Finding A Bank When You Have A Bad ChexSystems Report

Second Chance Banking

Have you tried to open a new bank account recently only to be denied? The reality is that almost 15% of applicants at banks get rejected for a new checking account every single day.

There are many reasons that this can occur, but the most common is because a company called ChexSystems has flagged them as a risk to the bank. However, there are banks that don’t use ChexSystems that might be a better fit for those in this situation.

Once you are listed on ChexSystems, you stay on it for five years. It can make it challenging and frustrating to try to open even a traditional checking account.

Since a lot of banks use ChexSystems, going into a random bank and trying to open an account doesn’t always end well. We’re surveyed over 1,500 banks and credit unions to find those financial institutions that don’t use ChexSystems.

These bank and/or credit union accounts come with many of the features and benefits you need with surprisingly high acceptance rates. Best of all, you can open an account today!

Our Top Recommendations For The Best No ChexSystems Banks

Open an account today!

1. Chime | Our Top Pick
Chime is a fast-growing internet-only financial company and our top choice for a second chance bank account.

And, best of all, Chime accepts almost all customers who apply. Even if you have bad or poor credit or have been blacklisted by ChexSystems or the credit bureaus.

Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts fees1, NO credit check, and NO CheckSystems. Opening an account is super easy. It takes about 2 minutes and you don’t have to make an initial deposit. Here’s what we like:

No Monthly Fees

For the past couple of years, Chime’s huge growth has come at the expense of the big banks and their outrageous fees. And it’s one of the best features of a Chime account. There are no monthly or annual service charges, no minimum balance requirement, no foreign transaction fees, no fees at over 60,000 ATMs2, and no fees for mobile and online bill pay.

Deposit Cash for FREE at Over 8,500 Walgreens

Having access to a physical location for cash deposits is important to Chime members. And now it’s easy. All you have to do is go into a Walgreens store, hand the cashier the cash you want to deposit along with your Chime card, and the deposit will show up in your account immediately. This offers Chime members more walk-in locations than any other bank in the U.S. With over 78% of the country within 5 miles of a Walgreens, this is a significant benefit for millions.3

Smart Technology

Unlike big banks, Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts.

You can transfer funds to friends and family, Chime members or not… and they can claim their money instantly4 without any additional apps. The Chime app also has a series of notifications that you can turn on or turn off so you stay in complete control. Misplaced or lost your card? You can instantaneously turn off your card using the app. No wonder over 300,000 customers have given the app a 5-star review.

Customers First

Chime was one of the first to offer a “round up” option. If you use your Chime card on a purchase of $10.65, Chime gives you the option of automatically rounding up to $11.00 and putting the remaining $.35 in your free Chime savings account. And that adds up over time! Plus, Chime pays 0.50% Annual Percentage Yield (APY)5 in interest on that savings account.

If you use direct deposit with your Chime account, you can get your paycheck up to 2 days early6. And Chime is just saying no to big bank NSF charges with a fee-free overdraft program up to $200. Finally, Chime just recently launched their Credit Builder credit card with no interest and no annual fee. We don’t think there is another company innovating for their customers like Chime.

Get a Chime Account Today!
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

2. Novo | No ChexSystems Small Business Banking
One of the most important steps to taking your business to the next level is the need to set up a business bank account. And if you get the right business account, it can give your growing business all the tools much larger businesses enjoy… without all the big business costs.

Novo understands small business owners and makes it easy to open and manage an account. As an online-only bank, you’ll find Novo strikes the right balance between technology, human touch, and real-world benefits. Here are some of our favorite features for Novo Business Checking:

  • NO monthly fees
  • NO minimum balance requirement
  • NO ATM fees
  • NO credit check or ChexSystems
  • FREE Mastercard debit card
  • FREE mobile app
  • FREE transfers, mailed checks, and incoming wires
  • FREE invoicing to create, send, and track invoices
  • FREE mobile check deposit

Business Banking Made Easy

There are no monthly fees, no minimum balance requirements, no incoming wire fees, and no transaction fees with Novo. Novo even refunds all ATM fees. You’ll never be charged for incoming or outgoing ACH transfers, debit card replacements, paper statements, or stop payments.

If you’d like, Novo will send free paper checks for your use. You can also use the app to have checks mailed out. The gotcha with paper checks is that if you don’t have enough money to cover the check, Novo will charge a fee of $27 for insufficient funds. And if you deposit a check from a customer that doesn’t clear, you’ll get whacked for $27.

Novo doesn’t allow you to deposit cash. Instead, you’ll have to use vendors such as USPS, Walmart, and grocery stores to exchange your cash for a money order. Then you can use the mobile check deposit feature to deposit the money order. Novo may not be the right business account for you if your business deals with a lot of cash.

