If your requests to open a new bank account have recently been getting rejected, you might need to take a step back and assess your credit score.
Clients with poor credit ratings can’t freely open checking accounts. Commercial banks partner with consumer reporting agencies to gauge your creditworthiness before approving your application.
However, we want you to know that it’s never too late to improve your financial situation.
To help you take charge of your finances and open a regular checking account, we’ve made an extensive list of banks that don’t use ChexSystems. They’re more likely to open checking accounts with no credit checks.
Please stick with us until the end. We’ll explain why consumers trying to boost their credit scores shouldn’t rely too much on one alternative option.
What Is ChexSystems?
Before anything else, let’s briefly discuss what ChexSystems does.
At a basic level, it’s a consumer reporting agency. While credit unions track credit activities, ChexSystems focuses on transactions involving deposit, savings, and checking accounts.
The institution helps banks assess your history with non-credit banking products. The system detects violations like you going under the maintaining balance or paying with an insufficiently funded check.
As such, if you have bad ChexSystems records, you’ll generally have trouble opening bank accounts.
20 Banks That Don’t Use ChexSystems
Although ChexSystems is a reputable, widely trusted consumer reporting agency, not all banks and unions rely on its data.
Many institutions are open to clients with non-stellar credit. So if you’ve recently been denied a checking account for negative banking histories, you can try your luck at the following non-ChexSystems banks and unions.
1. Wells Fargo
Wells Fargo stands as one of the largest financial institutions worldwide. It has provided U.S. citizens with various products, from savings accounts to credit lines, since 1852.
Clients trust Wells Fargo for its accessibility. Once you have a bank account with them, you’ll gain access to 12,000+ ATMs and 4,900 branches in 33 different U.S. states and areas.
Despite being a commercial bank, it doesn’t use ChexSystems. The institution pulls data from Experian before approving loan applications, but it doesn’t reject checking account applicants too often.
You wouldn’t have trouble qualifying for a bank account. Based on reviews, you’ll get a regular checking account with overdraft protection and a fair maintenance balance.
Wells Fargo doesn’t limit bad-credit clients to just one second-chance bank account. On the contrary, you can apply for several banking products, although you likely qualify for all.
2. Capital One
Capital One is a widely known commercial bank founded in 1994. It has 750+ branches and 2,000 ATMs nationwide, although you can access your checking account from 70,000+ MoneyPass, Allpoint, and Capital One ATMs.
Capital One stopped using ChexSystems five years ago. At the time, more than 2.3 million checking account applicants were getting rejected for bad banking histories.
What’s worse is that many of these people weren’t at fault. Consumer reporting agencies flag anyone with negative transactions, regardless if they already filed for bankruptcy, got laid off from work, or fell victim to financial identity theft.
The institution wanted to make a difference. It overhauled its screening policies to help a broader range of clients qualify for bank accounts.
Nowadays, Capital One clients undergo much less extensive screening measures. You’ll no longer need impressive ChexSystems records, although you’d qualify for several more banking products if you had at least good credit.
3. Chime
Unlike the other items on this list, Chime isn’t a commercial bank. It’s a financial technology company under Stride Bank and Bancorp Bank that offers financial services through commercial banking partners.
Clients can choose from several checking and savings accounts. And even if the company isn’t a commercial bank per se, all funds deposited are still insured and protected by the FDIC.
Chime never uses ChexSystems. It does soft credit pulls before approving credit card applications, but it follows a less intensive screening process for checking accounts.
Moreover, you can open an account for free because Chime has minimal maintenance charges and zero application fees. Direct deposits will even come in two days earlier.
Just note that Chime doesn’t have any physical locations. You can only apply for its banking products through its website or smartphone app.
Likewise, Chime doesn’t have its own ATMs. But it has an extensive network of 60,000 MoneyPass and Allpoint ATMs, which support fee-free transactions.
4. Axiom Bank
Axiom Bank is one of the most popular community-based banks in Florida. Although it only has 24 branches, clients can access their checking accounts through nearly 8,000 Axiom ATMs nationwide.
Axiom Bank generally refers to ChexSystems and credit union reports. However, as a community-based banking institution, its primary mission is to support local clients struggling with commercial bank services.
