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9 Credit Unions That Don’t Use ChexSystems in 2023
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.
9 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 some viable 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. NFCU 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 Credit Union 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.
AFCU’s Classic checking account comes with features such as free online and mobile banking, free bill pay, and direct deposit. You also get access to over 30,000 fee-free ATMs, which covers all 50 states and 10 countries.
Consumers Credit Union is another credit union that doesn’t use ChexSystems.
The Rewards Checking Account earns up to 5% APY on balances up to $10,000. It also offers unlimited ATM fee reimbursements, access to over 30,000 ATMs and 5,000 branches.
Additionally, the checking account offers convenient banking features such as online and mobile banking.
Another great feature of the account is the ability to get paid as much as two days early with early direct deposit. This can be a huge help if you’re living paycheck to paycheck or need to pay bills on time.
There are no monthly maintenance fees or minimum balance requirements. Plus, you can write unlimited checks.
American Airlines Credit Union has an Ascend Checking account that comes with no monthly service charge with direct deposit of $250 or more each month.
With unlimited access to more than 30,000 surcharge-free ATMs, you’ll never have to worry about paying extra to access your own money.
Additionally, you can get your paycheck up to two days early with direct deposit. The credit union also offers a variety of mobile and online banking features such as mobile check deposit, mobile wallet payment options, and free bill pay.
PenFed Credit Union offers several checking accounts. They all come with PenFed’s free Visa Debit Card and access to over 85,000 free ATMs nationwide through Allpoint and Co-op networks.
Additionally, PenFed’s 24/7 digital banking options allow you to manage your account online or through their mobile app.
One of the most appealing features of PenFed’s checking accounts is their “Get Paid Early” option, which allows you to receive your money up to 2 days sooner when you set up direct deposit.
The Free Checking account also has no monthly fees and no minimum balance requirements, making it an affordable and accessible option for anyone.
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.
The mobile app allows you to deposit checks, receive account alerts, and view bank statements from the comfort 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.
Texas Trust Credit Union is a suitable option for those who live in select counties in Texas. They offer several checking account options, some of which come with no monthly service fees and no minimum balance requirements.
One of the benefits of Texas Trust Credit Union is their debit card. Members have access to free ATMs owned by Texas Trust, as well as 55,000 fee-free ATMs within the AllPoint™ ATM Network.
This means you can easily access your money without having to pay extra fees. Additionally, the credit union offers unlimited check writing.
With online banking, you can view your account balances, transfer money, and pay bills, all from the comfort of your own home. Mobile banking is also available, which means you can access your bank account information and perform transactions on the go.
Lastly, Texas Trust Credit Union also offers overdraft protection. This feature can help prevent costly overdraft fees and help you manage your money more effectively.
Staley Credit Union caters to members in Illinois, Indiana, and Tennessee.
They offer several checking accounts, but the Staley Renew Checking account is designed for those who have faced difficulties in opening a checking account.
With all checking accounts, you get 24/7 access via online and mobile banking, free bill pay, and a contactless debit card. You also get access to over 30,000 free ATMs nationwide.
Be aware that there is a $50 minimum deposit required and a monthly maintenance fee of $7.
Staley Credit Union is chartered by the state of Illinois and offers account holders insurance coverage up to $500,000 through American Share Insurance and Excess Share Insurance Corporation.
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 suitable option for anyone who 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 bank account.
Alternatives to Consider
The credit unions mentioned in this article may not be suitable for your needs. 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:
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 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-free1 ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit2. Chime is one of the best second chance banking options available.
U.S. Bank is now offering the Bank Smartly® Checking account, a popular choice that can be applied for online in 26 states throughout the U.S.
If you’re based in any of the following states – AR, AZ, CA, CO, IA, ID, IL, IN, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, UT, WA, WI, or WY – you’re eligible to apply.
By opening a Bank Smartly® Checking account and a Standard Savings account, and completing qualifying activities, you have the potential to earn up to $400. Subject to certain terms and limitations. Offer valid through June 20, 2023. Member FDIC.
The account itself provides a variety of benefits, including a complimentary debit card that can be locked or unlocked if ever misplaced or stolen. U.S. Bank ATMs offer fee-free transactions, as do over 40,000 MoneyPass Network ATMs.
Although U.S. Bank uses ChexSystems, it’s typically known to be more accommodating with its regulations than many other banks. Unless there’s a history of fraud or any money owed to U.S. Bank, opening a checking account is a possibility.
The checking account requires just a $25 minimum opening deposit, with a monthly service fee of $6.95. The monthly fee can be waived by maintaining a minimum balance of $1,500, or by having a minimum monthly direct deposit of $1,000.
Chase is one of the most popular banks in the U.S. And now, they offer a checking account called Chase Secure Banking with no credit check, no ChexSystems, and no overdraft fees.
Account holders also get access to over 16,000 fee-free ATMs, free online bill pay, and free money orders and cashier’s checks.
With 4,700 locations across the country, this is an excellent option for anyone who prefers having access to physical branches.
Opening a Chase Secure Banking account comes with a $100 cash bonus when you use the card for 10 purchases within 60 days.
Account approval is immediate and you’ll receive your debit card within days. There is a small monthly service fee of $4.95. However, there is no minimum opening deposit to get started.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
Frequently Asked Questions
What is ChexSystems?
ChexSystems is a consumer reporting agency that banks and credit unions use to check the banking history of potential customers. This information can include whether someone has a history of bounced checks, unpaid fees, or other banking-related issues.
If someone has a negative record on ChexSystems, they may be denied a bank account or be offered an account with restricted features.
Why do credit unions use ChexSystems?
Credit unions, like banks, use ChexSystems as a way to verify a potential customer’s banking history and to help identify potential risks. ChexSystems provides credit unions with information about a consumer’s previous banking experiences, such as whether they have had a history of bounced checks or unpaid fees.
This information can help a credit union assess the risk of opening an account for a particular individual and can also be used to establish account terms and conditions.
Furthermore, they may use ChexSystems to comply with federal regulations requiring them to verify the identity of their customers and detect and prevent money laundering.
Do all credit unions use ChexSystems?
Many credit unions do use ChexSystems. However, there are also plenty that don’t. Credit unions can be a great alternative to traditional banks for people who have been flagged by ChexSystems. Unlike banks, credit unions are not-for-profit organizations that are owned and controlled by their members.
This means that they may be more willing to work with people who have a negative banking history. Many credit unions do not use ChexSystems or have more lenient policies when it comes to opening bank accounts for people with a ChexSystems record.
If you’ve been turned down for a checking or savings account due to a poor ChexSystems report, there are still options available to you. All 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. In the meantime, you can work to improve your ChexSystems report by utilizing good banking habits.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
Jamie Johnson is a freelance writer who has been featured in publications like InvestorPlace and GOBankingRates. She writes about various personal finance topics including student loans, credit cards, investing, building credit, and more.
