Have you been turned down for a checking account due to a negative banking history? If so, you’re not alone. The good news is that alternative banking options are available to help you move forward, even if traditional banks have declined your application.
ChexSystems is a consumer reporting agency that tracks your banking behaviors, such as unpaid fees, overdrafts, and account closures. These records can stay active for up to five years, which may make it challenging to open new accounts. With approximately 80% of banks and credit unions in the U.S. relying on ChexSystems, this can present an obstacle for many.
ChexSystems and Its Impact on Your Banking Options
A ChexSystems record can limit your ability to open a new checking account with many financial institutions. However, there are alternatives. Some banks offer second chance accounts, and others do not use ChexSystems at all, providing opportunities to rebuild your banking profile and access the services you need.
Western Alliance Bank’s Policy on ChexSystems
Western Alliance Bank does use ChexSystems when evaluating new account applications. This means that a negative report could affect your chances of being approved for a checking account.
Other Banks to Consider
If ChexSystems has created barriers with Western Alliance Bank, there are other options. Several banks and credit unions don’t rely on ChexSystems, offering more flexibility. Here are three excellent alternatives to consider:
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 4.50% 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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