If you’ve been denied a checking account because of past banking problems, you’re not alone. Many people face this issue after overdrafts, unpaid fees, or closed accounts appear on their record.
Even if traditional banks have turned you down, there are still ways to rebuild your banking history and regain access to financial services.
How ChexSystems Can Limit New Account Approvals
ChexSystems is a consumer reporting agency that records certain banking activity, including overdrafts, unpaid fees, and closed accounts. These records can remain on your ChexSystems report for up to five years and may prevent you from opening new accounts.
Because about 80% of banks and credit unions use ChexSystems, a negative record can make it difficult to qualify for a new checking account.
Union Bank’s ChexSystems Policy Explained
Union Bank does use ChexSystems when reviewing new account applications. If your ChexSystems report includes negative information, it could affect your chances of being approved for a checking or savings account.
In addition, Union Bank does not offer a second chance checking account, which means applicants with a negative banking record may have difficulty opening an account.
How ChexSystems Can Affect Your Banking Options
A record in ChexSystems can limit access to standard accounts, but it does not completely block you from the banking system. Many financial institutions either skip ChexSystems or provide accounts specifically designed for people who need a second chance.
These accounts often come with key features such as direct deposit, debit card access, and online banking, giving you the ability to manage your money and improve your record over time.
Best Banks That Don’t Use ChexSystems
If Union Bank’s ChexSystems policy is creating challenges for you, there are several other banks that make it easy to open an account, even with a difficult banking history.
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.60% 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.
