Non ChexSystems Banks (Updated 2019)

If you apply for a checking account at a bank and your request is denied, then you have probably been blacklisted on the ChexSystems national consumer report database. Do not take this personally because 7% of American households are in the same boat you are in. However, the real problem is that you applied for a checking account at a bank which uses ChexSystems to screen their new applicants. If you already know that you are blacklisted, you need to avoid all banks which use ChexSystems and find one that does not use it.

Believe it or not, about 20% of all national and local banks in towns and cities throughout the country do not use ChexSystems. You just have to know which ones they are. Once you find a Non-ChexSystems Bank, you won’t have the stress of wondering if your past mistakes with previous bank accounts will prevent you from ever opening another one again.

What You Need To Know About ChexSystems

Many consumers are familiar with credit bureaus and the basics of how they work in the United States. However, not as many know what ChexSystems is and how it works. About 80% of banks in the United States use ChexSystems, a consumer reporting agency (CRA) that tracks your checking and savings accounts at banks. ChexSystems monitors and inspects accounts for abuse to ensure good consumer activity, much like how credit reporting agencies report and monitor credit cards, loans, and other liabilities.

ChexSystems does not affect your credit report; however, it does impact your ability to take out any new checking or savings accounts. Institutions that use ChexSystems can all see the same information, and we’ll have more on that later. While it is important to have an excellent track record with ChexSystems, if you have had some hiccups along the way with your bank accounts, have no fear! We will review options for you.

There are similar Consumer Reporting Agencies to ChexSystems. The first is Telecheck. Basically, as the name might imply, Telecheck is a check verification system. Telecheck receives payments from financial institutions in order to use their system, and, in return, Telecheck guarantees the checks they verify.

The Early Warning System (EWS) is the newest system of these three. It was created by Chase Bank, Wachovia, Bank of America, BB&T, and Wells Fargo. Typically, bounced checks and overdrawn accounts are reported to the EWS. This isn’t utilized by many companies at this time, but as per the
system creators’ names, large institutions are using it.

How ChexSystems Works

There are two main pieces of information that ChexSystems provides financial institutions: risk score and the actual report or “consumer disclosure”. Let’s explore the two components.

  • Score – ChexSystems takes a full picture of all marks, and issues a score between 100 to 899 (more on this below).
  • Report – This report will show unpaid fees mainly from overdrafts, checks bounced, and possible fraud. Credit inquiries and check orders can also be seen here (more on this below).

What Data is Inside ChexSystems?

Keep in mind that ChexSystems does not report to credit bureaus; they only keep tabs on any negative actions on your part.  It doesn’t operate like the credit bureaus, which report the “good” deeds you are doing with your banking accounts. Instead, it solely reports the “bad.”  The following is a summary of what negative information could wind up in your ChexSystems report:

  • Bounced checks or overdrafts
  • Unpaid negative balances
  • Involuntary account closure (e.g., bank closes your account, usually due to fraud or bad checks)
  • Suspected fraud or identity theft (e.g., check fraud, altering, or falsifying information)
  • Account, debit, or ATM abuse (e.g., bending any rules, trying to circumvent procedures)
  • Outstanding checks in SCAN database or returned checks (e.g., checks being handled by a collection agency or are fraudulent)

All the above negative marks are typically deleted after five years unless there is some sort of error that will provide the opportunity for you to create a dispute.  Obviously, if you have any of the aforementioned bad marks, chances are you will know about them and it won’t be a surprise when sitting in the lobby waiting to open an account.  Just like credit reports, errors do happen, so any of these could pop up for anyone.

The following marks are primarily for monitoring and are not necessarily negative in nature. However, when abused, they can possibly be negative:

  • Lost checks and debit cards
  • Check ordering last three years
  • Tax ID number (SSN) or driver’s license verification
  • Amount of bank accounts opened/applied in the last 90 days

These items above are typically removed from the report after five years.  Inquiries into ChexSystems are removed after 90 days, or even three to five years.  Inquiries may be by the consumer, other banks, employers, IRS, or any other government or permitted parties.

ChexSystems Scores

Everyone is familiar with the FICO score that credit bureaus use. ChexSystems uses a similar consumer score called the QualiFile consumer score. The range for this scoring system is from 100 to 899. Much like credit scores, the higher the number, the better. ChexSystems isn’t utilized solely for loans and credit cards; some banks use it as a deciding factor for checking and savings accounts. Typically, smaller banks and credit unions may utilize ChexSystems to decide on one’s credit.

