If you’ve been denied a checking account because of past banking issues, you’re not alone. Overdrafts, unpaid fees, and closed accounts can follow you for years, making it difficult to open new accounts.
Even if traditional banks have turned you down, there are financial institutions that can help you rebuild your banking record and start fresh.
How ChexSystems Can Affect Your Access to Banking
ChexSystems is a consumer reporting agency that tracks certain banking activity, including overdrafts, unpaid fees, and account closures. Negative information can remain on your ChexSystems report for up to five years, which may make it harder to open a new account.
Because around 80% of banks and credit unions use ChexSystems, a past issue can make it difficult to qualify for a checking account with many financial institutions.
Western Alliance Bank’s ChexSystems Policy Explained
Western Alliance Bank uses ChexSystems when reviewing new account applications. If your ChexSystems report includes negative information such as unpaid balances or excessive overdrafts, it could affect your approval chances for a checking or savings account.
In addition, Western Alliance Bank does not offer a second chance checking account, which means customers with a negative banking record may find it more difficult to open an account.
What to Do If You’ve Been Denied a Bank Account
Getting denied for a new account can be frustrating, but it doesn’t mean you’re out of options. Some banks and credit unions don’t use ChexSystems at all, while others have accounts built for people who need to rebuild their financial record.
These accounts typically include basic features like debit card access, mobile banking, and direct deposit, allowing you to manage your finances and work toward a clean record.
Banking Options That Don’t Use ChexSystems
If ChexSystems is holding you back at Western Alliance Bank, these trusted alternatives make it easier to open an account and start managing your money again.
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.
