If you’ve ever been turned down for a checking or savings account, then you’re probably already familiar with ChexSystems. The consumer reporting agency keeps a record of any banking issues you’ve had over the years under the Fair Credit Reporting Act (FCRA).
Your ChexSystems report will include things like account overdrafts, bounced checks, and suspected cases of fraud. Many of these items will stay on your report for five years or more.
When you apply to open a new account, most banks and credit unions will use your ChexSystems report to either approve or deny your request. Fortunately, more banks and credit unions are moving away from relying on the ChexSystems report.
5 Credit Unions That Don’t Use ChexSystems
Trying to improve your ChexSystems report can be a hassle, and fortunately, it isn’t always necessary. However, if you’re looking to open an account at a credit union, here are five good options that don’t use ChexSystems.
If you or a family member is a military member, then Navy Federal Credit Union is an excellent option for you. The national credit union offers checking accounts, savings accounts, certificates of deposit (CDs), money market accounts, and more.
As a member, you’ll have access to more than 300 branch locations across the country, as well as thousands of free ATMs. In addition, Navy Federal has been recognized for offering outstanding customer service to its members.
Navy Federal also provides a wide variety of lending products at competitive interest rates. However, before you can get started, you’ll need to find out if you qualify to become a member.
America First Credit Union offers free checking and savings accounts to its members. The credit union is based in Utah, and members typically live in western states like Utah, Arizona, Nevada, and Idaho.
Branch locations are limited, but America First does provide a nationwide ATM network. The credit union also provides various savings products with interest rates that are competitive with what many banks offer.
Southwest Financial Federal Credit Union is based in Dallas, but members can join from anywhere, thanks to their 100% virtual services. You can log into your eBrand account to view your accounts, transfer money, and pay bills.
And thanks to the mobile app, you can deposit checks, receive account alerts, and view your bank statements without ever stepping foot outside of your home. In addition, the credit union provides various services, including checking, savings, retirement accounts, and lending products.
And if you ever need to visit an ATM, then Southwest Financial has got you covered. Members can access one of the 55,000 Allpoint ATMs located worldwide.
There are a lot of benefits that come with being a member of Aspire Federal Credit Union. You’ll receive access to over 70,000 ATMs nationwide, mobile banking options, and 24/7 customer support.
Plus, Aspire partners with several companies to provide its members with valuable discounts. Members can save money on products from Sprint, TurboTax, SimpliSafe, and more.
State Department Federal Credit Union (SDFCU) offers memberships to individuals affiliated with the Department of State. They currently have over 80,000 members worldwide.
SDFCU offers free checking, savings, youth accounts, and various lending products. Additionally, the interest rates are competitive, making SDFCU a good option for anyone that qualifies for membership.
To get started, you’ll need to check your eligibility first. If you meet the eligibility requirements, you’ll need to provide your address, Social Security Number, and driver’s license to open the account.
Alternatives to Consider
It’s possible that the credit unions outlined in this article won’t be the right fit for your situation. For example, credit unions tend to have stricter guidelines for memberships, and many are only available to individuals in certain states.
If you’re looking for some other alternatives, here are three you can consider:
Best Banks That Don’t Use ChexSystems
With Chime, a bad credit score is no longer a deal-breaker. They offer an award-winning mobile bank account and debit card with no credit check.
There are no hidden bank fees. And by that, we mean no overdraft fees, no monthly maintenance charges, no foreign transaction fees, and no minimum balance fees – ever.
They offer over 60,000 surcharge fee-free ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit. Chime is one of the best second chance banking options available.
Sable claims to be the “The world’s fastest, most premium path to financial freedom.”
You can open a bank account and get a debit card and secured credit card in 5 minutes. That is pretty fast.
With a Sable account, there are no fees, no credit checks, and no minimum deposit required. On top of that, you can get an unsecured credit card in about 4 months. That’s 3x faster than what traditional banks offer.
And the Sable credit card offers 2% cashback on your favorite brands.
Another unique feature is that you don’t need a social security number or U.S. credit history. Plus, you can send money to 55+ countries and get multilingual customer support.
Current is one of the fastest-growing mobile banking solutions in the U.S., with over one million members. However, Current is a financial technology company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit report.
Some features of the Current mobile banking account include fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance or hidden fees.
You can get paid up to two days early with direct deposit. And you earn up to 15x points and cashback when you use your Visa debit card at participating merchants.
See also: 20 Banks That Don’t Use ChexSystems
If you’ve been turned down for a checking or savings account due to a poor ChexSystems report, then there are options available to you. All of the credit unions and banks outlined in this article will let you open an account without looking at your ChexSystems report.
This will make it easier for you to continue to pay your bills and go about your daily life. And in the meantime, you can work to improve your ChexSystems report by utilizing good banking habits.