If you’ve been turned down for a checking account due to a negative banking history, it can feel like your options are limited. ChexSystems is a consumer reporting agency that tracks your banking activities, including unpaid fees, overdrafts, and account closures. These records can stay on file for up to five years, making it difficult to open new accounts during that time.
The Impact of ChexSystems on Your Banking Choices
Around 80% of banks and credit unions in the U.S. rely on ChexSystems when evaluating account applications. A negative report can lead to denied applications, restricting access to essential banking services. However, not all financial institutions use ChexSystems, and some offer “second chance” accounts that help people with past banking challenges rebuild their financial standing.
Space Coast Credit Union’s ChexSystems Policy
Space Coast Credit Union does use ChexSystems to review checking account applications. If your ChexSystems report contains negative information, such as unpaid fees or overdrafts, your application will likely be denied. This can be frustrating, but there are alternatives to consider.
Banking Without ChexSystems: Your Alternatives
If Space Coast Credit Union’s use of ChexSystems is holding you back, don’t worry—there are other banks and credit unions that don’t rely on this system. Here are some excellent alternatives to explore:
U.S. Bank
- Up to $400 sign-up bonus
- $25 minimum opening deposit
- Monthly service fee can be waived
- Over 40,000 fee-free ATMs
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 4.50% 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
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.
Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.