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31 Best Free Banks Who Don’t Use ChexSystems-Guaranteed Approval (2021)

13 Best Banks Who Don't Use ChexSystems

This is a list of the 31 best free 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.

Cit Bank - Banks Who Don't Use ChexSystems
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31 Best Bank That Don’t Use ChexSystems

Inside This Article

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.

Most of the checking accounts listed below are free or offer ways you can waive the monthly fee. Other accounts on this list have very affordable fees making these accounts great to use for anyone..

Here is our list of the best banks who don’t use ChexSystems:

1. Cit Bank eChecking Account

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
  • No ATM fees for Cit Bank
  • Get $30 ATM fee reimbursements from other banks per month
  • Fully online bank with 24/7 account access
  • Transfer, pay and purchase with Zelle
  • 0.25% APY or 0.10% APY (If requirements are met)
  • Set travel alerts or stop use on your debit card

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.

Pros

  • No monthly fees
  • Fee Free overdraft
  • Get paid up to 2 days early with direct deposit
  • 60,000 fee free ATMs
  • Optional savings account earns 0.50% APY
  • Access to Chime Credit Builder Card to help you build your credit

Cons

  • No physical bank locations

3. Axos Essential Checking

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.

Pros

  • No monthly maintenance fees
  • No minimum monthly balance requirements
  • No overdraft or non-sufficient funds fees
  • Unlimited domestic ATM reimbursement
  • Get paid up to 2 days early with direct deposit
  • Earn $20 when you refer a friend
  • Automate your bills with Bill Pay
  • Exclusive Visa offers and perks

Cons

  • No physical locations outside of California

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.

Pros

  • No monthly maintenance fees
  • No minimum balance fees
  • No overdraft fees
  • No bank transfer fees
  • No in-network ATM withdrawal fees
  • Get paid 2 days earlier with direct deposit
  • Earn up to 15x points every time you use your Current debit card at over 14,000 participating merchants nationwide
  • Teen banking option

Cons

  • No physical branch locations
  • $500 maximum daily ATM withdrawals
  • $2,000 maximum amount for purchases per day (also the maximum to deposit a check)
  • $5,000 is the maximum transaction amount for peer-to-peer payments through Current Pay

5. Navy Federal Credit Union Free Everyday Checking

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.

Pros

  • No monthly service fee
  • No opening deposit requirement
  • No minimum balance requirement
  • 0.01% APY
  • 0.01% dividend rate
  • Digital banking with Bill Pay and mobile deposits
  • Transfer money with Zelle
  • Pay bills automatically

Cons

  • Account memberships are for Active Duty Military members, DoD Officer Candidate, DoD Reservists, Delayed Entry Program (DEP), Veterans, Retirees and annuitants.
  • $29 non-sufficient funds fee

6. First American Bank Fresh Start Checking

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.

Pros

  • No minimum balance requirement
  • Unlimited check writing
  • Free online and mobile banking
  • Access to over 55,000 surcharge-free ATMs

Cons

  • $9.95 monthly fee
  • $50 minimum to open

7. Wells Fargo Clear Access Checking Account

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.

Pros

  • No overdraft or non-sufficient funds fees
  • 24/7 customer service
  • 12,000 ATMs nationwide
  • Budgeting, cash flow and spending tools
  • Send and receive money with Zelle
  • Pay bills and deposit checks with the Wells Fargo App
  • Zero Liability Protection

Cons

  • $25 deposit minimum to open
  • $5 monthly service fee (fee waived for account owners 13-24 years old)

8. SunTrust Bank Essential Checking

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.

Pros

  • Mobile banking and mobile deposit
  • $7 monthly maintenance fee (can be waived if you 10 or more initiated transactions per statement cycle, make $500 or more in direct deposits per statement cycle, keep a $500 minimum daily balance, or open as a student and receive a 5 year student waiver)
  • 10 custom checks starter pack
  • Zero Liability Protection
  • Zelle payments
  • No-fee access to over 2,000 SunTrust ATMs and 1,200 branches
  • Go paperless to avoid the $3 monthly paper fee

Cons

  • $7 monthly maintenance fee if you are unable to waive it

9. TD Bank Essential Checking

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.

