13 Best Banks Who Don’t Use ChexSystems (September 2021)

13 Best Banks Who Don't Use ChexSystems

This is a list of the 13 banks who don’t use ChexSystems.

For those that have made financial mistakes with your bank and checking accounts in the past, it can be difficult to get a bank that will do business with you. The best way to move forward is to use a bank who doesn’t use ChexSystems that will show all of your bad banking history.

13 Best Bank That Don’t Use ChexSystems

Cit Bank - Banks Who Don't Use ChexSystems
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80% of banks in the United States use ChexSystems to see if consumers have any negative banking information such as overdraft fees, bounced checks or fraud related issues, there are some banks who don’t check this information when you apply. Here is our list of the best banks who don’t use ChexSystems:

1. Cit Bank

Cit Bank - Bad Credit Checking Account That Doesn't Use ChexSystems

Cit Bank is an online only bank that offers checking accounts, savings accounts and loan products. Cit Bank was founded in 2011 and is a top 50 U.S Bank. They do not have any physical locations or have any ATMs of their own but they do reimburse you $30 of ATM fees per month.

Pros

  • No monthly fees
  • Fully online bank
  • 0.40 APY (If requirements are met)

Cons

  • No physical locations
  • $100 minimum deposit to open an account

2. Chime

Chime Bank Account

Chime isn’t a bank but an online financial technology company that was creating to make banking services easy and affordable. Chime doesn’t do credit check in order to open an account and they don’t use ChexSystems making this one of the best options if you have bad credit or negative banking history.

Chime also doesn’t have any monthly service fee, no minimum payment, and no minimum balance. If you have experienced overdraft fees in the past (which ChexSystems reports) you will love Chime because they allow you a fee-free overdraft up to $200 when you have over a $200 direct deposit a month.

3. Axos

Axos Bank - Banks who don't use ChexSystems

Axos bank is an online bank that offers different kinds of checking and high-interest saving accounts, auto loans and mortgages. Axos doesn’t have any physical locations outside of California but they do offer unlimited ATM fee reimbursements.

Axos has no monthly fees, no overdraft fees, no opening deposit requirement, no minimum balance, free checks and they do not check your credit or use ChexSystems. They also will give you a $20 referral bonus when you invite friends to open an account.

4. Current

Current - Best Checking Account For Bad Credit

Current is similar to Chime and is not a bank but an online and mobile banking technology company. Current does not do a credit check or use ChexSystems and they have no minimum balance, no hidden fees, no overdraft fees, no bank transfer fees, you can earn points to get cash back rewards for using your debit card and has options for teen and student checking.

Current is our pick for the best free checking account no credit check no deposit.

5. Navy Federal Credit Union

Navy Federal Credit Union - Banks Who Don't Use ChexSystems

Navy Federal Credit Union is one of the biggest credit unions in the country serving more than 8 million members. In order to join Navy Federal Credit Union you must be active-duty or reserve military, a military veteran, a Department of Defense employee or contractor, or have a family member who meets the membership criteria. They have 350 physical branch locations and over 30,000 ATMs without paying a fee.

As a member, you get free checking with no monthly fees. There is an overdraft fee of $29 but if you have a Navy Federal Savings Account linked to your checking you won’t be charged any overdraft fees if you have enough in your savings to cover any withdrawals.

6. First American Bank

First American Bank - Banks Who Don't Use ChexSystems

First American Bank has branches in Illinois, Florida and Wisconsin but it also offers online banking in all 50 states. Their Fresh Start Checking Account has a $50 minimum to open an account, a monthly fee for $9.95 but account holders get unlimited checks and there is no minimum balance required.

7. Wells Fargo

Wells Fargo Clear Access Banking Account doesn’t require a credit check or use ChexSystems so anyone who has bad credit or a negative banking history can sign up for this bank account. They provide overdraft protection for free and has over 5,400 physical locations nationwide.

8. SunTrust Bank

SunTrust Bank - Banks Who Don't Use ChexSystems

SunTrust Bank offers Essential Checking that does not use ChexSystems. There is a $7 maintenance fee but it can be waived if you make 10 or more client-initiated transaction per month, or make $500 or more in Direct Deposits per month or keep a $500 minimum daily collected balance or open as a student and receive a 5 year student waiver.

9. TD Bank

TD Checking Account- Best Banks Who Don't Use ChexSystems

TD Bank Simple Checking has a $5.99 monthly maintenance fee but does not have a minimum balance or deposit and no ATM fees if you use TD ATMs. They do not run your credit or use ChexSystems making this a great checking account if you have bad credit.

10. SoFi

SoFi - Banks who don't use ChexSystems

SoFi is a cash management account that helps you earn interest, has no ATM fees, overdraft protection and early direct deposit. They are offering a $100 welcome bonus when you setup direct deposit. SoFi has over 55,000 ATM locations.

There is no minimum balance fees, and no monthly fees. They are FDIC insured and you can earn up to 15% cash back on everyday expenses when you pay with SoFi Money. No credit check is needed to open an account and they do no use ChexSystems.

