11 Banks That Don’t Use ChexSystems
Mia Young
ChexSystems is a reporting agency that collects all the information from banks and credit unions on consumers’ checking and savings-related accounting activities. The agency uses this information to create consumer reports. Financial institutions can use to screen potential customers for their creditworthiness. It works on the federal Fair Credit Reporting Act (FCRA).
However, some banks choose to ignore a bad credit report given by agencies and give customers a second chance to maintain a checking account. They are also known as banks that do not use ChexSystems.
After researching 40+ Banks That Do Not Use ChexSystems, I have invested over 100+ hours creating this insightful, free and paid banking options guide. My in-depth and trusted review covers the essential features of each bank, highlighting both pros and cons. Read this exclusive article for a well-researched, unbiased view of your best banking choices. Read more…
Chime offers a mobile bank account and debit card without any credit check. There are no hidden bank fees. You can also get your paycheck up to 2 days earlier with direct deposit.
Second Chance Banking Accounts with No Opening Deposit: Banks without ChexSystems
| Name | Foundation Year | BBB rating | Monthly fee | Minimum deposit | Minimum balance | Link |
|---|---|---|---|---|---|---|
| 👍 Chime | 2013 | A+ | None | None | None | Learn More |
| 👍 Current | 2015 | B | None | None | None | Learn More |
| SoFi | 2011 | A | None | None | None | Learn More |
| TD | 1855 | N/A | $5.99 | None | None | Learn More |
| PNC | 1964 | A- | None | $25 | None | Learn More |
1) Chime
Chime made it possible for me to open a mobile bank account and get a debit card without worrying about a credit check. I could access my paycheck sooner than expected, as direct deposit gives you early access by up to two days.
Chime, established in 2013, offers an amazing way to manage your finances. I could access over 38,000 fee-free ATMs, which made withdrawals simple. The optional automatic savings account allowed me to earn 0.50% APY on my savings effortlessly. It offered me daily balance updates through the mobile app and website, which was helpful to keep track of my finances. I particularly liked that Chime has no monthly service charge or overdraft fees, which made it a top choice in my opinion. Chime also provides a free debit card and lets you transfer money, send checks, and pay bills without hassle.
Pros
Cons
Key Specs:
Monthly fee: $0
Minimum deposit: $0
Minimum balance: $0
Foundation Year – 2013
2) Current
During my review of Current, I found that it provided me with an efficient way to save money. The app, launched by Stuart Sopp in 2015, connects users to banking services from Choice Financial Group and Metropolitan Commercial Bank, both FDIC members. The Visa Debit Card, issued by these banks, is one of the best features for easy access to funds. This app is ideal for those looking for a modern banking solution.
Pros
Cons
Key Specs:
Minimum opening Deposit: $0
Pricing: 1) Basic: $0/month, 2) Premium: $4.99/month, 3) Teen 4) Banking: $36/year per teen.
Minimum balance: $0
Foundation Year – 2015
3) SoFi
SoFi is a superior choice for those who want to keep their finances away from ChexSystems. It allowed me to earn a 0.25% APY on balances over $500, and I found the member benefits like career coaching and financial advice to be top-notch.
SoFi, established in 2011, offers a top-notch banking experience with no hidden fees and unlimited reimbursed ATM fees. I particularly liked the cash bonuses it offers, along with high-yield interest rates without requiring a credit check. It is a great option for easy P2P payments, with no extra cost, and the ability to freeze your debit card on the go is impressive. I found that Chime’s FDIC-insured deposits through the SoFi Money sweep program, covering up to $1.5Mn, provide excellent security.
Pros
Cons
Key Specs:
Monthly fee: $0
Minimum deposit: $0
Minimum balance: $0
Link: https://www.sofi.com/
4) TD
TD, established in 1855, offers an affordable checking account ideal for managing personal finances. In my opinion, it is one of the best options for both individuals and businesses. The bank provides a free debit card, making it a top-rated choice for those seeking to avoid fees. With 24/7 customer support, issues can be resolved quickly and efficiently.
Pros
Cons
Key Specs:
Monthly fee: $5
Minimum deposit: $0
Minimum balance: $300
Link: https://www.td.com/
5) PNC
In my experience with PNC, I found that they offer online checking accounts without relying on ChexSystems. Users enjoy a hassle-free experience through a fast and easy setup of checking account. I particularly liked that they provide accounts for people with bad credit, which is a great option. In fact, PNC allows you to manage everything online, making the process smooth.
