Getting turned down for a checking account can be frustrating, especially when it’s due to something in your past banking record. The good news is that not every financial institution uses the same approval standards, so you still have options.
State Employees’ Credit Union, better known as SECU, serves members across North Carolina and beyond. It’s a respected credit union with a strong reputation, but like most traditional institutions, SECU does rely on ChexSystems when reviewing new checking account applications.
How ChexSystems Impacts Your Ability to Open an Account
ChexSystems is a consumer reporting agency that collects details about your banking activity—things like overdrafts, unpaid fees, or closed accounts. These records remain visible to banks and credit unions for up to five years.
About 80% of U.S. financial institutions consult ChexSystems when evaluating new customers. If your record contains negative entries, such as unpaid balances or account closures, that history can cause your application to be declined. Some banks offer second chance accounts to help rebuild your standing, but SECU does not currently provide that option.
SECU’s Approach to ChexSystems
SECU does use ChexSystems to screen all new checking account applications. If your report shows previous issues, like unpaid overdrafts or charged-off accounts, it can prevent you from being approved. Since SECU doesn’t offer a second chance account, members with a negative record may need to explore alternatives.
Banking Options That Don’t Rely on ChexSystems
If SECU’s policies are standing in your way, there are still plenty of ways to open a new account. Several online banks and fintech companies skip ChexSystems entirely and focus instead on helping you move forward with simple, low-fee banking.
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.