The company welcomes everyone. Regardless of your banking history, you could qualify for any of their no-check and second-chance bank accounts.
Most of its accounts don’t require a maintaining balance. However, expect to pay around $12 monthly for maintenance fees, depending on your preferred account.
Perhaps the only downside is that Axiom Bank only has physical locations in Florida. But if you don’t mind using your Axiom account as a mobile banking account instead of a traditional one, you can consider applying online.
5. TD Ameritrade
TD Ameritrade isn’t a bank. The stock brokerage firm is more widely known for its electronic trading platform, but it also offers cash management services and accounts.
You won’t undergo ChexSystems reviews to bank with TD Ameritrade. At most, the brokerage firm only reviews your credit score and assesses your financial capacity to fund trades.
It doesn’t charge monthly fees nor require a maintaining balance. Once you open and fund your brokerage account, you’ll automatically have a checking account, which you can access from any ATM nationwide.
Although the features sound appealing, it’s important to note that all trades carry some degree of risk. Your funds will either increase or decrease depending on where you place your money.
You have to choose your investments wisely. TD Ameritrade offers several options, from common stocks to futures contracts, so don’t blindly buy shares from the first company you recognize.
6. Axos Bank
Axos Bank is one of the largest online banks in the U.S. It has three physical locations, was founded over two decades ago, and supports fee-free withdrawals through 90,000 ATMs across the country.
Many online banks overlook ChexSystems. What sets Axos Bank apart is its broad range of no-check and second-chance bank accounts.
Clients can choose from five checking account options. Each account either focuses on cashback, high-yield annual returns, payment rewards, or low maintenance fees.
On the other hand, its competitor banks usually only offer one type of account to clients with bad ChexSystems records. And most of them will come with steep fees.
7. Navy Federal Credit Union
The Navy Federal Credit Union is a nonprofit, member-owned credit union that exclusively caters to veterans, military personnel, and their immediate families.
As a nonprofit organization, the Navy Federal Credit Union provides no-check and second-chance banking options to its members with bad banking histories. You could also qualify for personal loans depending on your current status.
The union doesn’t charge monthly fees nor require a maintaining balance, although you’ll have to shell out $10 for flagship checking. You can only waive this fee if you maintain a $1,500 daily balance.
We strongly suggest banking with the Navy Federal Credit Union if you or your immediate family member is affiliated with the military.
Its products have comparatively lower fees than commercial banks, after all. You could qualify for even better rates if you demonstrate a strong financial capacity, positive banking history, and fair credit ratings.
8. Current
Current is a relatively new mobile banking app founded in 2015. The fintech company offers an array of banking products, from checking accounts to crypto investments, through Choice Financial Group and Metropolitan Commercial Bank
It has no physical locations. However, checking account holders can access their funds through 55,000+ fee-free ATMs nationwide.
Current offers just one type of checking account. Whether you have good or bad ChexSystems records, you could open an account and start banking within a few minutes.
Also, Current boasts impressive yield returns. Clients enjoy a 4% APY checking account with no maintaining balance, minimal fees, fast direct deposits, and zero overdraft charges.
Compared to its traditional alternatives, Current is more affordable and convenient.
Just remember that Current doesn’t have physical branches. You can perform all transactions, withdrawals, requests, and complaints through its website.
9. Chase Bank
Chase Bank is one of the largest commercial banks in the U.S. It has 4,700 physical locations and 16,000 ATMs, although you can perform fee-free transactions in almost any MoneyPass or Allpoint machine.
The bank offers a broad range of products. Most of its savings and checking accounts require ChexSystems records, but it still accommodates clients with bad banking histories.
You can consult Chase’s representatives. They’ll advise you on which no-check and second-chance bank accounts suit your financial situation best.
You might expect some plans to have steep fees. However, if you can demonstrate your financial capacity or good credit ratings, you could qualify for better options.
Just don’t jump at the cheapest plan you see. Chase has hundreds of merchant partners nationwide, and some of its more expensive products come with massive perks and discounts.
10. U.S. Bank
U.S. Bank is one of the oldest commercial banks in the country. It was founded in 1863 after former President Abraham Lincoln approved the National Charter #24.
