10 Banks That Don’t Use ChexSystems

Explore second-chance banking with these non-ChexSystems banks.

If you’ve had past financial mistakes come back to bite you and been blacklisted by ChexSystems, you might also have been blocked from opening a bank account. You still have options, however, as not all banks use ChexSystems.

Some banks choose to ignore a bad credit report and give customers a second chance at maintaining a checking account. Non-ChexSystems checking accounts typically come with fees, but it’s the perfect way to get back in the game if you’ve had financial problems in the past. GOBankingRates has identified a list of banks that don’t solely rely on ChexSystems to screen applicants. Bank accounts for bad credit do exist, you just need to know where to find the best second-chance banking accounts.

What Is ChexSystems?

ChexSystems, Inc. is a reporting agency that collects data from banks and credit unions on consumers’ checking and savings account activity. The company uses this information to create tools — including consumer reports — that financial institutions can use to screen potential customers.

The agency helps banks and credit unions screen potentially risky applicants by issuing reports that detail previous financial issues like overdrawn and closed accounts and unpaid debt. Once you’ve been flagged by ChexSystems, you might have a difficult time obtaining a bank account.

Banks That Do Not Use ChexSystems

If you have a few dings on your banking history, you’re in luck. Even though banks run credit checks on applicants, some banks don’t use ChexSystems and some will access the reports but not make their decisions based solely on the information.

Here are 10 banks that don’t use ChexSystems:

1. TD Ameritrade

TD Ameritrade doesn’t use ChexSystems to screen applicants, but because it’s a brokerage, you’ll need to open a brokerage account before you can apply for a checking account. Yes, you might actually be able to open a bank account online at TD Ameritrade with no deposit minimum and bad credit.

TD Ameritrade makes customer checking decisions on a case-by-case basis. Here are some of the perks of this account:

  • No minimum deposit
  • No monthly fees
  • Free debit card
  • Ability to pay bills online

2. Axiom Bank

Everyone deserves a second chance. That’s why Axiom offers second-chance banking and might overlook your report to provide you with a checking account. Headquartered in Central Florida, this community bank offers its Opportunity Checking account to those who have made previous financial mistakes.

The account features:

  • No minimum balance requirement
  • Debit card opportunity, subject to approval
  • $10 monthly service fee
  • $25 minimum opening deposit

3. Woodforest National Bank

Woodforest National Bank, a regional financial institution, offers its Second Chance Checking account to customers with a history of banking problems. Here are the details:

  • $25 minimum opening deposit
  • $9 set-up fee
  • Monthly fee of $9.95 with direct deposit, $11.95 without
  • Located in select states

Don’t Miss: 6 Reasons Ignoring Your Bank Statement Is a Huge Mistake

4. United Bank

A bad ChexSystems report is not a problem with United Bank, but the institution has limited locations on the East Coast. United Bank’s United Free Checking account includes:

  • $0 minimum opening deposit
  • Free United Visa Check Card
  • No monthly fees
  • No minimum balance requirement
  • Online bill pay
  • Mobile banking with check deposit

5. Southwest Financial Federal Credit Union

The Texas-based Southwest Financial Federal Credit Union offers a checkless checking account, which might be an option if you have had trouble qualifying for a bank account. The account includes:

  • Free debit card
  • No monthly service fees
  • Online bill pay
  • Mobile banking
  • Overdraft protection with a savings account

Related: What’s the Difference Between a Credit Union and a Federal Credit Union?

6. Green Dot Bank

Green Dot Bank is an option if you’re looking for a checking account for bad credit. Green Dot’s reloadable, prepaid debit card and GoBank checking account do not use ChexSystems to screen customers.

“Neither a ChexSystems score nor credit bureau rating is used as the basis for determining customer eligibility,” said Lewis Goodwin, president of Green Dot Bank. Instead, Green Dot uses risk-modeling techniques that enable almost anyone above 18 years of age and who passes ID verification to open an account. Prepaid debit card details include:

  • Store purchase fees of up to $1.95
  • Free online purchases
  •  $7.95 monthly fee (unless you load $1,000 or more on the card during the previous monthly cycle)
  • Card reload fee of up to $4.95

7. Wells Fargo Opportunity Checking

Wells Fargo offers its Second Chance checking to customers with negative ChexSystems reports. You’ll have to open the account at a local branch, but it includes everything you expect from a basic checking account, from online banking to easy bill pay. Other features include:

  • $10 monthly fee (unless you make 10 debit card purchases, maintain a $1,500 daily balance or post a total of $500 in direct deposits per statement cycle)
  • $25 minimum opening deposit
  • Online banking
  • Easy bill pay

8. PNC Foundation Checking

Another big bank that offers second-chance checking to customers with a bad banking report is PNC. To get started with PNC’s Foundation Checking, you’ll have to open an account in person after taking the Foundations of Money Management Course online. The account comes with:

  • $7 monthly service charge
  • $25 minimum opening deposit
  • Visa debit card
  • Unlimited check writing
  • Online and telephone banking
  • Eligibility to graduate to a regular account after meeting requirements

9. Capital One 360 Checking

Although the Capital One 360 account does consider your ChexSystems report, Capital One doesn’t base its approval on ChexSystems alone, according to AAA CreditGuide. Chances are, if you have a good credit score and have not committed bank fraud, you’ll be golden. Here’s what your account will come with:

  • No fees
  • No minimums
  • Free MasterCard debit card

10. BBVA Compass

BBVA is known for approving individuals with past ChexSystems issues for its free checking account, according to eCHECKING. You can apply for this online checking account with no ChexSystems. Here are the details:

  • Free checking account
  • $25 minimum opening deposit
  • $15 quarterly service charge unless you maintain a daily $500 balance or make a recurring monthly deposit of $25 or more

Next Up: What’s the Difference Between TeleCheck, ChexSystems and EWS?