If you’ve ever been denied a checking account because of past banking issues, you’re not alone. Many banks rely on ChexSystems, a consumer reporting agency that tracks things like overdrafts, unpaid fees, and closed accounts.
Negative records can stay on your ChexSystems file for up to five years, which can make it tough to open a new account. Luckily, some banks don’t use ChexSystems at all and even offer second-chance accounts to help you rebuild your banking history.
How ChexSystems Impacts Your Banking Options
Roughly 80% of banks and credit unions across the U.S. review ChexSystems reports when deciding whether to approve new accounts. If your file includes negative activity, you could be denied a checking account.
Still, some financial institutions don’t use ChexSystems or offer second-chance accounts that make it easier to rebuild your banking record and regain access to standard services.
South State Bank’s Policy on ChexSystems
Yes. South State Bank does use ChexSystems when evaluating checking account applications. If your ChexSystems report includes negative activity, your application may be declined.
That said, there are still great alternatives. Many banks and credit unions do not rely on ChexSystems and make it easy to open an account, even with a difficult banking past.
Alternatives to South State Bank That Don’t Use ChexSystems
If South State Bank’s policy doesn’t work for you, here are a few trusted options that don’t use ChexSystems:
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.