Options When Declined for an Account

So, you are declined by a bank while trying to open an account, and you’re now wondering what you can do. Many people who approach a few banking institutions and are declined believe that no bank will take them and that there are no solutions. The problem with this logic is that the few banks they visited perhaps all use ChexSystems and examine the same data.

In order to get approved, you will have to look into your actual report and see what you may be able to remove. If there is nothing that can be removed, contact other banks that don’t use ChexSystems. In addition to Non-ChexSystems Banks, you can also visit banks that offer Second Chance Accounts, or prepaid options. We’ll have more on this later, but let’s start with removing negative items from your ChexSystems report.

Removing Items from ChexSystems

In the event you find yourself declined for an account, it is a good idea to request a copy of your ChexSystems report.  You can obtain a copy once every 12 months.  In the event you were declined and find out there is incorrect information on your report, you may be able to remove it.  You can do so in several ways, and can start the process by obtaining a copy of the report.

  • Call ChexSystems at 1-800-428-9623
  • Visit their website at and fill out this form.
  • You can also print that form and mail it to:
    • ChexSystems Inc.
    • Attn:  Consumer Relations
    • 7805 Hudson Rd, Suite 100
    • Woodbury, MN  55125

Next, you need to look for any errors on the report that you believe are inaccurate.  Gather any documents, receipts, bank statements, or other documentation that indicate the correct information.  Options to submit your dispute include:

  • Online by going to their Dispute Area
  • By mail via the same address listed above for obtaining the report
  • On the phone by calling 1-800-513-7125

If everything is accurate on your ChexSystems report, then much like working with creditors with a credit report, you could talk to any banking institution or collection agency to remove marks or “clear” them from your report.  They would agree to this in exchange for paying any debts owed.

The only other option if there are no errors and nothing more to pay would be to wait the typical time required for these various infractions to leave your report.  In the meantime, you can look into alternative options with other banks.  Let’s explore that next.

Difference Between Non-ChexSystems & Second Chance Accounts

Below are options and sources for obtaining a bank account after you have been declined at a bank. The options will be Non-ChexSystems and Second Choice Accounts. It is important to understand the differences we are explaining here. Non-ChexSystems Banks offer their accounts to anyone. This simply means that if they have an account called “ABC Checking” for instance, any consumer has the ability to enroll since they don’t use ChexSystems. As a good example, TD Bank doesn’t use ChexSystems, so this means that if you have bad marks on your report, you would still have access to their TD Simple Checking, as would anyone with no negative marks. This also means that your account would have no limitations, just like everyone else’s accounts.

Second Chance Accounts are intended for people with past banking problems. Credit card companies do this as well. Capital One, for example, has secured credit cards for people with less than perfect credit, and they also offer very high-end rewards credit cards for those with perfect credit.

Second Chance Accounts may be limited with check writing, ATM deposits, and other features. The bank will basically examine bank account features that typically present the greatest risk for fraud, and will remove such features on a Second Chance Account. Why would someone want a bank account with limitations? The basics will still be there, such as having a checking account for direct deposit, a debit card, and other functionality depending on the Bank.

Banks That Don’t Use ChexSystems (Updated 2019)

Not all banks use ChexSystems when opening accounts for consumers.  Some banks may use a similar program, or may use only their internal system to see if you have any negative history with their own institution.  If you find yourself on the receiving end of a decline when registering a new checking or savings account, you may want to consider any of the following banks that don’t use ChexSystems.

  • BBVA – While BBVA doesn’t use ChexSystems, they do use EWS. BBVA Online Checking is very good, which is why it made the list.
    • Open with $25 minimum deposit
    • No monthly Service Charge
    • No fees at BBVA USA and AllPoint® ATMs
    • Online Bill Pay and Mobile Deposit®
    • Cash back rewards
    • Residents of TX, CA, CO, AZ, NM, AL, and FL are eligible for BBVA Free Checking
  • TD Bank – TD Bank doesn’t use ChexSystems when opening accounts, making TD one of the most popular banks. They are also a big name in the U.S. and Canada. Their most basic checking account is their TD Simple Checking, which offers:
    • No minimum daily balance
    • A low $5.99 monthly fee that can be waived with a $100 balance
  • US Bank – US Bank is a great option for those looking for simple solutions from a reputable national bank. Their “Easy Checking” has some good features worth noting:
    • No monthly fee if your balance is $1,500, or if direct deposits each month total over $1,000 (otherwise a $6.95 monthly cost)
    • Debit card is granted, and free ATM withdrawals at US Bank ATMs
    • Mobile check deposit
    • Online bill pay and other online banking features
  • Navy Federal Credit Union – If you, your family, or extended family are active duty military or veterans, then Navy Federal Credit Union is for you. Here are some of their features on their “Everyday Checking” option:
    • No minimum deposit
    • No minimum balance requirement
    • No monthly maintenance fee
    • Debit card and free use of NFCU ATMs, along with Co-Op Network ATMs
    • Checks and online features
    • Dividends
  • Renasant Bank – If you live in the Southeast states (e.g., Mississippi, Tennessee, Alabama, Georgia, and Florida), this bank could be for you.
    • Sign up for eStatements and they waive monthly fees
    • Check writing included
    • Debit card
    • Online banking including bill pay
  • Capital One – Capital One made this list even though they do look at ChexSystems. However, they don’t decline consumers based on ChexSystems unless there is a history of fraud. So, if you have a few bad marks on your report, it may be worth checking with Capital One, a sizable national bank.  Their No-Fee 360 checking would be a great option.
    • No fees
    • $0 to open an account
    • No minimum balance
    • Online banking and bill pay
    • Debit card with free access to Capital One and Allpoint ATMs

