ChexSystems is a national consumer reporting agency. It keeps track of all consumers’ banking activities. Banks are the ones responsible for providing their customers’ banking information. The information is then consolidated in a single database for reference. The consumers’ distinguishing identifier is the social security number. All Banks and credit unions subscribed to the ChexSystems database have access to this information. All they need is your social security number, and they can check your banking history.
Negative account activities and anomalous transactions constitute the ChexSystems contents. If, for example, a customer has numerous bounced checks, pending fees, the Bank will report such information.
Unlike the Credit bureau, the functioning of ChexSystems is not familiar to many people. Most consumers are caught unawares of financial institutions mayhems. Such as; Banks declining their new account creation, merchants rejecting their checks, etc.
However, it is worth mentioning that ChexSystems is just an information center. It doesn’t make decisions on whom or what consumers are creditworthy. However, Banks will base their decisions on the information on this ChexSystems database.
Data Stored in The ChexSystems For Banks
- Any suspected electronic fraud activities. These may include impersonation, information altering, check fraud, etc.
- Your bounced checks and overdrafts.
- Your pending negative balances.
- Violation/bending of Banking rules and regulations.
- Involuntary checking account closures. A bank may suspend an account due to suspected involvement in fraudulent activities.
- Misuse of Bank electronic cards such as ATM cards, debit cards, gift cards, etc.
- Abuse of savings accounts in a bid to beat the outlined procedures.
If you find your account application not going through, you may have been blacklisted in ChexSystems. This shouldn’t worry you, though. Millions of Americans find themselves in the same boat. The good news is: you can still open an account. All you need to do is avoid any bank that uses ChexSystems.
Top 14 Best Banks Review That Don’t Use ChexSystems
You may think such banks are rare, but no. The fact is that about 20% of the country’s local and international banks don’t use this system. To make your search easier, we have compiled the list of all non-ChexSystems banks below.
1. BBVA Online Checking
BBVA online is our best pick. The institution relies on Early Warning Services (EWS) instead of ChexSystems. They have among the top best offers in the industry. The account is also available across all states except two- Hawaii and Alaska.
Features and Benefits
- Neither service charges nor mandatory monthly fees.
- No minimum balance requirement
- Free and robust mobile app.
- Daily cash back rewards when you make payments via a debit card with simple Cashback.
- You don’t pay ATM fees at all BBVA ATMs and the available more than 64,000 All point®.
- Free money transfers between contacts within the U.S. through instant money platforms such as Venmo, Popmoney, etc.
- 24/7 customer care services.
- Customized real-time notification system.
- Free personified Visa debit cards with zero liability that cushions you in case of fraudulent purchases through your debit card.
- You can open an account with an initial deposit as low as $25.
- You can write unlimited number checks free of charge.
2. Chime Bank
This is a purely online-based non-ChexSystems bank. It is the fastest growing and has already spread across all the fifty states. Chime doesn’t rely on applicants’ credit score or history in its operations. Therefore, your poor credit ratings don’t have to haunt you. Chime has got you.
The bank processes are speedy. Direct deposits take the shortest time compared to other banking options—one of Chime’s outstanding features, the user-friendly mobile app. You have access to your account balances anytime from anywhere. You also receive real-time notifications about all your account transactions.
The automatic savings feature is another impressive addition. For every purchase you make with Chime, the cost is rounded off to the nearest figure. The extra dollars are moved to your default savings account.
Features and Benefits
- No minimum deposit is required to open an account.
- Offers free online payment processing, check deposits, and banking option.
- You enjoy a free overdraft up to a maximum of $100.
- There are no outstanding monthly service charges.
- You receive a free customer Visa debit card.
- Free foreign money transactions. You are not charged to send money to international contacts.
- Access to a large pool of ATMs and 38,000 MoneyPass shops across the globe.
- Offers a direct check deposit. Chime can process your checks two days earlier than the other banking system.