U.S. Bank’s regular checking accounts require ChexSystems records. It has restrictions against applicants with a history of going below their maintaining balance or paying with insufficiently funded checks.
But you can apply for its no-check option, the Safe Debit account.
Its transaction limits aren’t as high. You’ll also get basic cash management features like bill payments, interbank transfers, and ATM withdrawals.
Safe Debit accounts also have zero overdraft fees. Just make sure to link another active bank account to it so that your failed transactions are automatically redirected.
11. Renasant Bank
Renasant Bank is a widely known commercial bank in the south. It has 200+ locations in Florida, Georgia, Tennessee, Alabama, and Mississippi.
The bank owns 225+ ATMs in these states, although you can make fee-free withdrawals through any qualified machine nationwide.
Clients prefer Renasant Bank for its lenient screening procedures. Not only does it overlook ChexSystems records, but it provides several banking services to clients with negative banking histories.
You can choose from three different checking accounts. They come with a $5 to $10 monthly fee, which you can waive depending on your daily maintenance balance.
You can weigh which of the three options suits your needs. You shouldn’t blindly jump at the cheapest product with the lowest balance and deposit requirements.
For instance, let’s say you want to save money. You’d do well to consider the Rewards Savings plan since it provides a higher APY than other checking accounts.
12. SoFi
SoFi is an online bank founded in 2011. Its cash management and personal finance platform significantly evolved over the past decade.
The company now offers several retail banking services. You could even qualify for at least three checking accounts without undergoing ChexSystems screening.
Its regular bank account has no maintaining balance and offers a 0.25% APY. If you opt for direct deposit accounts, you can bump your APY to 3.25%, depending on your monthly maintaining balance.
Since SoFi is an online bank, expect to perform all your transactions online. You’ll pay your bills, transfer funds, and cash in funds from your smartphone or desktop, although fee-free withdrawals are available in 55,000+ Allpoint ATMs.
We suggest using SoFi to jumpstart your long-term savings. Once you improve your banking history, you’ll qualify for a broader range of checking accounts from various banks.
13. United Bank
United Bank was founded in 1839, making it one of Virginia’s oldest, most widely known commercial banks. It operates as a subsidiary of United Bankshares, Inc.
The company has 220+ branches in eight states. You’ll find most locations in Virginia, South and North Carolina, and Maryland, although 42,000+ ATMs nationwide support fee-free transactions.
United Bank offers various products to clients with bad banking histories. You could still qualify for regular bank accounts, checking accounts, credit cards, and personal loans, regardless of your credit rating.
As for checking accounts, it doesn’t pull ChexSystems reports. The institution follows risk-management factors based on its in-house monitoring system.
United Bank also has a relatively advanced mobile banking app. It rarely crashes, supports mobile check deposits, executes bill payments, and accommodates interbank transfers.
And make sure to check your account’s features online. The company offers several discounts and promos with its partner merchants.
14. First American Bank
The First American Bank has 60+ physical locations in Florida, Wisconsin, and Illinois, although you can make fee-free withdrawals in 55,000+ ATMs nationwide.
You can explore its checking account options. It provides various personal and business banking solutions, including no-check and second-chance bank accounts.
Not only do they overlook bad ChexSystems histories, but they also come with minimal fees and maintenance charges.
A regular checking account has a $9.95 monthly fee. However, you could waive it if you maintain a higher daily balance in your checking accounts.
Another selling point of First American Bank is its online platform. Compared to other traditional commercial banks, it has a much faster and smoother mobile banking UI.
Reviews rarely mention bugs. You could rely on it for money transfers, bill payments, online shopping, and in-store purchases daily.
Should an issue arise, you could easily dispute it with routine eStatements. The First American Bank provides all its clients with access to summaries of their purchases, deposits, and withdrawals.
15. Woodforest National Bank
The Woodforest National Bank is a community bank/regional financial institution founded in 2013. Despite being a relatively new organization, it has already built 750+ physical locations in 15+ states.
Woodforest National Bank isn’t a non-ChexSystems bank. It only offers second-chance banking services to clients with negative histories.
Generally, several larger commercial banks carry second-chance checking accounts. What sets Woodforest National Bank apart from them is its affordable maintenance fees and setup requirements.