PNC, founded in 1964, offers robust mobile banking services with seamless access to online banking, bill pay, and mobile deposits. It is great for keeping track of purchases and providing instant transaction alerts. I particularly appreciated the cashback rewards offered for everyday debit card purchases. Additionally, ATM fees charged by other banks were automatically reimbursed, making it one of the best options. PNC is ideal for anyone seeking a low-interest rate bank with remarkable features, including their online second-chance banking services and extensive availability across the U.S., excluding Alaska and Hawaii.
Pros
Cons
Key Specs:
Monthly fee: $5
Minimum deposit: $25 minimum opening deposit
Minimum balance: $0
Link: https://www.pnc.com/
6) Navy Federal
Navy Federal offers an awesome opportunity for people seeking to check accounts without ChexSystems. I was able to access exclusive memberships. It is ideal for the Armed Forces, Coast Guard, and National Guard. The flagship checking account is a top-rated option for its exceptional features.
Navy Federal, established in 1933, is one of the best financial institutions with an A+ BBB rating. It helped me access free active duty checking with no credit check, which is perfect for those in service. Their free everyday checking and mobile deposits are ideal for day-to-day banking needs. I recommend keeping in mind that dividends are credited monthly, and you can view them effortlessly on the website.
Pros
Cons
Key Specs:
Monthly fee: None except for a $10 fee for Flagship Checking
Minimum deposit: $0
Minimum balance: $0
Link: https://www.navyfederal.org/
7) US Bank
I checked US Bank’s services. The bank made it possible to open a checking account without ChexSystems, which helps you avoid complications. I found that it is one of the best ways to bank without worrying about minimum deposits. For seniors aged 65 and older, it waives monthly fees, which I personally recommend for retirees.
US Bank, established in 1968, is one of the top-rated financial institutions with an A+ rating from BBB. I found their online savings account to be trustworthy, offering a fraud-free experience. It is ideal for anyone looking to rebuild credit scores, and the easy standard checking account provided great flexibility for my needs. Getting approved for a loan without a credit check is one of the best features. The mobile app made it simple for me to send, receive, and request money, making US Bank a remarkable and convenient option.
Pros
Cons
Key Specs:
Monthly fee: $4.95
Minimum deposit: $25
Minimum balance: $0
Link: https://www.usbank.com/
8) Renasant
Renasant Bank offers a variety of banking services across Mississippi, Alabama, Tennessee, and Georgia. Their digital banking services, along with savings, loans, and mortgages, are particularly notable. I found their wealth management services helpful in managing my finances more efficiently. The bank offers three checking accounts and a student account.
Renasant, founded in 1904, has a long-standing history of providing excellent banking services. Their Rewards savings accounts are perfect for anyone looking to grow their funds. I could also access their Rewards Checking accounts, which offer higher interest rates. Their regular account updates on the website are helpful for staying informed about financial growth.
Pros
Cons
Key Specs:
Monthly fee: No fee with eStatements, direct deposit, or a $1,000 balance. Otherwise $10.
Minimum deposit: $50
Minimum balance: $0
Link: https://www.renasantbank.com/
9) United Bank
United Bank, founded in 1839, is great for everyday banking. It provides great options for those with little or no credit. I particularly appreciate their personal loans, secure Visa credit card, and Gateway Checking account. Their account options are perfect for a range of financial needs. The best way to handle any issues is through their reliable customer support.
I could access a free debit card for purchases, which is perfect for managing my expenses. It offered me the convenience of free ATM withdrawals at over 42,000 locations. I recommend it, especially with its mobile check deposit feature and discounts from multiple retailers. It is a top-notch option for those in Alabama and Florida.
Pros
Cons
Key Specs:
Monthly fees: $0
Minimum deposit: $50 for retail accounts
Minimum balance: $0
Link: https://www.bankwithunited.com/
10) First American Bank
First American Bank, founded in 1974, has a strong reputation and a BBB rating of A+. It offers services to residents of Illinois, Florida, and Wisconsin. I could access its services with ease, and I liked that it does not require a minimum balance. The free digital statements feature makes it a superior choice for those who prefer online banking.
