Banks That Don’t Use ChexSystems | 2022

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If you are blacklisted by ChexSystems, then you will be effectively blocked from opening bank accounts at 80% of the banks in the United States. However, this doesn’t mean you’ll be unable to bank anywhere. Your first option is to go with a bank or credit union that doesn’t use ChexSystems. These are financial institutions that don’t reference ChexSystems at all when making decisions about new customers. If you’re ready to put your past beyond you, check out these “Non-ChexSystems Banks”.

Top 5 Banks That Don’t Use ChexSystems [2022 Edition]

Fresh Start Checking Account
if you have negative history with ChexSystems
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axosbank.com
On AXOS BANK’S Secure Website
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quontic.com
On QUONTIC’s Secure Website
eChecking
$0 Monthly Maintenance Fees
$100 Opening Deposit
NO ATM Fees
Free Visa Debit Card
cit.com
On CIT BANK’S Secure Website
Mobile Banking App
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NO Minimum Balance
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chime.com
On CHIME’S Secure Website
Features and Benefits
Zero monthly service fees
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bankwithunited.com
On UNITED BANK’S Secure Website
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Free Visa® Debit Card
Free withdrawals at US Bank ATMs
Mobile check deposit is available
usbank.com
On US BANK’S Secure Website

In a Nutshell

When it comes to banking, you may not be aware that your accounts are always being watched. One of the companies responsible for reporting irregularities into your banking institution is an entity known as ChexSystems. If you’re you are not familiar with ChexSystems, then this article will show you everything that you need to know. This information can go a long way to help you clear up any potential issues with your checking and savings accounts.

What is ChexSystems?

Chexsystems official website

ChexSystems is a nationwide consumer reporting agency where banks contribute information to closed checking and savings accounts. About 80% of all banks use ChexSystems services to screen applicants for checking and savings accounts. During the screening process, a bank will have access to checking and savings history going back over the last five years.

How do I find out if I am on ChexSystems?

You can get a free report (also known as the “Consumer Disclosure”) each year from ChexSystems. You can request your free report at the official ChexSystems website.

Risk Score & Consumer Disclosure Report

Your ChexSystems report will give you a score between 100 to 899. The higher the score, the less of a risk you are to a bank. A bank can refuse to open an account if there are one or more negative pieces of information reported by ChexSystems. Because of this, ChexSystems does provide a free report each year upon request. This report allows consumers to dispute any information found on it.

How long do you stay on ChexSystems?

Negative reporting information will stay on ChexSystems for five years. After that period, the information will be removed, but it can be removed earlier with a successful dispute of the information.

Fresh Start Checking account is an excellent option for online checking and does not require a ChexSystems review.
By Kelly Scott
Updated: Dec 14, 2022

What are your options if you are blacklisted by ChexSystems?

There are a couple of steps that you can take to get out of ChexSystems.

Step #1: Regional Banks & Credit Unions by State

While 80% of the financial institutions in the United States use ChexSystems, there are a number of local banks and credit unions near you that you can consider. Find options by clicking below.

Step #2: Open a Second Chance Account

Features and Benefits
$25 opening deposit
If you have negative history with ChexSystems
55,000 fee free ATMs-Allpoint Network
Signing up takes 2 minutes!
Get Started
At MHP’S Secure Website
Our Top Choice

A second chance account is an account that doesn’t use the ChexSystems. Some of the positives of a second chance account are that you usually don’t need to maintain a high balance and you may not have to pay any fees. A second chance account is designed to help you build a positive history with ChexSystems. After several years of responsible banking with a second chance account, you may be able to open another account with a bank that uses the ChexSystems service. Here are some banks that offer second chance accounts:

  • BBVA Compass
  • TD Ameritrade
  • Capital One 360
  • Radius Bank
  • MemoryBank

Customers who open a Second Chance Account can earn other banking benefits with time. As long as you keep your account in good standing, you may be allowed more banking rights, and in the end, your account might be converted to a regular account.

