If you’ve been denied a checking account because of past banking issues, ChexSystems might be the reason. ChexSystems is a consumer reporting agency that tracks activity such as unpaid overdrafts, account closures, and returned checks. These records can stay on file for up to five years and often lead to denied applications when you try to open a new account.
Many people are surprised to learn that a single past mistake can affect their ability to access basic banking services. Knowing which banks use ChexSystems—and which ones don’t—can help you choose the right place to open your next account.
How ChexSystems Affects Bank Approvals
About 80% of U.S. banks and credit unions rely on ChexSystems when deciding whether to approve new accounts. If your record includes negative marks, a bank may automatically reject your application.
While ChexSystems helps financial institutions manage risk, it can also make life harder for customers who’ve already resolved their past issues. Fortunately, several banks and credit unions either skip ChexSystems checks or offer accounts designed to help people regain access to everyday banking.
Webster Bank’s ChexSystems Policy
Webster Bank does use ChexSystems to screen new checking account applicants. If your ChexSystems record shows unpaid fees, frequent overdrafts, or a previously closed account, your application may be denied.
That doesn’t mean you’re out of options, though. Many banks have moved away from using ChexSystems, offering accounts that can be opened quickly and easily—even if your record isn’t perfect. These alternatives provide a path toward rebuilding your financial flexibility.
Banks That Don’t Use ChexSystems
If you can’t open a checking account at Webster Bank, several other institutions make the process much simpler. These options don’t rely on ChexSystems and allow for easy online approval.
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.