I found that it offers waivers for monthly charges, which could be a great way to save. It also provides eStatements for easy access to account information. I particularly liked that it allows you to access over 55,000 surcharge-free ATMs, which is essential for convenience.
Pros
Cons
Key Specs:
Monthly fee: $9.95
Minimum deposit: $25 deposit
Minimum balance: $0
Link: https://www.firstambank.com/
11) First Convenience Bank
First Convenience Bank, located in Texas, New Mexico, and Arizona, offers an easy way to open an account with only $20. This bank is a remarkable choice for lowering business costs, and I would recommend it to anyone in need of a second-chance banking option.
First Convenience Bank, established in 1901 with a BBB rating of A+, offers various accounts like savings, money market, and kids’ accounts. The money market account combines the features of savings and checking while offering higher interest rates for larger deposits. In fact, it provides unlimited withdrawals and transfers for savings accounts under certain conditions, making it a superior choice for flexible banking needs. It is important to consider this bank for your account options if you aim to maximize interest rates and flexibility.
Pros
Cons
Key Specs:
Monthly fee: $12
Minimum deposit: $20
Minimum balance: $0
Link: https://www.1stnb.com/
What Is ChexSystems?
ChexSystems is a reporting agency that collects all the data from banks and credit unions on consumers’ checking and savings-related accounting activities. The agency uses this information to create consumer reports. Financial institutions can use to screen potential customers for their creditworthiness information. It works on the federal Fair Credit Reporting Act (FCRA).
How do we select the best Bank that does not use ChexSystems?
At Guru99, we are committed to providing accurate, relevant, and objective information through rigorous content creation and review. After researching 40+ banks that do not use ChexSystems, I have invested over 100 hours in creating this insightful guide. My trusted review covers essential features, pros, and cons of each bank, offering both free and paid options. This well-researched, unbiased article provides a comprehensive view to help you find the best bank that offers reliable services without ChexSystems, avoiding challenges from traditional banking checks. Here are some criteria for selecting the best option.
- The Minimum Deposit to Open an Account: Non-ChexSystems banks have little to no minimum deposits when you open an account. Therefore, you should select a Bank that has the lowest required minimum deposits and, at the same time, does not sacrifice key features.
- Account Requirements: Research what non-Chexsystems banks ask for when you open a checking account for bad credit with them. Requirements may include your social security number and other government-issued IDs.
- The Signup Process: Since lengthy processes are usual for bigger banks, you should check how easy or difficult it is to open an account with each Bank. This helps you find the most convenient one for you.
- Banking Services: You should look for a Bank that offers regular banking services like a savings account, such as offers, upgrades, deposits and withdrawals, and other features.
- Monthly Fees: You should also check and compare how much you’ll spend monthly using each banking service. Look for a non-ChexSystems bank that offers services at lower monthly fees.
- Hidden Fees: Hidden fees, such as monthly service charges, can ruin your banking experience. You should also check which banks do not have hidden fees and have reasonable charges for higher-quality services.
- ATM Network: This kind of banks should have ATMs available nationwide to make it easier for you to withdraw or deposit money. You need to check which banks have the most ATMs available for their customers.
- Fees on ATMs: When using in-network ATMs, you usually do not have to pay any fees. However, out-of-network ATM transactions often charge fees.
- Check Writing: Checking accounts for poor credit are convenient for writing actual checks. You should check for banks that offer no-ChexSystems checking accounts and savings accounts so that you can choose wisely between them according to your business.
- Cashback Rewards: If you frequently use your account for purchases, it’s great to have cashback rewards and other similar perks.
- Mobile App: Many non-ChexSystems financial institutions operate online. Most of them also have apps with mobile check deposits or card lock/unlock features.
- Daily Deposit Limit: Daily deposit limits can differ from traditional banks. You need to check which ones have higher limits and which ones have more flexible setups.
- Overdraft Fee: Some banks have the highest overdraft fees. These fees are charges you pay when your bank or credit union covers you for payment, transfer, or withdrawal that exceeds the funds available in your checking account.
- Mobile Deposits and Transfers: Mobile transactions are necessary for a seamless banking experience. The more flexible they are, the better the experience. You should check which banks have the most convenient mobile deposits and transfers.
- Fraud-Free Record: Look for banks with the cleanest records in terms of fraud accusations or reports. The best checking accounts online for bad credit always come from non-ChexSystems banks with trusted reputations and user-friendly websites.