3. SoFi Money
For money savers, SoFi Money is their go-to banking option. It is a money management account that doesn’t rely on ChexSystems. The checking account opening process takes a concise period. With Sofi, you will receive your payments via high yielding interest rates on your account balance.
With this, you don’t pay any monthly charges to keep your account active—additionally, no deposit requirement when opening your account.
After signing up, you are entitled to a versatile SoFi debit Master card. You can use this card to make payments across all the 50 states where the Master card is accepted.
Features and Benefits
- No monthly minimum balance requirement
- An initial opening deposit is not a requirement.
- All money transfers are free of charge.
- ATM charges are reimbursed.
- A cash reward of $50 if you make a direct deposit of at least $500 after signing up.
- A debit MasterCard that you can use at all places accepting Master Cards.
- User-friendly mobile application. That offers educational services on top of account management options.
4. Varo Bank
Varo Bank is another excellent, no online charge bank. The Bank doesn’t use the ChexSystems database to vet their customers. In short, they’re willing to bank with consumers with bad credit ratings.
All the Varo transactions are on mobile apps. Both Android and iPhone device users can access these services.
Features and Benefits
- No monthly account maintenance fee.
- No minimum balance requirement for your account
- Not require an initial deposit to set up an account.
- No hidden charges included such as debit card replacement fees and transfer fees.
- Upon payroll notification, Varo can initiate a direct deposit to your account faster than most of the banks will.
- Provides reliable budgeting tools to help in financial decision making.
- It offers automated savings plans.
5. Wells Fargo Bank
If you are looking for a non-ChexSystems banks with a known physical location, Wells Fargo may be your best bet. Your state of residence doesn’t matter. The Wells Fargo Opportunity checking account option is available across the fifty states.
This special account option allows Wells Fargo to tap the consumers who cannot access the standard checking option. You are allowed to open only a limited noncredit checking account. However, you can access almost all basic banking services, including mobile app services.
Features and Benefits
- There’s no minimum account balance requirement.
- Wells Fargo has an extensive spread network of branches in the U.S.
- To set up an account, you have to make an initial deposit of $25.
- A robust smartphone app that supports online payments and deposits.
- Additional features that help in your account management. They include account activity alerts, fraud monitoring tools, and zero liability.
- Mandatory $10 monthly maintenance fee. However, this fee can be waived if you meet certain requirements. These include; maintaining a minimum daily balance of $1,500, making direct deposits amounting not less than $500, or making at least 10 debit card transactions.
- The Opportunity checking comes with My money watch report and budget watch. These are money tracking apps that can help you keep track of your expenditure.
6. GoBank
GoBank is another pure online-based option for simple banking. To set up an account, you purchase a GoBank starter kit. The kit is available at various partners’ retailer shops such as Walgreens, CVS, and Kroger. Once you verify your identity, you can use the GoBank debit card. The Bank approves your application almost instantly as it does not crosscheck your ChexSystems report.
You can use the debit card to withdraw money at ATMs and make purchases. Also, you can write checks instead of using money orders which attract hefty charges.
Features and Benefits
- You can receive expedited direct deposits in your account.
- There is a monthly service charge of $8.95. The Bank can waive the fee if you receive direct deposits amounting to at least $500.
- To open an account, you have to pay a minimum deposit of $20.
- The GoBank mobile app has fancy features such as the fortune teller. This feature uses a special algorithm to help you make important financial decisions.
- You can transfer your money using whichever mode you want. Either electronically or through paper checks.
7. Navy Federal Credit Union
Navy Federal Credit Union (NFCU) is a unique traditional bank for military service persons. It provides standard checking accounts without factoring neither EWS nor ChexSystems history. To access Bank services, you must be either a U.S. military retiree or inactive duty. Military here means members of any of the following categories; Armed Forces, National and Coast Guard, and the Department of Defense.
Features and Benefits
- Offers free mobile deposits.
- Free online bill payments
- The Bank provides monthly dividend crediting.
- Gives free debit cards to all members, whether active or ex-service.
- Overdrafts account protection. This is possible due to the automated savings transfer plan or optional service you can opt in to.