Step #3: Other Banking Options

If you can’t open an account or if you don’t want to have a traditional bank account, then you can consider some alternative options. These options can allow you to save cash and accept direct deposits onto an account.

Paypal – The world’s largest online payment provider allows you to transfer money online. In addition, PayPal offers a number of different debit cards with low fees.

Walmart Debit Card – If you shop often at Walmart, then you may want to consider a Walmart Debit Card. One of the big advantages of having a Walmart Debit Card is that you can load or withdraw money at Walmart’s Money services center.

Amscot Debit Card – If there is an Amscot location near your home, then an Amscot card may be ideal for you. Amscot is a financial services center known for their payday lending services. With an Amscort Debit Card, you can load money onto your card at any Amscot location orATM machine as well as withdraw funds.

Be sure to check the terms and the fees of any debit card before you apply.

Ways you can get reported on ChexSystems

There are several ways you might get reported on ChexSystems, including the following common actions:

  • You bounce several checks within a short period of time;
  • The system detects false information associated with your account;
  • You have an overdraft;
  • Non-sufficient funds;
  • The system detects abuse of your debit card or savings account;
  • Any incident that could be described as fraud;
  • Your actions are found to be in violation of bank rules or regulations.

Does ChexSystems go on your credit report?

Information from ChexSystems does not directly go on your credit report. However, if you do have negative information on your ChexSystems, this could limit your ability to open an account at certain banks. Over the long term, being unable to open a bank account could lead to negative marks on your credit report.

While you are likely to monitor your credit report, you should do the same with your ChexSystems report. Checking each report at least once a year will allow you to identify and possibly dispute the information if need be.

How to clean up a ChexSystems report?

If you find negative information on your ChexSystems report, you’ll want to take some steps in order to remove that information.

Request your report

The first step is to request your report. You can request your ChexSystems report for free (once per year) by visiting the ChexSystems website. You can also write to ChexSystems. Mail your request to the following address:
ChexSystems Attention: Customer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125

Dispute errors

If you find any information that may be in error, then you will be able to file a dispute, which you can do with ChexSystems. After you have filed the dispute, the bank that reported the information has 30 days to validate the information. If the bank fails to provide proof, then the information will be removed from your ChexSystems report.

Pay off debts

If your ChexSystems report a debt to a bank, then you can potentially remove that information by simply paying off the debt. For instance, if you have a closed bank account with a debt of $200, then simply pay off the $200 and request to have the negative information removed from your ChexSystems report.

Ask creditors to remove information

You can also request that the creditor remove the information. There may be situations where the creditor will allow you to settle any debts that you owe. Also, you can make arrangements to pay off your debt in installments. It doesn’t hurt to ask a creditor for a way to resolve this information.

Wait until the record drops off the database

If none of the above strategies work, then you can wait until the information drops off from your ChexSystems report. As stated before, the information will be dropped from your report exactly five years from the day that the information is reported. During that five-year period, you will likely be restricted from opening accounts with banks that use the ChexSystems database.

How to make better financial choices?

While common sense budgeting can keep you from ending up on the ChexSystems, the following strategies can also help:

Set up a low balance alert

Just about all banks have a service known as a “low balance alert.” With this alert service, you will receive either a text or an e-mail notification if your account reaches a certain amount. When you receive your low balance alert, you should refrain from using the account until you can add funds to it.

Make a budget

One of the easiest ways to keep yourself out of financial trouble is to create a budget. Creating a budget allows you to evaluate your income and manage your spending. Over time, making a budget will provide you excellent protection from bouncing checks or becoming overdrawn on your account.

Cut your spending

No matter how much money you make, you won’t be able to stay out of trouble if you spend more money than you make. Therefore, you will want to cut any unnecessary spending. Be sure to check for any recurring charges on your account that you don’t need. Also, look for alternatives that can help you save money. For instance, buying items in bulk is usually more affordable during shopping trips.

Be careful with credit card spending

Your credit card should not be a substitute for regular spending. If you have trouble controlling your credit card spending, then be sure to only use it in the case of emergencies. If you need to, remove your credit card from shopping sites to lower your chances of impulse spending.