Compare the monthly Service Charge fees

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Start Banking
BBVA Online Checking
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Open an account on BBVA's
secure website
Wells Fargo Everyday Checking+
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Regions LifeGreen® Checking+
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Bank of America Core Checking®+
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Chase Total Checking
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Banks That Offer Second Chance Accounts

  • Wells Fargo – As one of the biggest banks in the world, Wells Fargo offers Second Chance Accounts. The name of the account is their Opportunity Checking Account.  This is an excellent account that doesn’t have many limitations.
    • $25 initial deposit to open account
    • No monthly fee if you maintain a $1,500 balance, or if direct deposits add up to $500 or more monthly. Ten or more debit card transactions can get the monthly fee waived.
    • Online and mobile banking included
    • Check writing
    • Online bill pay
  • Woodforest National Bank – With over 700 branches in 17 states, Woodforest offers a Second Chance Account. States include Alabama, Georgia, Illinois, Indiana, Kentucky, New York, North Carolina, South Carolina, Pennsylvania, Texas, and more.
    • $25 minimum deposit and $9 setup fee
    • Monthly maintenance fee $9.95 with direct deposit
    • Free withdrawals at Woodforest ATMs
  • PNC Bank – For those who wish to have a Second Chance Account with a big bank, PNC fits the bill. The account is called their Foundation Checking.  A financial course they provide is needed for this account.
    • No minimum balance requirement
    • Within 6-18 months, if you are in good standing, the account can be converted to a regular checking account.
  • First National Bank – Second Chance accounts offered by First National Bank are called the Renew Checking Account. Here are some features.
    • No monthly minimum balance
    • $25 minimum deposit to open account
    • $15 one-time set-up fee
    • $9.95 monthly fee, $7.95 with direct deposit
    • Free online and mobile banking, free bill pay
    • Upgrade to regular account after 12 months
  • Radius Bank – Essential Checking is the name of the Second Chance Checking offered at Radius Bank.
    • Free online and mobile banking including mobile deposit
    • $10 minimum opening deposit
    • $9 monthly maintenance charge
  • BBVA – BBVA encourages you to apply for one of their regular accounts, but if you are declined, they do offer second chance banking.
    • Open with $25 minimum deposit
    • No monthly Service Charge
    • No fees at BBVA USA and AllPoint® ATMs
    • Online Bill Pay and Mobile Deposit®
    • Cash back rewards

Other Banking Options

Now that we have reviewed several standard checking account options, I would like to review some other options aside from the traditional checking account route. We will explore prepaid cards and savings accounts.

Basics Of Prepaid Cards

What is a prepaid card anyway?  A prepaid card is an alternative to a typical debit card from a checking account.  A prepaid card allows you to spend money that you load onto a card.  The benefit to this would be the ability to swipe a card at any merchant online or offline that accepts Visa or Mastercard.  As an example, if you don’t have the ability to get a checking account, or don’t want a checking account, you can simply put money on your prepaid card, and spend that balance as you wish.

For the person who wishes to have no account at the bank, and perhaps doesn’t have enough credit to acquire a credit card, prepaid options can be a viable choice for people who love to operate with cash.  Below are some providers and options for prepaid cards.