Business Tools

You can manage your account from your computer or the Novo smartphone app. This allows you to avoid the hassle of visiting a physical bank. And the Novo Reserves budgeting tool allows you to set aside funds in your checking account for expenses such as payroll or taxes.

We especially like their fully integrated invoicing feature which allows freelancers and contractors to send and manage unlimited invoices. You can make payments by ACH transfer and if you are using the Novo Stripe integration you can accept payments through your Stripe account.

Novo seamlessly integrates with popular business tools such as Stripe, Shopify, Zapier, Quickbooks, and Xero. You can also connect Square, Wave, PayPal, Venmo, Apple Pay and Google Pay.

Discounts

Novo has a program called Novo Perks that gives you perks on wide range of business software and services such as Stripe, Quickbooks, Gusto, Google, Hubspot, Booking.com, and many more. For example, you can get $20,000 in fee-free credit card processing with Stripe.

Application Process

It takes about 10 minutes to sign up for a Novo account. You’ll need personal and business information, which may include a social security number, business tax ID, and business formation documents. They do not check your credit or use ChexSystems.

Novo is growing quickly. Their offering is popular with small business owners. The account approval process is currently taking 1-2 business days and once you’re approved, you can get full access to your account with a simple $50 deposit.

We like Novo. We think you’ll like it, too.

Open an account today!

3. Current | First Runner Up
Current is another web-only national bank that has some really great features… and has become one of the fastest-growing checking accounts for consumers who want it all without all the costs and hassles.

Why are we featuring Current on our website? It’s simple: they don’t use ChexSystems or your credit report to open a new account. Sign-up takes about 2 minutes and Current has extremely high acceptance rates. But what’s really cool are the incredible features offered with this account:

  • NO minimum balance
  • NO deposit required to open an account
  • NO overdraft fees when you overdraw by up to $100 with Overdrive™
  • NO fees at over 40,000 ATMS in the U.S.
  • Get your paycheck up to 2 days early with direct deposit
  • Earn 4.0% interest on your balance up to $6,000
  • Earn points for unlimited cashback at participating retailers
  • Send money instantly for free
  • An elegant but simple smartphone app
  • 24/7 member support

Current offers a really unique service it calls Gas Hold Removals. What’s a gas hold? Some gas stations may apply a hold from $50 to $100 when you use a debit card to pump gas. If you only pumped $10 of gas, but the gas station places a $100 hold on your funds, you won’t have access to the $90 difference for up to 3 business days! The Current debit card will immediately refund the hold so you have access to all your funds. We haven’t found that benefit anywhere in the marketplace.

Here’s what’s really important, though. Deposits are FDIC-insured up to the highest possible amount allowed: $250,000. We love the features, we love the smartphone app, and we love Current. That makes us think you’ll love them too.

Get a Current Account Now!
Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Metropolitan Commercial Bank, Members FDIC.

4. SoFi Money
The SoFi Money Cash Management Account is offered by SoFi Securities LLC, a FINRA registered broker-dealer. It’s a checking account on steroids and we love that. Plus, they don’t use ChexSystems to approve accounts. When you sign up and deposit at least $10 within 5 days, SoFi will deposit an additional $25 in your account immediately!

You get a debit MasterCard and a very slick smartphone app. You can make deposits, write checks, utilize electronic bill pay, and transfer money. There are no monthly fees or overdraft fees. Plus, you earn interest on all the money in the account! The sign-up process can take less than 60 seconds.

There is no minimum balance requirement and SoFi Money is available in all 50 states.

  • No account fees
  • Unlimited reimbursed ATM fees
  • Access to SoFi member benefits like career coaching and financial advising
  • Automated bill pay
  • Freeze debit card on-the-go

SoFi Money has been great! The account was easy to open and I got my debit card a few days later. The smartphone app is easy to use and I can check everything from my computer, too. I’ve had some issues with ChexSystems in the past and SoFi Money seems to be the perfect account.

Gena M., SoFi Money Customer

Get a SoFi Account Now!

5. Varo Bank
Varo Bank is another internet-only bank with services based on their mobile apps for Apple and Android devices. Varo doesn’t charge fees at 55,000+ Allpoint ATMs and offers strong budgeting tools and automatic savings programs.

When you open an account at Varo you can do so with no initial deposit. Plus, there are never any monthly maintenance fees, foreign transaction fees, transfer fees, or debit card replacement fees.

Finally, if Varo receives a payroll notification before your payday, it can deposit your money more quickly than many banks.

Get a Varo Bank account

6. Wells Fargo Bank
Wells Fargo Bank logoWells Fargo recently changed the Opportunity Checking account to Clear Access Banking. And we like one change, in particular. Wells Fargo has done away with overdraft and non-sufficient funds (NSF) fees. Clear Access Banking is a debit card-only account (no paper checks available) and if you attempt to purchase something without sufficient funds, the transaction will be denied. That’s a lot better than having the transaction approved and then discovering you’ve been hit with a $35 overdraft fee.