Pros

  • No minimum daily balance
  • No overdraft fees
  • 24/7 access with mobile banking
  • No monthly maintenance fee if you are 13-17 years old
  • Online Bill Pay
  • 1,100 branch locations
  • Free online statements
  • Send and receive money with Zelle

Cons

  • $4.95 monthly maintenance fee
  • $1 monthly fee for paper statements

10. SoFi Cash Management Account

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.

Pros

  • No monthly maintenance fees
  • No overdraft fees
  • No minimum balance fees
  • Over 55,000 fee-free ATMs worldwide
  • Earn 0.25% APY with qualifying direct deposits
  • Get paid up to 2 days early with direct deposit

Cons

  • No physical branches
  • $1,000 limit per day at ATM Withdrawals

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 micro-invest. They have investors such as Ashton Kutcher, Dwayne Johnson, Jennifer Lopez and Kevin Durant.

Pros

  • Get paid up to 2 days early with direct deposit
  • Automatically invest a piece of every paycheck with Smart Deposit
  • Over 55,000 fee-free ATMs
  • 10% bonus investments
  • FDIC Insured

Cons

  • No physical locations
  • $3 per month

12. US Bank Easy Checking

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.

Pros

  • No monthly maintenance fee if you have direct deposits of $1,000 or more, have an average account balance of $1,500 or you are 65 or older
  • No fees for Overdraft protection transfers
  • No ATM fees for in-network ATMs
  • Mobile banking and deposits
  • Send and receive money with Zelle

Cons

  • $6.95 monthly fee if you don’t qualify to waive the fee
  • $2 paper fee (unless you enroll in e-statements or you are 65 or older)
  • $25 minimum opening deposit

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.

14. Varo Bank Varo Checking

Varo Checking Account- No ChexSystems

Varo Bank was founded in 2015 as America’s First Digital Consumer Bank. It was the first consumer fintech to receive a national bank charter from the OCC. They offer cutting edge technology for their fully online bank so they can keep their costs low so consumers don’t have to pay as many fees as traditional banks.

Varo bank does not do a credit check for opening an account and does not use ChexSystems.

Pros

  • No monthly maintence fees
  • No minimum balance
  • 55,000 AllPoint ATMs
  • Deposit money by using Green Dot Reload at over 90,000 retail locations
  • Easily manage your money with the mobile app
  • Get paid 2 days early with direct deposit
  • Earn up to 15% cashback on select purchases

Cons

  • No physical branches

15. Douugh Banking Douugh Spend

Douugh Banking - Banks Who Don't Use ChexSystems

Douugh Banking was founded in 2016 with the goal of developing a new banking model centered around software that will help you achieve your financial goals.

Douugh uses an AI-first approach to help you spend wisely, save money and invest. This is one of the best checking account to help you automate your finances and organize your money. Douugh will not impact your credit score.

Pros

  • Free for the first 28 days
  • No minimum opening deposit
  • No overdraft fees
  • Automated money management
  • Savings and wealth jar
  • Detailed spend analytics
  • Checking account with Apple Pay
  • Virtual card to manage your bills
  • FDIC insured
  • Access to over 32,000 ATMs with MoneyPass network for fee-free withdrawals

Cons

  • After the first 28 days it is $4.99 per month
  • $2.50 out of network ATM fee

16. LendingClub Bank Rewards Checking

LendingClub Checking - Banks Who Don't Use ChexSystems

LendingClub was founded in 2007 with over 3 million members who have created have a full-spectrum fintech marketplace that offers a vaiety of financial products and services. LendingClub offers checking accounts, savings accounts, personal loans, business loans and more.