An account’s maintenance fees range from $9.95 to $11.95, plus it requires a minimum initial deposit of $25. Most checking accounts don’t have overdraft fees.
Once you improve your banking ratings with Woodforest National Bank, try upgrading to a regular checking account. That way, you’ll pay even less in fees.
16. PNC
PNC was founded in 1865, making it one of the oldest commercial banks in the U.S. It has 2,600+ physical locations and 9,500+ ATMs in 27+ states, but fee-free transactions are available in 41,000 Allpoint ATMs nationwide.
PNC generally pulls data from credit unions and consumer reporting agencies like ChexSystems. However, it still accommodates clients with bad banking histories.
The institution started offering no-check banking products after it acquired BBVA USA, a widely known non-ChexSystems bank.
PNC’s most popular no-check product today is the Foundation Checking account. It has $0 overdraft/returned item fees, a $25 minimum opening deposit, and a $5 recurring maintenance fee.
You can also use the Foundation Checking account to make digital payments. Just make sure to monitor your outgoing funds because it doesn’t have high transaction limits.
17. SunTrust
SunTrust was founded in 1891. It currently has 1,200+ physical locations and 2,000+ ATMs in 10 states, including Georgia, Alabama, and Mississippi.
Despite its tenure as a commercial bank, it doesn’t use ChexSystems reports for risk management. Instead, the institution follows in-house guidelines.
Clients with bad banking histories will get access to several checking account options, which include modern features like bill payments, no-overdraft fees, direct deposits, and mobile banking. Maintenance service fees start at $7, plus you’ll have to shell out for the initial deposit.
Another selling point of SunTrust is its free ID theft monitoring services. Clients who accumulated negative transactions due to fraud can use this feature to build their ratings again gradually.
18. GoBank
GoBank is a non-ChexSystems financial federal credit union bank. It was founded in 2003, operates as an online bank, and has an extensive network of 42,000+ fee-free ATMs nationwide.
You can apply for GoBank’s no-check checking account through its website or mobile platform. All of its plans come with a free debit card.
It also accommodates modern mobile banking services like instant transfers, bill payments, interbank fund deposits, and online check scanning. Just make sure to download the app for the full features.
Monthly recurring fees start at just $8.95. Although most plans don’t require a minimum initial deposit, more high-risk no-check accounts might need at least $25.
19. Southwest Financial Bank
The Southwest Financial Bank is a non-ChexSystems federal credit union founded in 1962. It’s an online-only bank based in Texas, but clients can access their funds through 55,000+ fee-free Allpoint ATMs nationwide.
As mentioned, many online banks overlook ChexSystems records. Southwest Financial Bank sets its company apart by offering another tier of no-check banking called Checkless Checking.
The account accommodates clients with terrible credit, and ChexSystems reports. It also accepts applicants who have already been denied second-chance checking accounts at other financial institutions.
Just note that Southwest Financial Bank is 100% paperless. It won’t charge you recurring fees, but you’ll have to perform all your transactions through its mobile platform.
20. Novo Bank
Novo Bank is a relatively new digital bank founded in 2016. It has 32,000+ fee-free MoneyPass ATMs nationwide, although it also refunds non-network transaction fees.
The bank offers a no-check checking account with zero maintenance fees, minimal initial deposit requirements, mobile check deposits, and fast fund access. One downside is it doesn’t generate interest.
However, Novo Bank also has several helpful add-ons like unlimited invoicing and bill payments, plus you can integrate it with other platforms like PayPal, Stripe, and QuickBooks.
Considering its business features, we highly recommend Novo Bank to small businesses and startups that execute multiple transactions daily. That way, you could maximize the fast fund transfers, avoid losing money to fees, and not be affected by the zero APY.
Why Choose Banks That Don’t Use ChexSystems
Although most commercial banks offer second-chance banking accounts, we suggest exploring non-ChexSystems banks for the following benefits:
Non-ChexSystems Banks Don’t Require ChexSystems Records
Perhaps the most obvious benefit of going to non-ChexSystems banks is they don’t pull consumer reports from ChexSystems. Although you have a negative banking history, you can qualify for regular checking accounts.
