Most people have never heard of a little-known agency called ChexSystems, but it can have serious consequences for those who’ve had problematic relationships with financial institutions. ChexSystems operates much like the credit score system in that it tracks financial transgressions and can affect future banking relationships. However, the similarities end there.
Unlike the credit score program, which creates a virtual score based on borrowing habits, the ChexSystems only keeps a history of transactions between a client and their bank. Unfortunately it only keeps track of negative transactions, including bounced checks, forced closure of bank accounts, and fraud. While the system doesn’t rate banking activity on a scoring system, a problematic notation can still mark a client’s banking history.
For anyone who has had a problem with banking transgressions, this history can be difficult to erase. Thankfully banking history is only tagged to a client for a maximum of five years (less depending on the transgression). For those who can’t wait to clear their record there are some banks that don’t rely on Chexsystems to confirm the banking history of new clients. Below is a quick reference guide to nine of the most popular banks that don’t use Chexsystems.
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The first option on our list is Chime Bank, the technology focused online bank centered around its mobile app. A Chime checking account is completely free with no monthly fees, no overdraft fees, and no minimum balance requirements, and it does not take your ChexSystems information into consideration. The app includes several features not offered by typical banks, including daily balance updates, instant transaction alerts, and automated bill paying, where the bank creates and mails a check at no extra cost. Because of all of these features, it is extremely easy to open and maintain an account.
7 Other Banks That Don’t Use ChexSystems
Woodforest National Bank
For clients seeking a relatively widespread bank offering second chances, Woodforest National Bank is a great option. They have an initial startup cost of $34, plus monthly account fees starting at $9.95. Like all the other institutions on this list they require no credit score check or review of your ChexSystems history; a perfect option for many people.
PNC Bank is trying to educate new clients through its Foundations Checking account. This account must be opened in person through a local branch and requires the customer to complete its educational program called Foundations of Money Management Course. While perhaps a bit more onerous than other potential banking options, PNC is trying to assist users in moving beyond their financial history. They have a small $7 monthly fee, as well as a $25 minimum initial deposit. The good news is that consumers can graduate into a healthy banking relationship once they have a proven positive track record.
Green Dot Bank
Green Dot Bank is revolutionizing the market for people struggling with poor ChexSystems ratings. Even for individuals who have previously suffered from high overdraft fees or had other experiences which may have left a mark on their history, Green Dot Bank offers a service that doesn’t rely on either ChexSystems or credit score. Instead, they provide a prepaid debit card which works just like a regular card but protects the user from overspending and the resulting financial repercussions. The debit card also allows clients to write checks, pay bills online, deposit checks, and send money to other Green Dot members free of charge. By using this prepaid debit card, consumers can still make in-store purchases for a small fee per transaction, as well as making purchases online with no transaction fee.
The United Bank offers excellent services to those rejected by other banks but is somewhat limited by its restricted area of operations. Currently they are only open for business within Maryland, Virginia, Ohio, Pennsylvania, and Washington. The United Bank services can be a financial lifesaver for those lucky enough to live in those areas. Their services do not rely on ChexSystems references and are a good option because they only require a $50 minimum deposit to open an account and have no subsequent monthly fees.
One of the largest banks in America hasn’t neglected the down trodden bank client. They provide a service to consumers called the Opportunity Checking Account which doesn’t rely on consumer reporting agencies to confirm new clients. This particular account needs to be opened in person but allows the owner to make all the usual transactions like bill payments and online banking. There is a relatively high monthly fee of $10 per month, but this is waived if the client deposits over $500 each month, maintains a balance of $1,500, or makes ten debit purchases.
Southwest Financial Federal Credit Union
Another friend to the disenfranchised banking consumer is Southwest Financial Federal Credit Union. They provide banking services without doing any consumer report background checks. One of the services they offer is something called a Checkless Checking account, which is exactly what it sounds like – a checking account that operates completely without any paper checks. On top of this, all checking accounts come with a required savings account to hopefully encourage their clients to start tucking a little money away for a rainy day. Their checking and savings accounts also have no standard monthly charges.
>> Read More: Credit Unions With No ChexSystems
BBVA Compass is one of the top banks for people who have experienced issues opening accounts at other banks due to Chexsystems issues. For those who have been refused elsewhere, the first place to try again should be a BBVA Compass location. BBVA’s services include free checking accounts which can easily be applied for online. The only downside is they currently only have branches within a handful of states: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.