11. Acorns Spending Account

Acorns Spending Account - Banks Who Don't Use ChexSystems

Acorns Spending Account is an app that offers personal checking, investment and retirements accounts. Their banking is 100% digital allowing you to do everything right from one app. They offer no hidden fees with over 55,000 fee-free ATMs around the world. They give you an option to instantly invest your spare change.

Acorns Spending Account offers three plans a lite ($1 per month), Personal ($3 per month), and Family ($5 per month). They do not check your credit or use ChexSystems and encourage you to mico-invest. They have investors such as Ashton Kutcher, Dwayne Johnson, Jennifer Lopez and Kevin Durant.

12. US Bank

US Bank - Best Banks Who Don't Use ChexSystems

US Bank offers an Easy Checking Account for people who have a less than perfect banking history. The monthly fee is $6.95 but if you maintain a minimum balance of $1,500 or setup direct deposits of at least $1,000 you can waive the fee. US Bank will also waive fees for account holders 65 years old and older.

13. First Convenience Bank

First Convenience Bank - Best Banks Who Don't Use ChexSystems

First Convenience Bank is apart of the First National Bank Texas. They do not use ChexSystems for any of their checking accounts so you can sign up for whichever bank account fits your needs the best.

Power Checking is their most popular checking account has a monthly maintenance fee of $12 but it can be waived if you are 55 and older or maintain a balance of $100 or more each day, have a monthly recurring direct deposit of $100, or complete at least eight debit card purchases a month. It does have a $34 overdraft fee and NSF fee so if you have had an issue with that in the past there are other accounts that don’t charge fees.

They also have Checking With Interest, President Select High Yield Checking, EA Checking and Power Stash Checking.

What Is ChexSystems?

ChexSystems is a company that provides financial institutions with information about checkered bank accounts. It is similar to the credit bureaus that report your credit history instead ChexSystems reports your banking history.

When you apply for a new bank account, most banks will want to know if you are trustworthy and can handle the new account responsibly. The bank will ask ChexSystems to share any of your banking records that includes bounced checks, overdrafts, or any other negative banking information.

If you have an account in good standing, then your bank will not be so concerned and they can easily approve the loan or application. However, if there are any red flags or poor records from ChexSystems of previous banks where you have had ChexSystems, then your bank will be much more hesitant to continue with the process.

ChexSystems is a checkered history for banks to consider. ChexSystems has been around since the 1970’s when it started as an actual check processing system. It was initially used by merchants (such as grocery stores) who processed checks from their customers in order to vet check writers – preventing fraud and theft.

When you are in the ChexSystems database, it will analyze all your information shared by their network of banks and credit unions to generate a risk score that they will share for each account holder.

About 80 percent of banks use ChexSystems, so if you have any bad history it can make finding a bank difficult. Other banks use EWS that reports any negative items from your banking history such as check kiting, fraud and forgery.

The ChexSystems database is a repository of information on people who have had their bank account closed due to reasons such as overdraft, abuse, or fraud.

If your check has been rejected for having too many bounced checks in the past – even if it was not processed by ChexSystems – you may find that you will not be able to open a ChexSystems checking account or get approved for ChexSystems loans.

Related: The Best Student Checking Accounts

How Can I Find Out If I’m In ChexSystems?

You can a free copy of your ChexSystem report once every 12 months (just like your credit report) in four ways:

Visit their website

You fill out a “Request for Disclosure” link on the ChexSystems Website here.

Call

You can call ChexSystems by phone at 800-428-9623. The Interactive Voice Response is available 24 hours a day but their representatives are available Monday through Friday 8:00am to 7:00pm Central Standard Time.

Fax

Complete and Print the Consumer Request For Disclosure Form and Fax to 602-659-2197

Mail

Complete and Print the Consumer Request For Disclosure Form on their website and mail to:

Chex Systems, Inc.

Attn: Consumer Relations

7805 Hudson Road, Suite 100

Woodbury, MN 55125

ChexSystems Score Range

ChexSystems consumer score ranges from 100 to 899. The higher your score the less risk you are and you have the best chances of getting your bank account application approved.

Your ChexSystem Score is based on the following information:

  • ChexSystems Consumer Report
  • ChexSystems DebitBureau Data from banks and retailers
  • Employment History
  • Payday Loan History
  • LexisNexis Public Records Data (Residential History, Criminal History and Bankruptcy Filings)
  • Consumer Credit Report From Major Credit Bureaus (Equifax, Experian, and TransUnion)

These scores are assigned to each consumer based on their estimated likelihood on if their account will be closed by the bank within one year. How these scores are evaluated will vary depending on the bank. There is no good or bad score to determine if a bank will work with you. Instead, ChexSystems uses “cutoff” segments and banks can choose if they are willing to risk working with you or not.

Each bank has their specific segments and score they use to evaluate their customers. For example, an applicant that has a ChexSystems score of 545 or higher might be approved by the bank, while anyone that has a score under 545 might be rejected based on that cutoff score.