There is a $5 monthly fee, but that is be waived for account holders 24 years old and younger. This account is available to residents in all 50 states.

  • The largest number of branches in the U.S.
  • Minimum deposit of $25 to open an account
  • Online bill pay and smartphone app
  • Mobile check deposit
  • Includes a Visa debit card
  • Send and receive money through Zelle
  • Additional features include account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card

Get a Wells Fargo account

7. GO2bank
GO2bank is an offering of pre-paid card giant GoBank and we think it’s a step in the right direction. Like some of the newer “challenger banks” GO2bank will deposit your direct deposit check up to 2 days early and has cashback rewards on several categories of purchases. This account also makes you eligible for the GO2bank credit card, which has no annual fee or required credit check.

One significant drawback to many online-only bank accounts is that they have no way to accept cash deposits. But GO2bank accepts cash deposits at over 90,000 Green Dot locations nationwide. However, participating retailers may charge you a fee.

If you direct deposit over $500, your monthly maintenance fee of $5.00 is waived. And, they offer a pretty sweet overdraft protection program, but it has a gotcha charge of $15 if you don’t replace the funds within 24 hours.

Account-holders will appreciate the ability to budget their money with the help of a mobile app, budgeting tools, and a savings vault. In fact, they pay 1% on all money in the saving vault up to $5,000.

Get a GO2Bank account

8. Navy Federal Credit Union
No matter your banking past, Navy Federal Credit Union offers traditional checking for all members across the US. With no review requirements of your banking history, NFCU is an excellent choice for active duty or retired US military, family members and government contractors. There are two banking choices to choose from: Active Duty Checking and Free eChecking.

Both account options come with a free NFCU debit card. There is no monthly service fee with direct deposit. Your account is protected from overdrafts with free savings transfers, a checking line of credit or an optional overdraft protection service. You also receive:

  • Free mobile deposits
  • Free bill pay
  • Free traditional name-only checks
  • Dividends credited monthly

Get an account at Navy Federal Credit Union

What Is ChexSystems?

Never heard of ChexSystems before today? Don’t worry. You’re far from alone in that. In fact, most people have no idea that the company exists unless they try to open a bank account and find out they’ve been blacklisted by ChexSystems.

Briefly, ChexSystems is a consumer reporting agency (CRA) that tracks your checking and savings account activity.

Essentially, ChexSystems gathers data from almost 90% of banks and credit unions. This data includes personal information such as name and social security on over 300 million checking and savings accounts in the United States.

ChexSystems is in the same category as the large Credit Reporting Agencies (CRAs) such as Experian, TransUnion, and Equifax and their handling of all this highly sensitive data falls under government oversight and regulation.

If your bank reports that you bounced too many checks, not paid your monthly or transaction fees, or even committed fraud, your ChexSystems profile may spell trouble.

Not only may your current bank no longer want to do business, but now every bank and credit union that subscribes to the ChexSystems database will probably deny you an account.

ChexSystems is not responsible for the decision made by banks to deny you a bank account; however, the information reported by banks and credit unions and stored by ChexSystems can result in a denial of a bank account.

The following information may be stored in your ChexSystems report:

  • Any type of fraud
  • Unpaid or paid insufficient fund items
  • Uncollected overdrafts, automatic payments the bank paid, or ATM transactions
  • Violations of any banking regulations or rules
  • Abuse of a savings account, debit card, or ATM card
  • Opening an account using incorrect information

Some No-ChexSystems banks do access other types of record-keeping companies such as Early Warning Services and Telecheck. So if you have negative marks with these companies, you might be rejected for a checking account. However, it’s been our experience that most people in ChexSystems are not in EWS or Telecheck.

>> MORE: How To Dispute Information On ChexSystems

Why You Need A Checking Account

It has been shown that having a checking account is an essential part of managing your money on a regular basis. Some studies show that people who do not have a checking account will spend up to nearly 5% of their net income on the fees that payday loan providers, prepaid card companies, and check-cashing companies require from their customers. Simply having a typical checking account may help you save thousands of dollars over your life.

Having a checking account is a fundamental way to improve your financial life. It gives you the opportunity to pay for services and goods and provides access to the latest financial technology, such as Venmo, Google Pay, Apple Pay, Android Pay, Samsung Pay, and PopMoney. When you put all these things together, you can see that acquiring a checking account makes life easier while also saving you money.

A checking account allows you to protect your money since it’s a secure and safe method of paying for items and services. It also makes it much easier to pay expenses and bills without additional fees. A checking account often has technology that makes it simple to track your spending and make adjustments to your financial habits. On top of that, you can use direct deposit with your checking account to get quick and easy access to your paycheck as soon as it is provided by your employer.