  • American Express – Serve and Serve Cash Back are two options at American Express for prepaid cards. Serve is very “reload” friendly, meaning there are no fees to add funds to the card.  Their reload network also has over 45,000 locations, which include CVS Pharmacy, Dollar General, Family Dollar, Walmart, Seven Eleven, and Rite Aid.  Serve Cash Back offers cash back based on your spendings.
    • Purchased free online or $3.95 in person
    • $4.95 monthly fee
    • Free ATM withdrawals at MoneyPass, otherwise $2.50 ATM fee
  • NetSpend Prepaid – This prepaid card is best for direct deposit. Netspend boasts its feature of getting paid two days faster with direct deposit.  The card also allows you to add funds to it in addition to receiving direct deposits.
    • Free mobile app
    • No monthly fee, with $1 fee for each signature transaction and $2 fee for each PIN transaction.
    • Direct deposit of $500 or more, you pay $5 per month and all transactions are included
  • Chase – The Chase Liquid prepaid is a great option that is also FDIC-insured and offered in any state where Chase Bank is located. You must visit a branch in order to obtain the card.
    • No fee when using a Chase ATM to load or withdraw
    • $4.95 monthly fee, which can be waived when linked to a Chase Checking account
  • Walmart – The good thing about using MoneyCard by Walmart is that Walmart has locations everywhere. That’s not all, for MoneyCard offers 3% cash back and comes with free direct deposit and mobile check deposit.
    • $5 monthly fee waived if $1,000 was loaded during the previous month
    • Reload fees are up to $4.95
    • ATM fees are $2.50 per transaction
  • FamZoo – Teaching your kids how to manage money, or just giving them the luxury of having their own card, can be fun. You can transfer money between your own FamZoo prepaid cards and those you get for your children.
    • Monthly subscription is just $5.99 per family
    • No reload fees for direct deposit or cash deposits

Protecting Your Banking Record

Due to systems like ChexSystems, it is very important to protect your banking reputation.  Ensure that you are doing everything you can to keep negative marks off your ChexSystems reports.  Here are some measures you can take.

Pay all overdraft amounts and negative balances.  Yes, things do occasionally happen and accounts get overdrawn.  How you react to that will matter.  Some people will just walk away from that account, go to a new bank, and open a new account; however, they will find out that the same $47 charge is still hanging over them.

ATM manipulation is another major problem that can harm your ChexSystems reputation.  Don’t try to circumvent any rules that the ATM may have (e.g., deposit or withdrawal limits, manipulating check or cash deposits, etc.).  Again, innocent mistakes happen, and if that is the case, make sure you communicate this with the bank.  Don’t purposely try to manipulate any of the ATM features.

Look into getting an identity protection program in order to protect against fraud.  Many times you might wind up having negative remarks in ChexSystems because someone else attempts to conduct fraudulent activities through identity theft.  The best way to prevent this is to closely monitor your activity and to look into any identity theft program, such as LifeLock.  Most banking institutions offer their own version or discounts for such programs.


As you have been able to see, the banking industry is connected through the reporting of consumer activity. It is thus very important to protect your banking record as discussed above. However, if you do find yourself in a bind, know that there are options. About 80% of consumers in the United States typically deal with some of these issues every year. When opening checking or savings accounts, it is best to visit a branch, where available; however, some banks may offer alternative enrollment processes either online or via phone. If you are declined, as we have discussed above, request a copy of your report, remove any marks you can, and look for alternative accounts or institutions that either issue Second Chance Accounts or don’t use ChexSystems.

Do not ever let past banking problems keep you from opening a checking account again. A bad consumer report in ChexSystem no longer has to stop you either. Follow this guide, and you won’t skip a beat with your banking needs.


15 thoughts on “Non ChexSystems Banks”

  1. When I applied for a checking account at my local bank, they denied my request because of a negative report that they received about me from ChexSystems. Apparently, the report showed that I never paid a $5 service fee on another checking account that I closed a long time ago. When I called my previous bank to inquire about it, their records showed the fee was paid. So, I called ChexSystems to dispute their report and provided them with proof that the fee was paid. After a couple of weeks, my ChexSystems report was updated with the correct information.

  2. I’ve had a lot of problems with my past bank accounts when it came to overdraft fees. For years, this prevented me from being able to open any new savings or checking accounts. My ChexSystems report would always be the thing that stopped a bank from approving my new account application. Fortunately, I discovered that the TD Bank in my town does not use ChexSystems reports. Now I have a new basic checking account with no minimum balance requirement.

  3. When my identity was stolen a few years ago, I had to freeze all my bank accounts as well as my credit profiles with the three main credit bureaus. Unfortunately, the fraudsters had already taken money from my checking account, causing it to go below the minimum balance required. By the time I found out about it, the bank fees added up to $250. I thought those fees would be taken care of after reporting the fraud to the bank, but it still showed up on my ChexSystems report as unpaid. Now I cannot open any new bank accounts.

