Does Woodforest Bank Use ChexSystems?

Woodforest National Bank offers an account for customers with previous banking problems. You may not qualify for its standard checking account, but a negative banking record doesn’t always end the application.

Second Chance Checking gives you debit card access, checks, direct deposit, and digital banking. It also provides a defined route to Woodforest Checking after you manage the account successfully.

Woodforest Uses ChexSystems but Still Accepts Some Applicants

Woodforest Bank uses ChexSystems during its account-opening review. An unpaid balance, forced account closure, returned payment, or fraud record can prevent approval for a standard Woodforest account.

Woodforest differs from many banks because a negative ChexSystems consumer report doesn’t always rule out every account. Second Chance Checking is specifically offered to customers who have experienced prior bank account problems.

Approval still isn’t guaranteed. Woodforest can reject an application because of serious fraud concerns, identity verification problems, or other information that falls outside its acceptance rules.

Second Chance Checking Requires $25 to Open

Woodforest Second Chance Checking requires a $25 opening deposit. The bank also charges a one-time $9 account setup fee.

The monthly maintenance fee depends on whether the account receives direct deposit:

• With monthly direct deposit: The fee is $9.95 per month.
• Without monthly direct deposit: The fee is $11.95 per month.
• Paper statements: The fee is another $3 per month unless you choose electronic statements.

The monthly fee applies regardless of how much money you keep in the account. A larger balance won’t remove it.

Direct deposit reduces the annual maintenance cost by $24. Electronic statements prevent another $36 in yearly charges. Those two choices can make a meaningful difference during the first year.

The Account Includes Standard Checking Services

Second Chance Checking is not a limited prepaid product. It is a bank account with unlimited transactions and common checking services.

Account services include:

• Debit card: Use a Woodforest debit card for purchases and ATM withdrawals.
• Paper checks: Write checks without a monthly transaction limit.
• Direct deposit: Receive paychecks, benefits, and other eligible electronic deposits.
• Online banking: Check balances, move money, and pay bills online.
• Mobile banking: Review account activity and deposit eligible checks through the Woodforest app.
• Branch service: Get help at Woodforest branches, many of which operate inside Walmart stores.

The account doesn’t earn interest. Its main purpose is to restore access to checking and help you establish a positive deposit account record.

Woodforest Provides a Path to Standard Checking

One of the strongest features is the chance to move from Second Chance Checking to the regular Woodforest Checking account.

Woodforest lists four requirements:

• Complete Banking GPS: Finish the bank’s financial literacy course.
• Submit the certificate: Give the completion certificate to a Woodforest retail banker.
• Keep the account for 12 months: The Second Chance Checking account must remain open for at least one year.
• Maintain a positive balance: Your balance must be above zero when Woodforest checks your eligibility.

After you meet the requirements, Woodforest says the account will convert to Woodforest Checking in the following month.

The standard Woodforest Checking account can be cheaper. Its $7.95 monthly fee is waived when you receive at least $300 in monthly direct deposits or keep at least $300 in the account every day during the statement period.

That upgrade path gives Second Chance Checking a clear advantage over accounts that charge permanent second chance fees with no way to move into a standard product.

Woodforest Plus+ Second Chance Checking May Cost Less

Woodforest also offers Woodforest Plus+ Second Chance Checking. This version has no minimum opening deposit and earns interest on the daily collected balance.

Its monthly maintenance fee is:

• With monthly direct deposit: $5.95 per month.
• Without monthly direct deposit: $7.95 per month.

The account currently pays 1.00% APY and offers 2% cash back on qualifying purchases at Walmart stores, Walmart.com, Walmart fuel stations, and Dunkin’. Rewards are capped at $100 during the first year and $50 during later years.

Woodforest Plus+ Second Chance Checking also refunds up to two Woodforest fees for non-Woodforest ATM withdrawals each month. Third-party ATM surcharges are not included.

This account may cost less and provide better benefits than the original Second Chance Checking account. Availability may depend on the application and branch, so ask which version you qualify for before opening an account.

Overdraft Fees Can Still Become Expensive

Second Chance Checking gives you another opportunity to bank, but it does not protect you from every overdraft charge.

Woodforest may pay checks, ACH payments, and recurring debit card transactions that exceed your available balance. The bank can charge $32 for each paid overdraft, with a limit of three overdraft fees per day.

ATM and everyday debit card purchases are generally declined unless you choose to opt in to overdraft coverage for those transactions. An approved overdraft can still trigger the $32 fee.

You can reduce the risk when you:

• Decline debit card overdraft coverage: Ask Woodforest to reject everyday card purchases that exceed your available balance.
• Set balance alerts: Receive a notice before the account runs low.
• Watch pending transactions: A pending purchase can reduce the amount you have left to spend.
• Use direct deposit: Faster access to eligible deposits can help you keep the account funded.
• Avoid unnecessary checks: A check may reach the bank after you have spent money that was meant to cover it.

An account opened to repair your banking history can cause another negative record if you leave it overdrawn and unpaid. The overdraft rules deserve as much attention as the application requirements.

Is Woodforest Second Chance Checking Worth It?

Woodforest Second Chance Checking is a real second chance account, not merely a low-fee account with standard approval rules. It accepts some customers who cannot qualify for regular checking and offers a defined route to a standard Woodforest account.

The main drawback is cost. The original version can cost $119.40 per year with direct deposit, plus the one-time setup fee. Paper statements and overdrafts can raise the total much higher.

Woodforest Plus+ Second Chance Checking may offer better value due to its lower monthly fee, interest, debit card rewards, and $0 opening deposit. Confirm that it is offered in your area and that you qualify for it.

Woodforest is most appealing when you need branch access, have been denied because of ChexSystems, and plan to complete the 12-month upgrade process. Keep the account positive, use electronic statements, and avoid overdrafts so the second chance leads to a lower-cost account.

Other Banks That Don’t Use ChexSystems

If you prefer an account that doesn’t involve ChexSystems screening, several online banks offer easy approval and modern banking features without traditional restrictions.

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.