LendingClub does check your credit score but they do a soft inquiry so it won’t impact your credit like a hard inquiry will. If you have a credit freeze in place you will either need to unfreeze your account or they will have to manually review your application which may take longer to be approved.

Pros

  • Earn unlimited 1% cashback
  • No monthly maintenance fees
  • Earn 0.10% APY on balances of $2,500-$99,999.99 and earn 0.15% APY on balances of $100,000 and up
  • Get your paycheck up to 2 days early with direct deposit
  • Deposit checks and pay bills with the mobile app
  • FDIC Insured
  • Get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you.

Cons

  • $100 minimum deposit to open account
  • $25 non-sufficient funds charge

17. Peoples Cash Solutions Second Chance

Peoples Cash Solutions - Banks Who Don't Use ChexSystems

Peoples Cash Solutions and Peoples Bank offer a second chance checking account that is FDIC insured and is made for anyone who has bad credit or problems with ChexSystems.

Pros

  • No minimum balance requirements
  • Personal checkbook
  • Online Bill Pay and mobile banking
  • MasterCard debit card
  • FDIC Insured

Cons

  • $4.95 monthly fee

18. TCF Bank (Huntington National Bank) Asterisk Free Checking

Huntington Bank- Banks Who Don't Use ChexSystems

TCF Bank has partnered with Huntington National Bank where they offer personal checking and savings accounts, loans, mortgages, business checking and savings accounts, business loans and lines of credit and commercial loans and financing.

Huntington National Bank was founded in 1866 in Columbus, Ohio. On June 9, 2021 TCF National Bank joined forces with them. Huntington National Bank is located in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, South Dakota and West Virginia.

Pros

  • No monthly maintenance fee
  • No minimum deposit required
  • Free to open
  • Get paid up to 2 days early with Early Pay
  • Qualify for $100 to $1,000 line of credit with Standby Cash
  • 24 hour Grace feature to avoid an overdraft or return fee
  • Analyze your spending habits

Cons

  • Not available in all 50 states

19. FSNB (Fort Sill National Bank) Basic Checking

Fort Sill National Bank - Banks Who Don't Use ChexSystems

FSNB has been around for over 70 years and offers banking services for both military and civilian communities. They offer checking and savings accounts as wells as loans and Military Advanced Checking options. There is no credit check to open an account and does not use ChexSystems.

FSNB is available in North Carolina, Maryland,, Tennessee, Georgia, Mississippi, Louisiana, Arkansas, Texas and Oklahoma.

Pro

  • No credit check
  • Free basic online banking
  • No monthly or annual fees for Visa CheckCard
  • No transaction fee for FSNB ATMs
  • Interest accrues on entire amount with minimum balance of $500

Con

  • $5 to open account
  • $6 per statement cycle if balance is below $75
  • $3.50 for paper statements if you don’t sign up for e-statements
  • Not available in all 50 states

20. Renasant Bank Renasant Checking

Renasant Bank - Banks Who Don't Use ChexSystems

Renasant Bank was founded in 1904 in Mississippi. Since then they have grown to be the southeast’s strongest financial institutions. They currently have office in Mississippi, Alabama, Tennessee, Georgia and Florida.

Pros

  • No monthly maintenance fee if you have a daily account balance of $1,000
  • Unlimited check writing
  • Track your spending with Zelle, Apple Pay, Google Pay, and Apple Pay Cash.
  • Online banking and Bill Pay
  • Zero Liability Protection

Cons

  • Not available in all 50 states
  • $50 deposit to open
  • $10 monthly maintenance fee if you don’t have a daily account balance of $1,000.

21. Southwest Financial FCU Checkless Checking

Southwest Financial - Banks Who Don't Use ChexSystems

Southwest Financial is located in Texas and they offer checking and savings accounts, home and auto loans, and so much more. Southwest Financials checkless checking account doesn’t do a credit check or use ChexSystem making it an easy account to open if you have trouble qualifying for a checking account.

