Does PenFed Credit Union Use ChexSystems?

PenFed Credit Union offers nationwide membership, online account access, and more than 85,000 surcharge-free ATMs. You don’t need a military connection to join.

Past banking problems can still make account applications stressful. Here’s how PenFed handles ChexSystems, which checking accounts it offers, and what may affect your application.

PenFed Credit Union Doesn’t Use ChexSystems

PenFed Credit Union doesn’t use ChexSystems when it reviews checking account applications. Negative information in your ChexSystems consumer report shouldn’t disqualify you by itself.

This may help if another bank denied your application because of unpaid overdrafts, account closures, or returned payments. You don’t have to wait for an accurate ChexSystems entry to disappear before you apply.

Approval still isn’t guaranteed. PenFed must verify your identity and may review other information for fraud prevention and account security. Money owed from a previous PenFed account may also create a problem.

What Could Still Prevent Approval?

PenFed can deny or delay an application for reasons unrelated to ChexSystems. Make sure every detail matches your official records.

Possible problems include:

• Identity verification: PenFed may request more documents if it can’t confirm your identity.
• Incorrect information: A wrong Social Security number, address, or date of birth may stop the application.
• Suspected fraud: Conflicting details or fraud warnings may lead to a denial.
• Previous PenFed debt: An unpaid balance from an older PenFed account may need to be resolved.
• Account restrictions: PenFed may limit access after serious misuse of a prior account.
• Missing documents: You may need a government-issued identification document to complete the process.

A ChexSystems record may not decide the outcome, but applicants still need to meet PenFed’s account-opening requirements.

Anyone Can Join PenFed Credit Union

PenFed was once closely associated with military members and federal employees. Membership is now open to anyone nationwide. No military service is required.

You become a member through a PenFed savings account. The Regular Share Savings account establishes your ownership in the credit union.

PenFed also lets new customers establish membership through its Premium Online Savings account. That account requires a $5 opening deposit and has no monthly maintenance fee.

You’ll generally need your Social Security number, contact information, and an accepted form of identification. PenFed may request more information when it can’t verify your application electronically.

Free Checking Has No Monthly Service Fee

PenFed Free Checking has no monthly service fee and no monthly minimum balance requirement. You don’t need to receive direct deposit or maintain $500 in the account to keep it free.

The account includes:

• Debit card access: Make purchases and withdraw cash with a PenFed debit card.
• Mobile deposits: Deposit eligible checks through the PenFed mobile app.
• Online Bill Pay: Schedule one-time and recurring payments.
• Early direct deposit: Eligible payments may arrive up to two days early.
• Zelle access: Send and receive eligible payments through PenFed.
• ATM access: Use more than 85,000 surcharge-free ATMs nationwide.
• Cash deposits: Add cash through eligible retail and ATM locations.

PenFed provides the first three eligible retail cash deposits each month without a service fee. Additional retail cash deposits currently cost $2 each.

Free Checking may be the better choice when you want a simple account without monthly activity requirements.

Access America Checking Can Earn Dividends

Access America Checking pays dividends when you receive at least $500 in recurring monthly direct deposits. The account requires at least $25 to open.

The account has a $10 monthly service fee. PenFed waives it when you meet either of these conditions:

• Direct deposit: Receive at least $500 in qualifying monthly direct deposits.
• Daily balance: Maintain a daily account balance of at least $500.

The dividend applies to eligible balances up to $50,000. Rates can change, so check PenFed’s current rate page before you open the account.

Access America Checking may work when you expect to meet the fee waiver every month. Free Checking may cost less when your income or balance changes often.

PenFed Doesn’t Offer Second Chance Checking

PenFed doesn’t advertise a separate second chance checking account. It doesn’t need a special non-ChexSystems product if ChexSystems isn’t part of its standard checking review.

That doesn’t mean PenFed must approve every applicant with a negative banking history. Identity concerns, suspected fraud, or an unpaid PenFed balance may still cause a denial.

The Free Checking account can help prevent future problems because it has no monthly service fee or minimum balance requirement. However, other charges can still apply.

Review the account agreement for overdraft transfers, returned payments, stop payments, replacement cards, wire transfers, foreign transactions, and cash deposit fees.

Review Your ChexSystems Consumer Report Anyway

PenFed doesn’t use ChexSystems, but you should still check your ChexSystems consumer report.

Another bank or credit union may review it later. Errors can also point to identity theft or an account that doesn’t belong to you.

Check for:

• Unknown accounts: An account you don’t recognize may involve identity theft.
• Incorrect balances: Make sure each reported amount is accurate.
• Paid debts shown as unpaid: A resolved balance should show the correct status.
• Wrong closure reasons: Confirm that the former financial institution described the closure correctly.
• Incorrect dates: An error may make an older entry appear more recent.

Accurate negative information can usually remain for five years. Payment of a valid debt normally won’t remove the entry early, but the record should show that you paid it.

Dispute information that’s inaccurate or incomplete. Include payment receipts, account statements, or identity theft documents that support your claim.

Is PenFed a Good Choice After a Bank Account Denial?

PenFed may be worth considering when ChexSystems caused another bank to turn you down. Nationwide membership also removes the geographic and employment restrictions found at many credit unions.

The account works best when you’re comfortable with digital banking. PenFed has some branches, but its network is much smaller than the branch systems of major national banks.

PenFed may fit you if you need:

• A checking account without a ChexSystems review
• No monthly service fee
• No monthly minimum balance
• Nationwide fee-free ATM access
• Mobile check deposits and Bill Pay
• Early access to eligible direct deposits

It may be less convenient if you regularly need teller service or live far from a PenFed branch.

What to Do if PenFed Denies You

Ask PenFed for the specific reason. Since it doesn’t use ChexSystems for checking applications, the issue may involve identity verification, fraud screening, missing information, or a previous PenFed account.

Review your application for mistakes. Confirm that your name, address, Social Security number, and date of birth match your identification and government records.

When PenFed used another consumer reporting company, request the adverse action notice. The notice should identify the company that supplied the information. Get a copy of that consumer report and dispute any errors.

You may also need to submit identification or speak with a PenFed representative before you apply again.

Other No-ChexSystems Banking Options

If you’re exploring multiple options, several banks and credit unions also make it easy to open an account without ChexSystems screening.

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 450 banks that offer second chance checking accounts.