- Free traditional name only checks.
8. T.D. Ameritrade
T.D. Ameritrade is some kind of a brokerage Bank. It entirely doesn’t use ChexSystems or any other history database to crosscheck their applicants. To open an account, you may be required to open a brokerage account and pull a soft credit.
This account is best suited for tech savvies. Account opening and all transactions are exclusively online-based. The best thing with T.D. Ameritrade is that you can open an account without depositing a single dollar.
Features and Benefits
- No monthly bank charges to maintain your account.
- No minimum deposit requirement.
- There is no set minimum monthly account balance.
- Provides free ATM withdrawals.
- You can write as many checks as you want.
- User-friendly mobile banking app.
- Your deposits yield profits in the form of interest.
9. Axiom Bank
Axiom aims at giving consumers second chances with their opportunity checking account. The Bank doesn’t check the applicants’ creditworthiness. Even if with access to your bad credit history, Axiom will not base their decision on it.
If you have previously made some financial blunders, you can be sure to rise again with Axiom. A major drawback of Axiom is that it is only available in central Florida.
Features and Benefits
- Provides free mobile banking, including deposits and transfers.
- You have to pay a minimum deposit of $25 to set up an account.
- To keep your account active, you have to pay a monthly fee of $12.95.
- No minimum balance requirement.
- Doesn’t use any credit rating system. Not EWS or ChexSystems.
10. United Bank
Having low or no credit isn’t a problem when you want to bank with United Bank. However, the Bank is only available in a few locations that include; Washington DC, Virginia, Maryland, Pennsylvania, and Ohio.
It offers various tailored customer products such as personal loans, secured credit cards, and checking accounts. When subscribing to these plans, though, you should watch out for the accompanying fees.
Features and Benefits
- There is no monthly minimum account balance required.
- Monthly charges for account maintenance are $10. You can also qualify for this fee waiver if you reach at least fifteen purchases per month. Alternatively, you can ensure that you maintain a minimum regular deposit of $500.
- No minimum deposit requirement to open an account.
11. Renasant Bank
Renasant doesn’t consult any consumer reporting systems such as ChexSystems, Telecheck, or EWS.
The Bank is, however, limited to Tennessee, Alabama, Mississippi, Florida, and Georgia states. Other factors, such as owing Bank to the Bank, may disqualify you. If you reside in these states and have poor credit, it may be your time to consider Renasant Bank.
Features and Benefits
- A minimum deposit of $50 is a must to set up a checking account.
- A monthly fee of $7.50 if you don’t qualify for the waiver. The waiver conditions are if you can maintain at least $500 in your account.
12. Peoples Bank
Peoples Bank has a special type of accounts for people with bad credit and those blacklisted by the ChexSystems. If you are that person, the Bank opens an FDIC insured checking account for you. However, if you have been reported for fraudulent activities, you won’t be eligible.
The good thing is that the Bank is available across all the fifty states.
Features and Benefits
- Mandatory monthly maintenance fee of $4.95.
- Access to mobile apps allows a wide range of online transactions, such as online bill payments and money transfers.
- A minimum deposit of $30 is required to set up an account.
- Free debit MasterCard.
13. Radius Bank
This is one of the most available non-ChexSystems members. The Bank is available across all the fifty U.S. states. It runs an Essential Checking account that can help you manage your funds. The advanced technology avails essential features at a lower fee.
Features and Benefits
- Offers free debit Mastercard
- Powerful and user-friendly smartphone application. It supports online check deposits and bill payments at no extra cost.
- A monthly account service fee of $9 is a requirement.
- To set up an account, you have to pay a minimum deposit of $10.
- No minimum account balance requirement.
- After one successful, responsible banking, you can upgrade your account.
14. Acorns Spend Checking Account
It is among the most versatile online banking platforms. Acorns offer both checking and investing options to consumers—both with intuitive programs.
After setting up your Acorn account, you receive a Visa debit card. For every transaction you make with your card, Acorn systems will round off the nearest dollar cost. The extra funds will be invested in your ETF wallet.