Just note that they don’t report to ChexSystems, so opening credit and bank accounts with them might not improve your ratings.
No-Credit-Check Bank Accounts Have Fair Fees
No-credit-check bank accounts have better fees than second-chance banking plans. They still classify as regular accounts, after all.
Some institutions even offer no-credit-check bank accounts with very low maintenance fees, which let you exhaust your funds should you need them.
Non-ChexSystems Banking Clients Still Get Overdraft Protection
Second-chance bank accounts rarely qualify for overdraft protection. On the other hand, non-ChexSystems banks will still cover insufficiently funded transactions if you have several accounts with them.
How to Open an Account at Banks That Don’t Use ChexSystems
In general, here’s what you have to do if you want to open an account at banks that don’t use ChexSystems:
- Go to non-ChexSystems banks
A non-ChexSystems bank outright ignores the consumer reports from ChexSystems. You’ll still have a shot at qualifying for regular checking accounts despite your bad banking history.
- Exploring second-chance bank accounts
Commercial banks offer second-chance bank accounts to people with negative financial records but need checking accounts. Their target customers include various characters, from ex-convicts to unemployed individuals.
- Opting for high-risk banking products
You’ll find many financial institutions that offer traditional banking products to high-risk clients. Just prepare to pay higher fees.
Please don’t shy from asking about non-ChexSystems banking services. Lenders and commercial banks can only help you find suitable products if you honestly explain your situation.
Are There Alternatives to Banks That Don’t Use ChexSystems?
Yes, you have other options besides banks that don’t use ChexSystems, especially if you don’t necessarily need a checking account but other financial products.
Although banks that don’t use ChexSystems follow a more lenient screening process, they don’t just automatically approve applications. Some institutions might even require high-risk clients to pay higher fees.
If you don’t like the products available from these banks, we suggest exploring the top alternatives to no-credit-check bank accounts. You can check if they’ll suit your current financial situation better.
Second-Chance Checking Accounts
Most commercial banks offer second-chance checking accounts. For these products, the institution overlooks the applicant’s credit rating and ChexSystems history, giving them a second chance at banking.
It’s important not to confuse no-credit-check with second-chance bank accounts.
The former is only available at non-ChexSystems banks, while the latter is a special product geared toward clients with bad banking records. Some institutions that offer second-chance bank accounts may still use ChexSystems for their other services.
Secured Credit Cards
If you don’t qualify for credit loans, try secure credit cards instead. Although you can use them exactly like regular credit cards, your issuing bank won’t require a credit check.
The only difference between regular and secure credit cards is that the latter requires cash deposits upfront, which will dictate your credit limit. However, most banks will let you withdraw your deposit after a year.
You must utilize them properly. Since credit unions screen secured credit card activities, your rating might improve if you pay your dues on time.
Prepaid Debit Cards
Prepaid debit cards are good alternatives to regular bank accounts. You can use them to pay for online and in-store purchases, save money, and transfer funds via online purchases.
They won’t require ChexSystems records. Just note that most banks limit prepaid debit card transactions, so avoid keeping more than a few grand.
Warning: Although prepaid debit cards might seem like a convenient workaround to bank accounts and credit cards, don’t rely on them too much.Â
Remember that prepaid debit cards don’t affect your credit history. No matter how much money you deposit into these accounts, your overall rating won’t improve.
You can still use them now and then. However, you’d do well to focus on banking products that credit unions screen for consumer reports, like checking accounts, loans, or credit cards.
Getting Approved for a Checking Account Regardless of Your Credit Rating
Overall, poor credit ratings will limit your banking activities. Not only will you have trouble opening a checking account, but you’ll also face several issues with car financing, home mortgages, and personal loans, among other products.
However, this isn’t to say that you should give up. On the contrary, if you want to improve your ratings, prove your creditworthiness by paying back your debts, exploring low-interest loans, and opening a new checking account.
Please don’t get disheartened. You’ll find many banks and credit unions that don’t use ChexSystems—our list above is already an excellent starting point for your search.
Also, research all your options before deciding. Instead of blindly accepting the first offer for a checking account, carefully peruse the institution’s offerings and see how they benefit you.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