    1. Sorry to hear about your dilemma. Did you call your bank and dispute those fees? Each bank has their own policies about how to handle fraudulent activities. Sometimes they don’t always reimburse you for the fees incurred because of the fraud. The first thing you should do is clear this matter up with your bank, even if it means paying back those fees. The next thing you should do is file a dispute with ChexSystems and let them know the fees have been paid or waived. Give them documentation to prove this. That should clear up this matter.

  4. I didn’t even know what ChexSystems was until I tried to open a savings account. The bank told me that my ChexSystems report showed fraudulent activity had taken place on my last debit card. I explained to them it was a misunderstanding because I had used that card in a different country and it got automatically flagged as being suspicious. I thought I cleared this situation up with my bank but apparently, ChexSystems never got the update. When I tried to dispute the report online, I never heard back from them.

    1. Sorry to hear about this. ChexSystems does have a reputation for being slow when it comes to updating reports on their own. It is possible that your bank never notified ChexSystems about the update. That is why it is important to check your ChexSystems report after 12 months to make sure these problems are not present. As for the dispute, you should call ChexSystems and ask to receive a status update on your claim.

  5. The customer service quality at ChexSystems is anything but great. I tried to call them up to file a dispute over an inaccuracy on my report. The representative said they would submit my complaint to the appropriate department and that I would hear back from them within a few weeks. This never happened, and I still have the inaccurate information on my report. Until it is resolved, I cannot even open a checking account.

    1. I am very sorry to hear about your unfortunate experience with ChexSystems. If they have not contacted you after a few weeks, then I suggest that you call them and request an update on your dispute situation. Meanwhile, you can always open a second-chance account or Non-ChexSystems checking account if you need a bank account right away.

  6. I desperately wanted to open a new checking account but did not have any luck. All the banks in my town use the ChexSystems for background verification. Since I’ve had some discrepancies on my past bank accounts, there were no banks that would approve my application for a new account. But then, I discovered second-chance checking accounts which are specifically designed for people like me with a bad ChexSystems report. Sure, there are limitations on these second chance accounts, but at least it gives me the chance to rebuild my reputation with ChexSystems.

    1. I’m glad to hear things are working out with your second chance account. However, ChexSystems will only remove negative remarks from your report if they are wrong or if it has been 5 years since they were made. You could try calling your bank or credit agency to clear up those issues too. If this route proves to be successful for you, contact ChexSystems and give them the documentation to support the recent updates that were made by these financial institutions. Otherwise, you’ll just have to wait for those 5 years to expire.

  7. I was so worried that Capital One would reject my checking account application. After reviewing my ChexSystems report, it didn’t seem like any bank would approve me. Apparently, Capital One doesn’t hold past banking mistakes against new applicants. They just wanted to see my ChexSystems report to make sure there was no fraudulent activity in any of my past accounts. Since there wasn’t, I was able to get approved for that new checking account right away. The best part is that the account has no fees, no minimum balance, and didn’t require any money to open it.

  8. I have a habit of keeping all my bank statements and receipts. This came in handy after I requested my ChexSystems report and noticed an error on it. I just provided ChexSystems with the documentation I needed to prove it was an error. Within a month, they updated my report with the correction information. I then sent the report to all three credit bureaus so that the errors on my credit reports can be updated too. I am still waiting to hear from them on the status of this.

  9. I am very happy with my Navy Federal Credit Union account. Before I joined the service, I had a lot of problems with my personal checking account. I never thought I’d be able to get another checking account again. My ChexSystems report looks like a nightmare. Little did I know at the time that the Navy Federal Credit Union does not even look at ChexSystems reports. That’s good because this new account has no minimum balance and the ATM card is 100% free to use with no fees.

  10. I was surprised to learn that my ChexSystems score was 600. This was supposedly due to an overdraft fee that I incurred 1 time over 4 years ago. I had already paid that fee within months after incurring it too. However, it still did its damage to my ChexSystems report and now I need to wait at least another year for that one mistake to be deleted from my report.

    1. Sometimes all it takes is one past mistake to cause a lot of damage to a ChexSystems score. Like you have calculated, mistakes like these usually get deleted after 5 years. But don’t let this stop you from opening a new bank account. Assuming you had no other problems with your past banking, you should be able to open a free checking account very easily. The worst-case scenario is that you open a second-chance account to restore your banking reputation.

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