Many customers out there are struggling with poor banking history that stops them from opening a checking account. Luckily, there are banks that don’t use Chexsystems and they are quite helpful in building good relationship with banking systems when you have not been responsible in the past.
Although there is nothing you can do to improve your credit score quickly and people prefer bad credit financing as an alternative, you can take the first step towards fixing this problem by opening an account in one of the non-Chexsystems bank.
How Do Banks That Don’t Use Chexsystems Work?
Before we begin to talk about how banks that don’t use Chexsystems work and how you can open an account there, there is a need to understand what Chexsystems actually is.
Basically, Chexsystems is a reporting agency that has the job of inquiring a customer’s credit history and building a report and a risk score. The agency looks into bounced checks, overdrafts, and other such negative items. The report that it then builds can be accessed by different banks when you apply for a checking account.
The score that you will be assigned is a bit different than credit scores. It ranges from 100 to 899 without any classification of good or bad range.
The only thing to remember is that a low score indicates that you have had a bad banking experience in this past and need to work on improving your credit standing with financial institutions.
A study has pointed out that more than 80% people in the US rely on non-Chexsystems bank because they can not open a checking account with their banking history.
Now lets have a look at the best 19 bank options that you can consider when you wish to open non-Chexsystems account.
Most reviewers have put BBVA as a top choice when it comes to opening an account in a bank that does not use Chexsystems. You just have to pay just $25 to open the account.
Moreover, accountholders can enjoy no-cap minimum balance requirement and there are no monthly charges. It offers debit card that lets you make purchases and also earn cash back rewards. To top it all up, BBVA has one of the best mobile app and online banking system.
The number of users relying on Chime is rapidly growing thanks to its widespread services all around the US. There is no initial deposit fee for opening an account here.
It is also free of any hidden bank service charges. The debit card is available for free as well. Moreover. it offers 38,000 fee-free MoneyPass and VISA Plus Alliance ATMs and every purchase you make with the Chime debit card will be rounded off to nearest dollar.
3. Wells Fargo
Although Wells Fargo charges fees that are higher as compared to other options, it is still one of the best non-Chexsystems bank that lets you open account easily and without extensive scrutiny. You have to pay $25 to open the account.
Wells Fargo charges $5 as monthly maintenance fee. Additionally, the mobile app lets you make direct deposits and money transfers You can apply for Wells Fargo debit card and obtain it for free. Lastly, there are no overdraft fees.
4. US Bank
US Bank is another trustworthy service in America that lets you open account with only minimum charges and no check into banking history. You have to pay $6.95 as monthly charges
The monthly charges can be easily avoided if you keep your account balance above $1,500. With 3000 branches nationwide, US Bank has high approval rate when it comes to customers with poor banking history. It offers a number of features that can help you improve your credit score over time.
5. First American Bank
Physical branches for First American Bank are limited to the regions of Illinois, Florida, and Wisconsin but its online services are available all around the US. Initial deposit of $50 is required to open an account here and the bank charges $9.95 monthly fee.
There is no minimum balance requirement. First American Bank customers are allowed to write unlimited checks. The Online banking services are available in all 50 American states.
6. First Convenience Bank
First Convenience Bank stands out from the rest with its minimum initial deposit requirement of just $20. Although it charges a monthly fee, there are terms and conditions through which this can be avoided. You just have to deposit $20 to open the account
The bank charges an annual fee but it can be avoided if you follow certain rules and regulations. Physical branches for First Convenience Bank are located in Texas, Arkansas, New Mexico, and Arizona. Besides that, it maintain a reliable online network throughout the US. It has high approval rates even for customers with poor banking history.
This bank provides an epic combination of low service charges and cash bonus rewards making it one of the best choices for people who are struggling to maintain good relationship with their bank.
You need to deposit $50 to open the account. There are no hidden bank charges. The process of opening an account here is pretty simple and straightforward. Furthermore, it comes with a mobile app that allows for easy transactions and money transfers. Lastly, you have the chance to win $50 cash bonus if you sign up with SoFi money feature
8. Navy Federal Credit Union
The Credit Union lets you choose between opening an Active Duty Checking account or Free eChecking account. You are allowed to make free bill payments and the mobile app is quite helpful with free mobile deposits as well
Navy Federal Credit Union is open to all the legal residents in the US. The dividends are credited every month and you don’t have to worry about your banking history
9. SunTrust Bank
SunTrust Bank is an amazing option if you wish to avoid monthly charges and making only a minimum deposit in the start. It requires a deposit of $100 to open the account. The monthly fees are waived off for students.
Monthly fees are also removed for customers who make more than 10 transactions in a month It is a perfect fit for people with poor banking history. Even if you have to pay the monthly charges, these are only $7.
10. Renasant Bank
This is another non-Chexsystems bank that provides extremely safe banking services to all its customers. Customers have to make $50 deposit in the start. The monthly charges are set at $8
Monthly fee is waived off for customers who keep account balance more than $500. Moreover, the Renasant Bank offers free Mastercard debit services to all its accountholders. You can make use of online banking and online bill payment as well.
11. United Bank
United Bank has its physical branches in Virginia, Ohio, North and South Carolina, DC, and West Virginia with online system established throughout the US. The are no hidden charges associated with account opening and use and the customers don’t need to worry about minimum balance requirement.
It provides amazing online services that are free of charges. You can make direct mobile check deposits. Lastly, the United Bank offers a free VISA Debit card to all accountholders.
12. People Cash Solutions
Although the bank does not offer mobile app, it is still a good option if you want to open an account in non-Chexsystems bank. Users need to deposit $30 in the start and monthly fee of $4.95 is required.
The bank offers free Mastercard debit card services. People Cash Solutions also come with free account statements each month and you can make use of free paper checks and online banking as well.