Features and Benefits
- Unlimited ATM withdrawals
- No overdraft charges.
- No minimum balance requirement is imposed.
- Supports direct deposits
- The funds are insured up to $250,000
- Supports mobile check deposits.
- Automated bills payments.
What Are The Options If You Are Listed in ChexSystems?
Being listed in ChexSystems doesn’t mean you can’t enjoy the benefits of a checking account. Among the first option is turning to the no ChexSystems Banks. These will allow you to open a new account without factoring in your creditworthiness.
The other option is going for second chance banks. These provide you with an opportunity to amend your credit ratings. Some will allow you to upgrade your account after banking with them responsibly for a given period.
If the above techniques do not work, you can then opt to other non-ChexSystems methods that include;
- Prepaid cards – These are cards that you have to load money on before spending it. Different prepaid cards have different methods of reloading cash on them. You can opt to load your cash on these cards instead of having to walk around with it.
- Secured credit cards– These cards allow you to access all car services, such as making online payments and stores. However, the major disadvantage is that you have to place your cash as collateral. You also have to pay additional interest in credit card balances.
- Online services – several legit online e-wallets also will allow you to store your money online. Such example is PayPal. Some can even give you debit cards for ease of transacting.
- Foreign bank accounts–if you reside near the border countries such as Mexico or Canada, you may consider opening an account in those countries. Different countries have different banking regulations, and you may find yourself qualified there.
Why is No ChexSystems Banks the Best Choice?
Most of the no ChexSystems Banks have common benefits such as;
- No minimum balance is required for your account.
- Low to no monthly charges at all.
- Allow traditional check writing.
- Most of them offer mobile online banking.
- Access to large ATM networks.
- Online payments through your card have a zero liability in case of fraudulent purchases.
What’s the Difference Between A No ChexSystems Banks Account And A Second Chance Bank Account?
No ChexSystems banks account aren’t concerned at all with your history in the ChexSystems report. Even though they may have access to your past, that doesn’t affect their decision. The Bank may use other methods such as EWS to check whether you owe them money or any involvement in the fraud.
Second chance Bank accounts, on the other hand, check the applicant’s history in the ChexSystems. They can also opt to Telecheck and EWS for thorough screening. These banks aim at giving people who have an already tainted financial credit another chance.
In both types, though, the chances of approval are very high. Consumers in both accounts will also enjoy almost all normal standard banking services.
Frequently Asked Questions (FAQ)
Can I live anywhere in the United States and apply for a no ChexSystems Bank account?
No. Your state of residence will highly influence your choice of no ChexSystems Bank accounts. Most of them, however, in this list are spread in all the fifty states. Before making your decision on which Bank to apply on, it’s good to consider their availability.
What information will I need for the application process?
Social security number is the major requirement. In some rare instances also; your tax I.D. number can be used. It is also good to be prepared to answer some oral questions to verify your identity.
Will Your no ChexSystems bank account be FDIC insured?
This will depend on the Bank of your choice. If you choose Banks such as Chime, BBVA, NFCU, GoBank, your money will be insured by the federal government up to $25,000.
What if I want to bank locally, so I have access to a branch office?
Most of the no ChexSystems banks are found across all the 50 states apart from a few. The best thing to do is looking for that Bank locally available in your state.
Recap
Having a checking account is one of the best financial management techniques. According to studies, people without checking accounts are more susceptible to misuse of their money. Much of it goes to unnecessary fees charged by check-cashing kiosks, payday loan providers, and prepaid card fees. This is why it is very crucial to have a checking account.
You shouldn’t let your past financial mistakes terrorize you or deter you from opening an account. Thanks to the insurgence of the digital banking industry. You have at your disposal more than enough options to choose from. If you realize that ChexSystems has already blacklisted you, just focus on finding good no ChexSystems banks.
This fact, however, doesn’t mean you become reckless when handling your banking records. Actually, it should give you more strength to protect them.