Pros

  • No monthly service fees
  • Overdraft protection
  • Courtesy Pay Available
  • Bill Pay
  • Estatements
  • Mobile app and online banking
  • Mobile check deposit

Cons

  • No checks available

22. Langley Federal Credit Union Essential Checking

Langley Federal Credit Union - Banks Who Don't Use ChexSystem

Langley is a member-owned non-profit credit union with location in Hampton, Newport News, Williamsburg, Chesapeake, Isle of Wight, Norfolk, Suffolk, and VA Beach. Langley offers checking accounts, savings accounts, personal loans, line of credit, student loans, student loans refinance, credit builder loans, mortgages, auto loans, credit cards, business loans, insurance, and investments.

Langley Federals essential checking account is perfect for anyone who has bad credit or no credit and does not use ChexSystems. 

Pros

  • $5 monthly maintenance fee reimbursement by using your Langley debit card or logging in to online banking once every month.
  • Online banking
  • Bill Payment
  • Mobile Banking
  • Get paid early with direct deposits
  • Over 55,000 ATMs

Cons

  • Not available in all 50 states
  • Need direct deposit to open an account
  • $20 minimum to open an account

23. United Bank Free Checking

United Bank - Banks Who Don't Use ChexSystems

United Bank has been around for then 180 years. United offers personal checking and savings accounts, investments, retirements, credit cards, home mortgages, auto loans, personal loans, business checking and savings and business credit cards. Locations available in South Carolina, North Carolina, West Virginia, Virginia, and Pennsylvania.

United Bank offers a free checking account and does not check your credit or use ChexSystems.

Pros

  • No minimum balance
  • Free online banking and Bill Pay
  • Mobile banking with check deposits
  • 200 fee-free ATMs
  • Send and receive money with Zelle
  • FDIC Insured

Cons

  • $50 minimum deposit to open
  • Fees for non-sufficient funds
  • Not available in all 50 states

24. Bancorp South My Way Checking

Bancorp South- Banks Who Don't Use ChexSystems

Bancorp South was founded over 144 years ago in Mississippi. Bancorp has grown into other states including Missouri, Arkansas, Florida, Texas, Louisiana, Alabama and Tennessee.

Bancorp South offers personal checking and savings accounts, credit cards, auto loans, mortgage loans, personal loans, retirement planning, investments, business checking and savings accounts, business loans, business credit cards, corporate spending, and equipment leasing.

Pros

  • Waive $5 monthly fee when you have $100 minimum daily balance or five debit card purchase transactions or at least one direct deposit of $100 or more or be a student enrolled in school
  • Online banking with bill pay
  • Set savings goals and budget
  • Free debit card
  • Unlimited check writing
  • Mobile wallet
  • 24/7 customer service
  • Overdraft available as an add on with a fee

Cons

  • $50 minimym deposit to open
  • $5 monthly service if you don’t qualify to get it waived

25. GoBank Online Checking

Go2Bank - Banks Who Don't Use ChexSystems

Go2Bank is a brand of Green Dot Bank that offers online banking to millions of customers. The reason this bank was founded was to serve people who don’t have checking or savings account. They don’t do a credit check or use ChexSystems.

Pro

  • Waive $8.95 monthly fee when you have a monthly deposit of $500
  • No hidden fees
  • Get paid up to 2 days early with direct deposit
  • Mobile check deposit
  • Large network of fee-free ATMs
  • Pay bills on the go
  • FDIC Insured

Con

  • $8.95 monthly fee if you fail to get it waived
  • $3 ATM fee for out of network ATMs

26. Regions Bank Now Checking

Regions Bank - Banks Who Don't Use ChexSystems

Regions Financial Corporation is a member of the S&P 500 index and is one fo the nations biggest full-service providers of consumer and commercial banking.

Regions Bank offers personal checking and savings accounts, debit and prepaid cards, credit cards, mortgages, loans and lines of credit.

