Does Santander Use ChexSystems?

Past banking problems can affect your ability to open a new checking account. Banks may review unpaid overdrafts, accounts closed with negative balances, and suspected fraud before they approve an application.

Santander offers checking accounts with low monthly fees and no overdraft charges. However, its application process may still create problems for people with negative banking records. Here’s what to expect before you apply.

Santander Checks ChexSystems

Santander Bank uses ChexSystems when it reviews checking account applications. The bank may deny your application if your ChexSystems consumer report shows unpaid debt, suspected fraud, or serious account problems.

However, Santander may not reject every applicant who has a negative record. The bank changed its screening policies in 2015 after an agreement with the New York attorney general. Under that agreement, Santander agreed to review more details instead of rejecting applicants based only on negative ChexSystems information.

Santander doesn’t publish its current approval standards. Your results may depend on the type of record, how old it is, and whether you still owe money.

Which ChexSystems Records Matter Most?

A negative ChexSystems record doesn’t always have the same effect. A small paid overdraft from several years ago may receive different treatment from recent fraud or an unpaid balance.

The following records may make approval harder:

• Unpaid bank balances: Money owed to another bank or credit union can reduce your chances.
• Suspected fraud: Fraud-related entries may result in a denial.
• Forced account closures: Santander may question an account that another bank closed because of repeated problems.
• Returned checks: Several unpaid checks may suggest a pattern of account misuse.
• Repeated overdrafts: Frequent overdrafts and returned payments may lead to closer review.

Santander may also verify your identity and review information from other consumer reporting companies. A clean ChexSystems consumer report doesn’t guarantee approval if the bank can’t confirm your identity.

Check Your ChexSystems Consumer Report Before You Apply

ChexSystems collects information about checking account applications, openings, and closures. Banks use its consumer reports to assess the risk of opening new accounts.

Request your ChexSystems consumer report before you apply to Santander. Review the account names, balances, dates, and reasons for closure.

Look for debts that you already paid and accounts that you don’t recognize. Incorrect information could result from a reporting mistake, identity theft, or a mixed consumer file.

Most negative ChexSystems records remain for five years. Paying a valid balance usually won’t remove the record early, but ChexSystems should update it to show that the debt has been paid.

You can dispute information that is inaccurate or incomplete. Include copies of bank statements, payment records, or other documents that support your claim.

Does Santander Offer a Second Chance Checking Account?

Santander doesn’t advertise a checking account as a second chance account. Its Essential Checking account may still appeal to people who want simple fees and no overdraft charges, but applicants should expect a ChexSystems review.

Essential Checking has a $4 monthly fee. Santander waives the fee when any account owner is under 26 or at least 65.

The account doesn’t allow overdrafts. Santander generally declines transactions when the account lacks enough money, so you won’t pay overdraft fees. It also includes online banking, mobile banking, a debit card, and access to Santander ATMs.

The account’s features can help customers avoid new overdraft problems. They don’t make the approval process more flexible, and Santander doesn’t promise to accept applicants with negative ChexSystems records.

Other Santander Checking Account Options

Simply Right Checking is another basic option. It has a $10 monthly fee, but Santander waives the fee when one transaction posts during the calendar month. The fee is also waived when any account owner is under 26.

A qualifying transaction can include a deposit, withdrawal, payment, or transfer. The account may work for someone who uses checking regularly and wants an easy way to avoid the monthly fee.

Santander Select Checking has a $25 monthly fee. The fee can be waived with at least $25,000 in eligible combined balances. This account is less likely to fit someone who needs a basic checking account after past banking problems.

Account terms may change, so check the current fee schedule before you apply.

How to Improve Your Approval Chances

You can’t guarantee that Santander will approve you, but these steps may help:

• Review your ChexSystems consumer report: Check for unknown accounts, incorrect balances, and outdated information.
• Pay valid debts: Resolve unpaid bank balances when possible.
• Request an update: Ask the bank that reported the debt to mark it as paid.
• Dispute errors: Send ChexSystems records that show why an entry is wrong.
• Confirm your identity: Make sure your name, address, Social Security number, and identification match.
• Apply at a branch: A Santander employee may help with identity documents or application questions.

Avoid sending several checking account applications at once. Find out why Santander denied you before you apply somewhere else.

What to Do if Santander Denies Your Application

Santander should send a notice if information from a consumer reporting company affected its decision. The notice should identify the company that supplied the information and explain how to request a copy.

Review that consumer report before you take another step. ChexSystems may not be the reason for the denial. Santander could have relied on another consumer reporting company or had trouble verifying your identity.

Dispute any incorrect records. If the information is accurate, pay outstanding balances when possible and consider a bank that doesn’t use ChexSystems or a second chance checking account.

Best Banks That Don’t Use ChexSystems

Here are some strong alternatives if you can’t open a checking account at Santander:

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.