- Second Chance Savings Accounts: You need to look for second chance banking accounts that allow you to have a fresh start despite negative ChexSystems reports. These online accounts have slightly different features from second-chance checking offered by online banks.
- Customer Support Service: You should look for Second chance banks that have the best customer support reputations.
- Typical Approval Time: Approval time is also an important factor. As a non-traditional banking option, applying for a non-ChexSystems account should be quick and straightforward.
- Foreign Transaction Fees: Banks charge these fees for purchases or transactions made in foreign currencies. If you need to travel abroad or you are a frequent traveler, you should select a bank with low foreign transaction fees.
How to Get Approved for Banks that Don’t Use ChexSystems
Registration for Banks that don’t use ChexSystem is straightforward and follows requirements similar to traditional banks.
Following are the steps to get approved for banks that don’t use ChexSystems:
Step 1) Check the Non-ChexSystems bank’s requirements.
While some banks might not perform a credit check on applicants, they may require government-issued IDs, social security numbers, and other personal or business information. You need to check what the Bank needs from you before signing up to get approved.
Step 2) See your Credit check report information and dispute any errors
Most account denials occur because of poor credit ratings, which stem from less-than-perfect credit check reports by the three main credit bureaus. However, before signing up with a non-ChexSystems bank, you need to go through your credit report. However, if you find any errors, dispute them. If you’re successful in this, you may end up being eligible for an account in bigger and more traditional banks.
Step 3) Choose a Second Chance Bank Account
A second chance account is an alternative where banks with no ChexSystems or credit unions do not look past your poor credit.
Step 4) Use a Prepaid Debit Card
You can also consider using prepaid cards, which aren’t linked to an online checking account, non- ChexSystems, or a credit union account. Using the prepaid card, you deposit money in advance.
Step 5) Know which features you want
While some features may differ from one account to another, ChexSystems-free banks are similar to traditional banks. They offer features that include online banking information, mobile deposits, and free in-network ATM usage.
Step 6) Use the account wisely
You need to make sure you use your account wisely. Avoid unpaid fees, overdrafts, and other things which may affect your credit report negatively.
What are the ChexSystems Scores?
ChexSystems assigns customers a risk score ranging between 100 and 899. The lower your risk score, the greater risk you have as a potential banking customer, so you should have a higher score as possible.
There is no definitive range of scores for ranking good, bad, or in the middle. This is because ChexSystems does not release its internal metric information for calculating risk scores to the public.
Benefits of Banks that don’t Use ChexSystems
Here are the pros/benefits of banks that don’t use ChexSystems:
- Save on check-cashing fees: It saves your money by not using check-cashing services.
- Avoid prepaid debit card fees: Prepaid debit cards often come with a myriad of fees. For example, Netspend’s monthly fee is $9.95, the reload fee is up to $3.95, and the ATM withdrawal fee is around $2.50.
- Keep your money safe and secure: It offers a secure and convenient place to stash your cash.
- Built-in fraud protection: It provides built-in fraud detection, which means purchases made with bank debit cards offer zero liability for fraud and help you secure non-Chexsystems business transactions.
- Become BFFs with your Bank: Establish a relationship with your banker that helps you to engage in relationship banking. Your bank can approach you with better offerings on loan rates, insurance, and certificates of deposit for secure transactions.
- Get a mortgage loan: Mortgage lenders need you to provide recent bank statements while applying for a mortgage loan without a credit check. Prepaid debit cards are not the same as having traditional bank statements.
Why you need a Non-ChexSystems account?
Here are the reason why you should opt for Non-ChexSystems Account:
- Does not need any minimum balance.
- Low or no monthly fee.
- Ability to write checks.
- Online and mobile banking features.
- Allows you to access the large ATM network.
- You can make purchases with your bank card that carries zero liability for fraudulent transactions.
Verdict:
In this review, you discovered some remarkable banking solutions. Each of these banks provides phenomenal alternatives to those struggling with ChexSystems records. Here is my verdict.
- Chime is a top choice for its secure, cost-effective, and reliable online banking experience with no fees.
- Current delivers a remarkable and user-friendly banking experience with amazing overdraft protection and customization.
- SoFi offers a comprehensive range of financial tools, making it a powerful and secure option without involving ChexSystems.