Here is a chart of cutoff scores:

RISK LEVEL CUTOFF SCORE

Averse 580

Moderate 545

Aggressive 525

How Long are You In ChexSystems?

If ChexSystem records of your account shows any negative balances, then it will remain in ChexSystems for five years. You can try to dispute items from your ChexSystems report in an attempt to clean up your banking history.

Related: What Are The 5 Best Business Checking Accounts

How Do I Clear My ChexSystems?

Once you have received your ChexSystem Report and find any errors or inaccurate information, gather any supporting documents (such as bank statements or payment records) and go to the “Dispute Information Section” on the ChexSystem website.

On their website they have a tutorial on how to submit a dispute to make it easy for you. Once you are ready click the “Submit Your Dispute Now” link to submit your dispute.

When you are ready to file your dispute you will need to include:

  • Full name
  • Social Security Number
  • Current Address and Mailing Address
  • Consumer ID Number (if available)
  • Identify the information being disputed and provide the specific nature of your dispute
  • Include any proof you have that shows the error or inaccurate information

Do not send any original documents. Always make a copy of the document to send in. If you are submitting a dispute on behalf of someone else or a minor, the dispute must be sent by fax or mail.

If any wrong or incomplete information is found they must correct the information by federal law. If you are not satisfied with the results you can add a statement to your report explaining the issue.

If you owe any money, you should pay it. If you can’t pay what you owe at one time contact the bank that you owe and see if they are willing to work with you to pay the debt off. Some banks will work out payments plans and others might lower the debt you owe if you pay it off at once.

Once the debt is paid ask the bank to update your file with ChexSystems so you can have the negative item removed from your banking history. Make sure to keep records of all transactions and receipts so you have proof that everything is paid in full.

Related: How To Deal With Creditors When You Can’t Pay: How To Get Out Of Debt

Methods To Dispute Your ChexSystems Report

You can submit your dispute three ways. Pick the method that is best for you and make sure you keep records of all everything you send.

-Online

You can easily file a dispute online from the ChexSystems Website here.

-Fax

Fill out and print the Request For Investigation Form on the ChexSystems Website and fax to 602-659-2197

-Mail

Fill out and print the Request For Investigation Form on the ChexSystems website and mail to:

Chex Systems, Inc.

Attn: Consumer Relations

7805 Hudson Road, Suite 100

Woodbury, MN 55125

Related: How To Dispute Your Credit Report Information

How Long Does A ChexSystems Dispute Take?

Once you submit your dispute with ChexSystems it takes about 30 days to complete an investigation (21 days for Maine residents).

If you send any documentation while the investigation is pending, it might take up to 15 additional days for them to review your case.

When you investigation is complete ChexSystems will notify you of the results by mail to the address you provided.

Related: How To Use Dispute Letters To Increase Your Credit Score

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Does ChexSystems Show Up On A Background Check?

If you have any records in ChexSystems, it might show up on background checks depending on what you are applying for. If you are applying for a job chances are it won’t show up on a basic background check. If you are applying to work for a bank they might pull your ChexSystems report before they hire you.

For a basic background check, ChexSystems records will not be shown in a credit report, but it could affect the chances of being approved for new accounts with other banks if you have ChexSystem history due to outstanding balances or closed account because of overdraft fees.

Most institutions will only run a basic background check so you shouldn’t have any issues with your ChexSystems report showing up. However, some places do run extensive and more elaborate background checks that might include your ChexSystems report and it could negatively impact your chances for employment, renting an apartment or getting a loan.

If you have any items on your ChexSystems report that you are worried about you should try to clear it up and pay off any debts that are owed or dispute anything that is inaccurate.

It’s always best to be honest and straightforward about any negative items that could affect you getting a job, apartment or loans both on your credit report and ChexSystems report.

Related: How To Get An Apartment With Bad Credit

Does ChexSystems Impact Your Credit Score?

ChexSystem records, which show up as inquiries on a report of all the checks you have written against your bank account for various reasons such as over-drafting or insufficient funds, will not be reflected in your credit score.

However, banks may use ChexSystems when reviewing your application for a new account to see if you have ChexSystem history, such as outstanding balances or closed accounts because of overdraft fees. This will not be reflected in your score but it could affect the chances of being approved for an account with that bank.

Related: Best Loans For Bad Credit

Benefits Of Banks Who Don’t Use ChexSystems:

– ChexSystems records won’t show up on your credit report

– Banks that don’t use ChexSystems often offer better rates on loans, higher limits on checking accounts, and more lenient restrictions for opening new bank accounts.

– Banks that don’t use ChexSystems are also more likely to be generous with credit, allowing people who have ChexSystems items a chance to get approved for loans or checking accounts without those negative records affecting their ability to do so.

Conclusion

If you have been turned down by a bank due to a negative ChexSystems report you can try and dispute any inaccurate information, pay off the debts you owe, wait for the negative items to fall off your report or get a second chance bank account that is for bad credit.

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