Banking with a troubled financial history can be difficult. If you’ve had problems opening a checking account, you’re not alone. Many people look for different banking options, and Varo is often mentioned. Let’s examine Varo’s stance on ChexSystems and what this means for potential customers.
How ChexSystems Affects Your Banking Choices
ChexSystems is a consumer reporting agency that banks use to evaluate potential customers. It keeps records of banking activities, including account closures, overdrafts, and unpaid fees. This information helps banks assess risk when opening new accounts.
The impact of ChexSystems on the banking industry is significant:
- About 80% of banks and credit unions in the U.S. use ChexSystems.
- Information in ChexSystems can stay active for up to five years.
- A negative ChexSystems report can lead to denied account applications.
- Some banks provide “second chance” accounts for those with negative reports.
Varo and ChexSystems
Varo does not use ChexSystems when reviewing account applications. This policy is good news for those with a negative banking history, as it means you can open an account with Varo regardless of your ChexSystems record.
Other ChexSystems-Free Options
While Varo’s policy is attractive, it’s good to know your options. Here are a few other banks that don’t use ChexSystems:
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 4.30% 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.
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