Does Wells Fargo Use ChexSystems?

Past overdrafts, unpaid balances, or account closures can make opening another checking account difficult. Wells Fargo takes a different approach from banks that rely on ChexSystems, but it still reviews your banking history.

The bank also offers Clear Access Banking for customers who can’t qualify for a standard account because of past credit or banking problems. Here’s how the account review works and what Clear Access Banking costs.

Wells Fargo Doesn’t Use ChexSystems

Wells Fargo doesn’t use ChexSystems when it reviews personal checking account applications. Instead, the bank uses Early Warning Services to review your deposit account history.

Early Warning Services tracks information about checking and savings accounts. Its consumer reports can include unpaid balances, account closures, returned payments, account misuse, and suspected fraud. Negative information can cause Wells Fargo to deny an application.

A clear ChexSystems consumer report doesn’t guarantee approval because the same banking problem can appear in an Early Warning Services consumer report.

Which Records Can Cause a Denial?

Wells Fargo can reject an application when your Early Warning Services consumer report shows recent or unresolved account problems.

Records that can affect approval include:

• Unpaid balances: Money owed to another bank or credit union can lower your approval chances.
• Suspected fraud: Fraud warnings or questionable deposits can cause a denial.
• Forced account closures: An account closed by another financial institution can affect the decision.
• Repeated overdrafts: Several unpaid overdrafts can show continued account problems.
• Returned payments: Returned checks or electronic transfers can raise concerns.
• Previous Wells Fargo debt: Money owed from an earlier Wells Fargo account can prevent approval.

Wells Fargo also verifies your identity. Incorrect information on your application can stop the account-opening process even when your banking history is clear.

Wells Fargo Offers Second Chance Checking

Wells Fargo offers second chance checking through Clear Access Banking.

The bank states that Clear Access Banking is available to customers who can’t open a standard account because of past credit or banking history. Those customers can’t convert the account to another Wells Fargo checking account during the first 365 days.

After 365 days, an eligible customer can request a conversion to another Wells Fargo consumer checking account. The account must remain open and in acceptable standing.

Clear Access Banking is a full bank account rather than a prepaid debit card. It includes a debit card, direct deposit, digital banking, Bill Pay, Zelle, and access to Wells Fargo branches and ATMs.

Clear Access Banking Costs $5 Per Month

Clear Access Banking requires $25 to open and charges a $5 monthly service fee. Wells Fargo provides several ways to avoid the fee.

The fee is waived during any fee period when you meet one of these requirements:

• Age requirement: The primary account owner is between 13 and 24 years old.
• Electronic deposits: The account receives at least $250 in qualifying electronic deposits.
• Military deposit: The account receives an eligible non-civilian military direct deposit through Wells Fargo’s military banking program.

Qualifying electronic deposits include certain direct deposits, instant payments, and third-party electronic credits. Transfers between your own accounts, mobile check deposits, branch deposits, ATM deposits, and Zelle payments don’t count toward the $250 requirement.

Clear Access Banking Has No Overdraft Fees

Clear Access Banking is a checkless account with no overdraft fees. Wells Fargo generally declines transactions when the account doesn’t have enough available money.

The account doesn’t include paper checks or Wells Fargo’s standard overdraft services. You can still pay bills through digital banking or use a debit card for purchases.

An account can still become negative in limited situations. Wells Fargo requires you to repay any negative balance promptly, even though it doesn’t charge an overdraft fee.

This structure can help prevent the repeated overdraft charges that caused prior banking problems.

Who Can Open Clear Access Banking?

Anyone age 17 or older can be the primary owner of a Clear Access Banking account. Customers ages 13 through 17 must open the account at a branch, and customers ages 13 through 16 need an adult co-owner.

Online applicants must be at least 18 and provide:

• A Social Security number or individual taxpayer identification number
• A physical address in the United States
• A personal mobile phone number
• Accepted identification
• At least $25 for the opening deposit

Wells Fargo can request more documents when it can’t verify your identity electronically.

Clear Access Banking vs. Everyday Checking

Everyday Checking is Wells Fargo’s standard checking account. It supports paper checks and optional overdraft services, but it charges a $15 monthly service fee unless you meet a waiver requirement.

Clear Access Banking is better suited to someone who:

• Needs a second chance bank account
• Wants no overdraft fees
• Doesn’t need paper checks
• Can receive at least $250 in qualifying electronic deposits
• Wants a predictable monthly cost

Everyday Checking can work better when you need paper checks and qualify for its monthly fee waiver. It isn’t the better choice when overdrafts caused your earlier banking problems.

Review Your Early Warning Services Consumer Report

Request your Early Warning Services consumer report before applying. It can show the deposit account history that Wells Fargo reviews.

Check the consumer report for:

• Accounts you don’t recognize
• Incorrect unpaid balances
• Paid debts listed as unpaid
• Incorrect closure reasons
• Suspected fraud that doesn’t involve you
• Wrong personal information

Early Warning Services allows consumers to request a consumer report and dispute inaccurate information.

You should also review your ChexSystems consumer report. Wells Fargo doesn’t use it for personal checking applications, but another bank or credit union can check it later.

What to Do if Wells Fargo Denies You

Read the adverse action notice to see which consumer reporting company affected the decision. When Wells Fargo used Early Warning Services, the notice should provide its contact information.

Request your consumer report and dispute any inaccurate information. Include payment receipts, account statements, or identity theft records that support your claim.

When the information is accurate, contact the financial institution that reported the unpaid balance. Ask how to pay it and when the account status will be updated.

You should also ask whether you qualify for Clear Access Banking. A denial for Everyday Checking doesn’t mean Wells Fargo has no account available.

Banks That Don’t Use ChexSystems

If you’re looking for more flexibility, several banks and credit unions don’t use ChexSystems at all. These alternatives make it easier to open an account and begin rebuilding your financial profile.

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 450 banks that offer second chance checking accounts.