13. TD Bank
TD is an affordable banking service that comes with minimal fees and good customer support service. It has a monthly fee of $15 but monthly charges are waived off for customers with account balance greater than $100 .
TD Bank offers free debit card to all its accountholders. There is a 0.25% rate discount on TD personal loans. In fact, It is one of the most affordable checking account bank.
14. TCF Bank
Physical branches for TCF Bank are located in Indiana, Colorado, South Dakota, Wisconsin with online services available throughout the US. You have to make an initial deposit of $25.
It is quite easy to get approved for TCF Bank checking account. There is no minimum balance requirement and the TCF Bank is open for all the legal residents in the US. The customer support service is quite commendable.
15. Fort Sill National Bank
Military and civilian residents are treated equally at Fort Sill National Bank and allowed to open a checking account here without scrutiny of banking history. You just have to deposit $5 here to open the account
The monthly charges are set at $6 but these can be avoided if you keep the account balance above $75 and the bank charges $3.5 paper statements per cycle. It offers no-cost electronic statements. Fort Sill National Bank has one of the best customer support services.
16. Southwest Financial Federal Credit Union
It is a very helpful service for customers who can’t win approval in other banks. There is no minimum balance requirement. It comes with an impeccable mobile app that allows money deposit and transfers.
It has one of the highest approval rates and the Southwest offers good online banking. Nice customer support services are available as well.
GoBank is one of the services in America that offers widespread ATMs and other money management tools as well. The monthly charges are set at $8.95 but these can be avoided by keeping account balance above $500.
Their ATMs are widespread in the US. It offers free debit card for purchases and you can make mobile check deposits for free. The bank account is associated with a number of retailers for discount offers.
18. Varo Bank
Varo Bank lets you open a checking account without looking into Chexsystems report. There are no monthly charges. Online service is available 24/7 with quick money deposits.
There is no requirement for initial money deposit and there are more than 55,000 ATMs located around the US. To top it all up, their customer support service is up to the mark.
19. Acorns Spend Checking Account
The bank account here comes with negotiable terms but offers all the benefits of a typical checking account. There are no minimum monthly requirement and there are no overdraft charges.
The bank offers automated bill payment. You are allowed to make mobile check deposits as well and your account will be FDIC-insured.
Why Banks That Don’t Use Chexsystems Are Important?
There are many reliable banks and credit card issuers that let you open a checking account without looking into banking history and records. They provide online banking, allow you to write checks, and offer debit card access as well.
Here are some of the basic benefits that you can enjoy with non-Chexsystems bank once you become an account-holder there.
- Safe Spot For Your Funds: Checking accounts are a good spot to deposit money and withdraw it whenever needed. You can track your balance easily and make transactions from one account to another.
- FDIC-Insured: Non-Chexsystems banks are also FDIC-insured similar to banks that use Chexsystems records. Most of these institutes offer protection up to $250,000 that can refunded if an unfortunate event takes place.
- Minimum Service Charges: You don’t have to pay hefty amount of fees when operating a bank account. In fact, most of the services offered here are completely free of charges.
- $0 Fraud Liability and Protection: Your account and the linked debit card is secured by the bank. You will have the right to apply for a new card in case the previous one is stolen or lost.
What Are The Best Alternatives To Banks That Don’t Use Chexsystems?
Now you are equipped with full knowledge of what non-Chexsystems banks are and how they can be beneficial. However, if you decide that banks that don’t use Chexsystems are not the right choice for you, there are always other alternatives that you explore.
1. Second Chance Bank Account
These are the bank that do use Chexsystems but are willing to giving you a second chance even if your previous records are doubtful.
These are amazing options to improve your relationship with financial institutes. However, you have to keep in mind that they come with considerable monthly charges.
2. Prepaid Debit Cards
Prepaid debit cards let you deposit funds and then utilize them for purchases and other requirements. They function much like good credit cards in a sense that they help you manage money.
Moreover, getting approved for prepaid card does not require you to an outstanding banking history.
3. Secured Credit Cards
You can apply for secured credit cards and make an initial deposit to open the account. They function like any other credit card but are quite helpful in improving credit score if you continue to make monthly payments on time. I
t is even better if you get a preapproved mail offer. In this case you can apply and get approved for the credit quickly.
4. Foreign Bank Accounts
If you are having trouble getting bank approval in the US then you should consider opening a foreign account.
A bank account would still mean that you can deposit your money here and have it insured but applying in a foreign bank would imply that it would not look into Chexsystems report.
5. Online Banking Services and E-Wallets
There are e-Wallets where you can make an account online and store your money there. They are helpful when you want to get better at managing funds.
Is It Possible To Fix Your Record With Chexsystems?
The data collected and presented by Chexsystems will be reflected on your records for up to 5 years. However, there are a few steps that you can take to have it removed.
If you think that the report is inaccurate then you can always get in touch with customer support team and request for the remove.
You can do so by calling 800-428-9623. However, a negative item can only be removed if you have a proof that it is incorrect. Otherwise, there is no use of opening a dispute because it will be turned down.
If your dispute is successful you have to request Chexsystems for an update so the new records is added to your report as soon as possible.
Before You Go!
So this was all about Banks that don’t use Chexsystems. Also remember, you can always call 800-428-9623 to get more information on your Chexsystems records.
Moreover, customers can also send in a written query to the address “Chexsystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MN 55125.” Good Luck!
Miriam Caldwell is a dedicated & expert freelance writer to educate people about personal finance management and budgeting. She shared her knowledge and published the articles at TheBalance.com, GOBankingRates, and BlissfullyDomestic.com. Many financial institutes pick Caldwell as the brilliant source for educational personal finance content.