Pros

  • No overdraft fees
  • Free online banking
  • Mobile banking
  • Unlimited check writing
  • Over 1,900 ATMs
  • Cashback rewards
  • Send and receive money with Zelle

Cons

  • $5 monthly fee
  • $10 minimum opening deposit
  • Not available in all 50 states

27. Axiom Bank AxiomGO Checking

Anxiom Bank - Banks Who Don't Use ChexSystems

Anxiom Bank is central Florida’s fastest growing community banks. Anxiom Banks AnxiomGO checking account is their cheapest checking account with a monthly fee that is easy to waive. There is no credit check and they don’t use ChexSystems.

Pros

  • Waive $5.99 monthly service fee when you establish a direct deposit into the account each statement cycle or one debit card transaction per statement cycle
  • No minimum balance
  • 55,000 fee-free ATMs with Axiom Bank, Allpoint Network
  • Online banking with bill pay
  • Mobile banking

Cons

  • $5.99 monthly service fee
  • $25 minimum opening deposit
  • Only has 12 branch locations

28. Woodforest National Bank Second Chance Checking

Woodforest National Bank - Banks Who Don't Use ChexSystems

Woodforest National Bank is a community bank offering the highest level of customer service as well as competitive products. The financial products they offer include personal checking and savings account, business checking and loans, personal loans, auto loans, lines of credit and mortgages.

Woodforest National Bank has several checking account options to choose from but two of the options are best for anyone who had banking issues. The cheapest account is the Woodforest Checking that has no monthly fee if you maintain a balance of $100 and monthly direct deposit. The second chance checking is perfect for anyone who has experience checking challenges.

Pros

  • Online banking
  • Bill Pay
  • estatements
  • Mobile deposits
  • Free VantageScore

Cons

  • $25 minimum to open
  • $9.95 monthly maintenance fee with monthly direct deposit, $11.95 without monthly direct deposit
  • $9 one-time account setup fee
  • $3 monthly paper statement fee

29. Florida Credit Union Value Checking

Florida Credit Union - Banks Who Don't Use ChexSystems

Florida Credit Union offers competitive financial products such as checking and savings account, CDs, youth accounts, business checking, business loans, business lines of credit and business credit cards.

Florida Credit Union does not use ChexSystems but they do run Telechick and a credit report to screen applicants.

Pros

  • No monthly fee
  • No minimum balance requirement
  • Free online banking tools
  • 8 ATM fee rebates per month
  • Free Visa debit card
  • Member-to-member transfer
  • NCUA Insured

Cons

  • Only available in Florida
  • They do a credit check

30. Credit Union One Basic Checking

Credit Union One - Banks Who Don't Use ChexSystems

Credit Union is a Michigan Credit Union that offers savings accounts, checking accounts, personal loans, auto loans, boat loans, home loans, secured loans, business loans and investing. The basic checking account is great for anyone who has had trouble opening a bank account or had financial troubles in the past. There is no credit check and they do not use ChexSystems.

Pros

  • Helps rebuild your banking history
  • No minimum balance
  • Free ID theft protection
  • 36,000 ATMs nationwide
  • Free online banking and mobile app for bill pay

Cons

  • $25 to open
  • $15 monthly maintenance fee; $10 when enrolled in Direct Deposit

31. San Diego County Credit Union Free Checking

San Diego County Credit Union - Banks Who Don't Use ChexSystems

San Diego County Credit Union is a local San Diego Credit Union offering all the big bank products without the big bank hassle. They have over 43 branches and competitive rates. The services they offer are credit cards, checking accounts, savings accounts, auto loans, home loans, and business banking.

Pros

  • No monthly fee with eStatements
  • Online banking
  • 30,000 fee-free ATMs
  • Pay bills online with Bill Payer

Cons

  • $25 minimum opening deposit
  • Not available outside of San Diego County, Riverside County and Orange County

What Is ChexSystems?

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.

When Was ChexSystems Founded?

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 Database?

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

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3 Benefits Of Banks Who Don’t Use ChexSystems

  1. ChexSystems records won’t show up on your credit report
  2. 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.
  3. 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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