If you are listed on ChexSystems, getting a new checking account isn’t as simple as walking into any bank on the street and filling out a few papers. Many banks simply do not do business with anyone with a negative ChexSystems file.

>> More: Reasons To Have A Checking Account

The Solution: A Bank or Credit Union That Doesn’t Use ChexSystems

We’ve done all the hard work for you. We’ve already located 5 national banks that want your business. And none of them use ChexSystems to approve your checking account application. All of them have the basic benefits you need, including:

  • No minimum balance required
  • Low or no monthly fee
  • Ability to write checks
  • Online and mobile banking
  • Debit card access
  • FDIC insured accounts up to $250,000
  • Access to a large (and most times free) ATM network
  • Purchases with your bank card carry a zero liability for fraudulent transactions

While there are many banks and credit unions that don’t utilize ChexSystems, they aren’t all the same. There’s no reason to choose an account with a bank that has high fees and a wide range of restrictions. This can make having the checking account a hassle. Many people choose these accounts because they have no idea that other options are available. There are options and you can choose a bank account with all the perks that you want.

When you apply for a no-ChexSystems bank account, you can expect to provide the same information as you would for any other checking account. This includes your social security number or tax ID number. Sometimes the bank will also ask a series of questions to verify you are who you claim to be. Once satisfied, the approval rate on these accounts is enormous. It can be as high as 95%, which lets you have the freedom of enjoying all the perks that a checking account will offer you.

Differences Between Second Chance Bank Accounts and No-ChexSystems Bank Accounts

A lot of people are under the impression that banks that don’t use ChexSystems are the exact same as banks that offer second chance checking accounts. These two terms are often used to describe the same thing, but there are differences between the two that you should be aware of.

If you are listed with ChexSystems and do not have the time or ability to dispute the negative information, it’s important to select a bank that does not use ChexSystems to make decisions during the screening process for getting a checking account.

In addition, some banks will check your credit score when you apply. They may also use EWS to be sure you haven’t engaged in fraudulent activity in the past. Finding a bank that offers everything you want can be hard, but it’s possible.

When you choose a bank with second chance checking accounts, they typically do look at ChexSystems before you are approved. Some of them will also use TeleCheck and EWS. This doesn’t mean you need to be discouraged or avoid opening an account with them, though. In most cases, the bank will open a checking account for you as long as you don’t owe them any money.

Both No-ChexSystems banks and second chance checking banks typically have higher than normal approval rates. On top of that, the best-of-breed of these financial institutions provide you with the same options you would get from a traditional savings or checking account.

When you are looking for the right bank for your new checking account, there are a few things you want to see to make sure the choice you make is convenient for your lifestyle. Some of these things include access to a debit card, a low or no monthly fee, a lack of a required balance, the option to write checks, and both mobile and online banking options.

Choosing Between Prepaid Cards and Payday Loans or a No-ChexSystems Bank Account

If you care about convenience and you want to save your money for the things that matter, the best choice you can make is opening the right No-ChexSystems bank account. When you choose to visit a check-cashing business, use a prepaid debit card, or visit a payday loan location, the fees are going to be higher and the process is going to be more complicated and time-consuming.

As an example, a payday lender is going to have a variety of fees that you have to pay. Even those who make all of their payments on time will have to deal with these. Those who get behind will stack fees and can end up wasting even more money. Experts agree that these kinds of services are negative for customers and should be avoided whenever possible.

When you look at the advantages and disadvantages of the options, it’s pretty clear which solution comes out on top. Choosing to set up a No-ChexSystems bank account with an included debit card is the best choice for nearly all consumers. This option gives you consumer protections with your cards, lets you move money into your account without expensive fees, and lets you spend your money however you feel fit.

The Best Second Chance Banks by State

Most major banks don’t offer No-ChexSystems or second chance checking, but many community banks and credit unions have them under various names, such as Opportunity Checking and Fresh Start Checking.

Our editorial staff regularly updates the list of banks offering no ChexSystems second chance checking in every state. Here’s an overview of these accounts and where you can find them at branches in your area.

Additional Chime Disclaimers:  Back to Chime Review
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

1Eligibility requirements apply. Overdraft only applies to debit card purchases and cash withdrawals. Limits start at $20 and may be increased up to $200 by Chime. See chime.com/spotme.
2Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Cash deposit or other third-party fees may apply.
3Customers are limited to three $1,000 cash deposits at Walgreens each day and $10,000 each month.
4Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. See your issuing bank’s Deposit Account Agreement for full Pay Friends Transfers details.
5The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 1, 2021. No minimum balance required. Must have $0.01 in savings to earn interest.
6Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

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