Does SECU Use ChexSystems?

State Employees’ Credit Union serves millions of members across North Carolina, but membership alone doesn’t guarantee approval for every account. Past overdrafts, unpaid bank balances, and forced account closures may affect what you can open.

SECU offers standard checking and a card-based spending account with no nonsufficient funds fees. The best choice depends on your banking history and the payment features you need.

SECU Uses ChexSystems

State Employees’ Credit Union uses ChexSystems when it reviews new checking account applications. Negative information in your ChexSystems consumer report may affect whether you’re approved.

SECU may consider the type of entry, how recently it occurred, and whether you still owe money. An older account closure with a paid balance may receive different treatment from recent suspected fraud or unpaid bank debt.

The credit union may also verify your identity, confirm your membership eligibility, and review any past accounts you held with SECU.

Which ChexSystems Records May Affect Approval?

SECU doesn’t list every record that will cause an application to be denied. Recent and unresolved banking problems may present the greatest concern.

Possible issues include:

• Unpaid bank balances: Money owed to another bank or credit union may lower your approval chances.
• Suspected fraud: Fraud warnings or questionable deposits may result in a denial.
• Forced account closures: An account that another financial institution closed may raise concerns.
• Repeated overdrafts: Several unpaid overdrafts may show continued account problems.
• Returned payments: Returned checks or electronic payments may affect the review.
• Previous SECU debt: Money owed from an older SECU account may need to be paid first.

A valid entry may remain after you pay the balance. Its updated status can still show SECU that the debt has been resolved.

You Must Qualify for SECU Membership

SECU membership isn’t open to everyone. Eligible groups include employees and retirees of the state of North Carolina, workers at certain related organizations, and immediate family members of current SECU members.

People who share an economic unit with an eligible member may also qualify. SECU may request a utility bill or similar document as proof of the shared household.

You must open a Share Account with at least $25 before you can establish checking. SECU also requires a taxpayer identification number, an unexpired government-issued photo ID, and proof that you meet its membership rules.

Meeting the membership rules doesn’t guarantee checking approval. SECU can approve your membership account but decline another product after its account review.

SECU Checking Costs $1 Per Month

SECU’s standard Checking Account has no minimum opening deposit or ongoing minimum balance requirement. It pays a variable dividend on the account balance.

The account charges $1 per month. You can direct that amount to the SECU Foundation or treat it as a standard monthly maintenance fee.

Standard checking includes:

• Debit card access: Use an SECU Visa debit card for purchases and ATM withdrawals.
• Direct deposit: Eligible deposits may arrive up to one day early.
• BillPay: Schedule payments through Member Access or the SECU app.
• Mobile deposits: Deposit eligible checks through the mobile app.
• Check writing: Pay by check or authorize ACH withdrawals.
• Account dividends: Earn interest without maintaining a set balance.

SECU allows a combined total of 50 checks, teller-cashed items, and mobile check deposits each statement period. Additional items cost 20 cents each.

CashPoints Global Offers Stronger Spending Controls

SECU also offers CashPoints Global. This card-based account may appeal to members who want to avoid overdrafts and returned-payment fees.

CashPoints Global charges $1 per month and has no minimum balance requirement. It includes a debit card, direct deposit, and BillPay. It doesn’t support paper checks or ACH drafts.

The account also has no nonsufficient funds fees. Transactions that exceed your available balance are generally declined instead of creating a negative account balance.

CashPoints Global isn’t advertised as second chance checking. SECU may still review ChexSystems and apply its normal account-opening rules.

Still, its payment limits may help members avoid the overdrafts and returned checks that caused earlier banking problems.

SECU Doesn’t Offer Clear Second Chance Checking

SECU doesn’t currently advertise a checking account with separate second chance approval standards.

CashPoints Global provides safer spending controls, but that doesn’t mean applicants with serious ChexSystems entries will qualify. The account’s features affect how it works after approval. They don’t remove SECU’s application review.

Call SECU before applying when your ChexSystems consumer report contains recent fraud, unpaid bank debt, or several forced account closures. Ask whether CashPoints Global has different approval rules from standard checking.

Check Your ChexSystems Consumer Report Before Applying

Review your ChexSystems consumer report before SECU checks it.

Look for:

• Unknown accounts: An account you don’t recognize may be tied to identity theft.
• Incorrect balances: Confirm that every reported amount is accurate.
• Paid debts shown as unpaid: A resolved balance should have the correct status.
• Wrong closure reasons: Make sure the former financial institution reported what happened correctly.
• Incorrect dates: A date error may make an older problem appear more recent.

Accurate negative information can generally remain for five years. Paying a valid balance usually won’t remove it early, but the financial institution should update the entry to show that it was paid.

Dispute information that’s inaccurate or incomplete. Send copies of payment receipts, account statements, or identity theft records that support your claim.

SECU Offers Tools to Prevent Returned Payments

SECU members can enroll standard checking in its free Overdraft Transfer Service. The service moves available money from up to two linked SECU accounts when checking doesn’t have enough funds.

Members who enroll can also use Another Chance alerts. SECU sends a notice when the checking account may have an item returned for insufficient funds. You then have a limited opportunity to add available money.

Standard checking receives one nonsufficient funds fee-free day each calendar year. After that day has been used, SECU charges $12 for each eligible item denied or returned because of insufficient funds.

What to Do if SECU Denies You

Ask whether ChexSystems affected the decision. SECU should provide an adverse action notice when information from a consumer reporting company contributes to a denial.

Request your ChexSystems consumer report and review the entry that caused the problem. File a dispute when the information is wrong.

Contact the financial institution that reported an accurate unpaid balance. Ask how to pay it and when the updated status will appear.

A denial may also involve membership eligibility or identity verification. Confirm that your application matches your identification and that you supplied the required proof of eligibility.

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.

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.