Have you been turned down for a checking account due to a negative banking history? If so, you’re not alone. Thankfully, there are alternative banking solutions available that can help you manage your finances, even if you’ve been denied by traditional banks.
ChexSystems is a consumer reporting agency that monitors banking activities, such as unpaid fees, overdrafts, or account closures. A record in ChexSystems can remain for up to five years, which can make it difficult to open new accounts. Since about 80% of banks and credit unions in the U.S. use ChexSystems, this can present a major obstacle for many individuals.
M&T Bank’s ChexSystems Policy
If you’re considering opening a checking account with M&T Bank, it’s worth noting that they do use ChexSystems to screen applicants. If your ChexSystems report includes negative information, such as unpaid fees or overdrafts, it could affect your chances of being approved.
Why ChexSystems Records Matter
Since many banks rely on ChexSystems to evaluate potential customers, having a negative record can limit your access to standard banking services. Issues like overdrafts or unpaid fees could stay on your report for up to five years, making it harder to open a new account. However, there are still plenty of options for those looking to overcome this hurdle.
Alternatives to M&T Bank That Don’t Use ChexSystems
Although M&T Bank uses ChexSystems, you still have other options. Several banks and credit unions don’t rely on ChexSystems to approve new accounts. Here are three excellent alternatives to consider:
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.
Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.