If you’ve been denied a checking account because of past banking issues, you’re not alone. Many banks use ChexSystems, a consumer reporting agency that tracks activity such as overdrafts, unpaid fees, and closed accounts. These records can stay active for up to five years, making it harder to open new accounts during that time.
Knowing which banks use ChexSystems can help you avoid unnecessary rejections and find institutions that give you a fair chance to manage your money.
How ChexSystems Influences Bank Approvals
Around 80% of U.S. banks and credit unions use ChexSystems when deciding whether to approve new customers. A record showing unpaid fees or account closures can result in a denied application, even if the issue is years old.
While ChexSystems helps banks manage risk, it often makes it difficult for consumers to rejoin the banking system. Fortunately, some financial institutions don’t rely on it or offer easier paths to open new accounts without strict screening.
Synchrony Bank’s ChexSystems Policy
Synchrony Bank uses ChexSystems to evaluate new checking account applications. If your ChexSystems record includes negative marks, it could affect your ability to open an account.
This approach helps the bank minimize risk but can create barriers for people trying to rebuild their financial standing. If you’ve been declined due to ChexSystems, there are still several banks that don’t rely on this screening process.
Banks That Don’t Use ChexSystems
If Synchrony Bank’s ChexSystems policy makes it difficult to open an account, you have alternatives. These banks don’t check ChexSystems and offer flexible, easy-to-open accounts that work well for anyone with a past banking issue.
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.