Opt for a secured credit card

You can get a secured credit card with just about any credit score. A secured credit card limits your spending the amount of collateral that you give to the credit card issuer. Over time, paying off your secured credit card on time will help improve your overall credit score.

What if you are a victim of identity theft?

If you are a victim of identity theft, then there is a possibility that someone could use your identity to open a bank account. With a bank account open in your name, a person can take out loans or write checks in your name.

To prevent anyone from opening a bank account in your name, you can place a freeze on your ChexSystems account. This freeze will alert any bank or financial institution that there should be no account opened in your name. This means that you can’t open a bank account while the freeze is active.

When you want to open a bank account, you can temporarily “unfreeze” or “thaw” your account from ChexSystems. After opening the account, you can return the “freeze” to your ChexSystems account once more.

Consumer Reporting Agencies like ChexSystems

In addition to ChexSystems, there are two other services used by financial institutions known as TeleCheck and Early Warning.

Early Warning Services

EWS provides what is known as a Deposit Score. This Deposit Score is compiled by the consumer’s banking history. Early Warning Services is designed to detect possible fraudulent activity. Co-owned by Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank and Wells Fargo.

TeleCheck

TeleCheck helps financial institutions decide whether they should accept a check from a consumer. Telecheck is currently used by over 374,000 merchant locations. The TeleCheck System works by looking at previous consumer transactions to check for bounced checks or other risky activity.

What to do before you open a bank account?

Want to make sure that your background looks its best before you attempt to open an account at a bank that uses ChexSystems? Here are some top tips that you should follow:

Get your ChexSystems report

Remember, you can get one free ChexSystem report per year. Be sure to get a copy and dispute any problems that you see on your report. You can resolve these problems by either filing a dispute or by requesting the creditor to remove the negative item.

Get your credit report

In addition to getting a free copy of your ChexSystems report, you should also get a free copy of your credit report.

Make sure you have funds to open an account

When you open a bank account, you want to make sure that you have the funds ready to cover any checks you may want to write or any debit card purchases. The last thing you want to do is open a bank account and immediately start getting hit with overdraft charges.

Compare banks

You want to make sure that you pick the bank that is right for you. In some cases, the bank that you pick may use ChexSystems. In other cases, a non-ChexSystems bank will be ideal for you. Consider the bank’s online services, the physical locations, and the bank fees. Remember, you will probably use that bank for a long time.

Keeping your account safe from ChexSystems report

Once you have opened your bank account, you will want to make sure that you don’t end up with any negative remarks on your ChexSystems report. One of the best ways to keep your checking and savings account in good standing is to always make sure that both accounts are well funded. Also, be aware of any recurring charges that may debit money from your checking account. Finally, make sure that you check the balance of your savings and checking account often.

*IMPORTANT* Some banks will allow you to have a backup payment system for your checking account. This will help you reduce your chances of bouncing a check and getting hit with returned check fees. You can use a credit card as a backup for your checking account. Just be sure that your credit card has a high enough limit to handle any possible overdrafts from your checking account.

Knowing the basic of ChexSystems

ChexSystems is an important reporting agency that can greatly affect your ability to open a bank account. If you suspect that you may have any negative information on your report, contact ChexSystems and request a free copy of your report. Be sure to dispute any information found, and if you can’t resolve any negative information on your Chexsystem report, be sure to consider non-ChexSystems banks and credit unions today.

You Should Be Patient

One last thing to point out to people trying to find a bank to work with them is to be selective. It may be tempting to go from one place to another trying to find a bank that would be willing to allow people to open an account, but it can be a big mistake. Make sure that the bank you have engaged works with people who have been reported before it pulls your ChexSystems record. Pulling data again and again from the ChexSystems database can further worsen your situation, as every time the data is pulled it shows up as an inquiry into your account. Many banks do not work with people that have multiple inquiries conducted.

