If you’ve been denied a checking account because of past banking issues, you’re not alone. Many people find themselves in this position after overdrafts, unpaid fees, or closed accounts show up on their record.
Even if a traditional bank has turned you down, you still have options. The key is knowing which banks use ChexSystems and which ones don’t.
What ChexSystems Is and Why It Matters
ChexSystems is a consumer reporting agency that tracks specific banking behaviors, such as unpaid fees, overdrafts, or accounts closed for nonpayment. These records can remain on your ChexSystems report for up to five years, making it harder to open new accounts during that time.
Since around 80% of banks and credit unions in the United States use ChexSystems, negative records can make everyday banking more difficult.
KeyBank’s ChexSystems Policy
KeyBank does use ChexSystems when reviewing new checking account applications. If your ChexSystems report includes negative information, it may affect your approval chances.
This policy helps the bank evaluate risk, but it can also create a roadblock for anyone working to rebuild after financial setbacks.
Why ChexSystems Can Limit Your Banking Options
When a bank reviews your ChexSystems report, it’s checking for signs of past banking problems. A negative record—such as unpaid overdrafts or account closures—can lead to an automatic denial.
Still, not all financial institutions rely on ChexSystems. Many banks now offer alternative accounts or skip the screening process altogether, giving you a chance to reestablish a solid financial foundation.
Best Alternatives to KeyBank That Don’t Use ChexSystems
If KeyBank’s ChexSystems policy is holding you back, several banks welcome customers who have been denied elsewhere. Here are three trusted options to consider.
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.
