexSystems. Some offer second chance checking accounts that help people rebuild their banking record and regain access to everyday financial services.
HSBC’s Policy on ChexSystems
HSBC uses ChexSystems when reviewing checking account applications. If your ChexSystems file includes negative entries, such as unpaid balances or account closures, your application may not be approved.
Unlike some banks, HSBC does not currently offer a second chance checking account. This can make it more challenging for people with past banking issues to open an account directly with them.
Alternatives to HSBC That Do Not Use ChexSystems
If HSBC’s policy makes opening an account difficult, there are several banks and credit unions that provide easier options for approval. Here are a few to consider:
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.