If you have been reported to Chexsystems, you need to be very proactive. Take time to get in touch with the bank to dispute the record today and start fixing the problem now. It is very difficult to survive without being able to use typical banking services that many people take for granted. You might be able to manage with only a savings account for a short time, but your banking fees will increase gradually to an extent that it becomes unaffordable. The faster you can fix the negative marks on your report, the sooner you will be able to open a new account.

Frequently Asked Questions

  • It is still possible to get a bank account while having your name present on ChexSystems. Again, it depends on your bank or credit union. If they use the Chexsystems database to investigate the applicant and their policy doesn’t allow them to have listed individuals as their customers, you won’t be allowed to open a checking account.
  • In cases of a minor breach, an individual is sometimes allowed to write checks, at a bank’s discretion. However, if you have also been reported to Shared Check Authorization Network (SCAN), which is owned by ChexSystems, you will have difficulty writing checks.
  • The short answer is no. ChexSystems works like any other credit bureaus and will report the incident even when you have paid for the damage. Only the reporting bank can ask ChexSystems to remove an entry before the five-year period has passed.

If All Else Fails

If you want to be proactive and get your negative information removed from Chexsystems altogether, then be sure to read our free guide to getting out of Chexsystems for good.

Rooting for ya,
Kelly Scott

Comments? Questions?

You can also ask your own questions, please contact us using the form here.

  • Eileen Ortiz
    Pennsylvania
    4/9/2022
    I was a victim of fraud. I called ChexSystems to have this information removed from my account. I talked to someone named Lionel. Well, Lionel told me that I have to jump through a bunch of hoops like I am the Guilty Person! ChexSystems is the worst. They are punishing victims of fraud. They need to be reported.
  • Carter Bishop
    North Carolina
    4/6/2022
    I recently had a bank deny me a loan and I asked why. They mentioned ChexSystems (which I never heard of before). I requested information from ChexSystems and found a load of fiction under my name. I am trying to get this information removed. However, it is taking longer than I expect.
  • Francisco Byrd
    New York
    4/1/2022
    I found out about ChexSystems the hard way. I applied to open a bank account at BofA and was denied because of abuse of my bank account. I have no idea what ChexSystems is talking about. I requested a copy of my ChexSystems report and have yet to receive it. It’s been over three weeks and I need this matter resolved right away.
  • Billy Nelson
    Indiana
    3/26/2021
    I recently had my bank account closed due to fraudulent activity. Now, ChexSystems is pinning the fraudulent activity on me! That means that I am unable to open a bank account at most places near me. I don’t even know how to get started straightening this out. ChexSystem needs to get their act together.
  • Jordan Lee
    California
    3/18/2022
    This company needs to take a course on proper customer service. I requested a hard copy of my ChexSystems report. The company claimed that the report will be mailed to be in 5 business days. Well, 15 business days have passed and I have yet to receive my report. What’s worse? I can’t get a hold of any live operator. This company needs to be reported.
  • Andrew May
    Texas
    3/6/2021
    The ChexSystems database sent a report to my bank about a rejected application for a CD. Naturally, this is wreaking havoc on my ability to deal with my bank. Now, I have to go find another bank. I don’t understand how one company can have so much power over my financial life. ChexSystems needs to go!!!
  • Marlene Hicks
    Alabama
    2/18/2021
    This is a horrible company, I have been waiting for weeks on a pin to lift a security freeze. Each time I call to ask how much longer, I get sent to another department and I can’t get a straight answer. I am trying to apply for a loan and I can’t get moving without the pin. This company doesn’t seem to have any idea what the term customer service means.
  • Wilma Flores
    Iowa
    1/14/2021
    I placed a freeze on my report then requested that freeze be lifted online. The problem is that the company doesn’t not recognize my pin. Now, I have been on the line with their “so called” customer service team for a total of 50 minutes and I am unable to get any headway. This is the most frustrating experience I have ever had with any company.
  • Cecil Kim
    Delaware
    11/23/2020
    I have been rejected for an account by several banks because of ChexSystems. So, I called the company and asked for a copy of my own report. It has now been four weeks and I have not been able to see a copy of my own report. I’m going to have to find a bank that doesn’t use this stupid ChexSystems crap.