7 Banks That Don’t Use ChexSystems: Local & Online

William Lipovsky headshot William Lipovsky
Verified & Updated Sep 17, 2019
Woman conducting a transaction at a bank that doesn't use ChexSystems

Some large U.S. banks don’t use ChexSystems to determine account approval.

While these banks may still pull your ChexSystems report, they’re typically more concerned with spotting red flags for bank fraud rather than judging minor financial infringements like bounced checks.

Other options for people with negative ChexSystems reports include “second chance” accounts or prepaid reloadable debit cards.

For more details, including information on how to request your ChexSystems report, see below.

What Is ChexSystems?

ChexSystems is one of the primary ways that banks assess the risk of letting consumers open new accounts.

Like the major credit bureaus (TransUnion, Experian, and Equifax), ChexSystems builds reports on consumers who have abused lines of credit.

Essentially, ChexSystems is a specialty consumer reporting agency that monitors the fraudulent and irresponsible use of checking and savings accounts.

Banks want new customers to have a good record of handling these accounts, and they’re unlikely to let someone open an account if that person has a history of bank fraud, bounced checks, or other banking issues.

Credit unions also use ChexSystems; for the list of credit unions that don’t use ChexSystems, see our article.

Many people are unaware of ChexSystems until they’re denied an account due to their ChexSystems report.

If a person had a checking or savings account closed for fraud or abuse in the past five years, it’s likely that their bank sent information about the account to ChexSystems.

The report also includes information about the following:

  • Any returned (bounced) check that retailers have reported receiving from that person (this information is provided to ChexSystems from Certegy Check Services)
  • Any recent inquiries for the person’s ChexSystems report
  • The number of checks the person has ordered in the past five years

Common Mistakes That Damage Your ChexSystems Report

When banks see problems on a ChexSystems report, they may refuse to open a checking or savings account for that individual.

Since flagged accounts stay on the report for five years, the best way to prevent problems when opening another bank account is to avoid getting a ChexSystems record to begin with.

ChexSystems has published a list of some common mistakes to avoid, including:

  • Bouncing checks
  • Co-signing on an account that another person uses for fraudulent or suspicious activity
  • Depleting the funds in a checking account to $0 rather than closing the account
  • Failing to report lost or stolen checks
  • Forgetting to discontinue any automatic payments before closing a checking account

Request a Copy of Your Report

For people who have been denied a new bank account or people who just want to know what might be on their ChexSystems report, ChexSystems will provide a copy of the report to consumers who submit a request online.

Once ChexSystems has processed the request, the consumer disclosure report will be sent through the United States Postal Service, normally within five business days.

How to Submit a Dispute

After receiving the report, it’s important to review it for accuracy to rule out the possibility of identity theft or incorrect information.

If identity theft is suspected, it’s possible to place a freeze on a consumer report.

If any errors are found, each individual has the right to dispute his or her record. It’s possible to file a dispute either with the institution that reported the incorrect information or with ChexSystems.

A ChexSystems investigation can take up to 30 days, with the possibility of a 15-day extension if any additional information is submitted during the process.

An error on your ChexSystems report could be an indication of identity theft, so if you see something that shouldn’t be there, take it seriously and address it as soon as possible to protect yourself from further damage to your credit history.

Banks That Don’t Rely on ChexSystems

Most banks use ChexSystems to some degree, and bank policies can vary by branch. The best way to find out if your local bank uses ChexSystems is to call or go to a branch in person and ask.

Most banks aren’t willing to share the details of exactly how they determine approvals. In the course of our research, we found many were unwilling or unable to answer questions about their specific use of ChexSystems due to security concerns.

We were, however, able to find several instances of banks publicly announcing that they don’t use ChexSystems or that they’ll no longer use it in specific cases, such as for judging minor infringements or assessing creditworthiness.

In many cases, a bank’s primary concern when pulling a ChexSystems report is identifying red flags for fraud.

Below, we’ve compiled the list of banks that either don’t use ChexSystems at all or that don’t turn down customers for minor negative marks on their ChexSystems report.

Note that banks are regularly changing and updating their policies for reviewing customers’ financial histories. A bank with fairly lenient approval criteria today may not be so flexible months or years from now.

Axos logo

Axos Bank Essential Checking

Axos Bank doesn’t pull a Chexsystems report to determine approval for its Essential Checking account. The account is virtually fee-free and also features early direct deposit.

Note: Axos operates mostly online, but has three physical branches

Capital One logo

Capital One 360 Checking

Capital One does pull ChexSystems reports, though it tends not to hold minor infringements against applicants and considers other factors when approving or denying an account. Applicants with a history of banking fraud, however, will likely be refused.

Note: There are no branches for this online account, but the CapitalOne ATM locator will show all fee-free ATMs nearby

Citibank logo

Citibank Basic Banking Package

Much like Capital One, Citibank primarily uses ChexSystems to look for repeated incidences of fraud, not small one-time offenses like bounced checks.

  • Minimum opening deposit: $0
  • Monthly account service fee: $12; avoidable by maintaining an average monthly balance of at least $1,500 in eligible linked accounts, making one qualifying direct deposit and one qualifying bill payment per statement, or by being 62 years or older
  • Find out more or apply online

Frost Bank logo

Frost Bank (Checking and Savings)

Frost Bank is often willing to work with customers who have poor ChexSystems histories. Frost may ask these customers to provide a letter from the institution that reported them confirming they do not owe it any money.

  • Minimum opening deposit: $25 for checking; $50 for savings
  • Monthly account service fee: $8 for checking and $3.50 for savings; can be waived with a minimum monthly deposit, daily balance, or combined average balance, with the amount varying by account type
  • Find out more or apply online

Renasant Bank logo

Renasant Checking

Renasant Bank is not known to pull ChexSystems reports.

USAA logo

USAA Bank Free Checking

USAA Bank may pull your ChexSystems report, but it’s still typically willing to work with those who have negative marks. You must be affiliated with the military to open an account with USAA.

Other Options for People With a ChexSystems Record

A few of the larger banks and some smaller regional banks will allow a consumer with a bad ChexSystems record to open what’s called a “second chance” bank account.

These accounts often have stricter limitations and higher fees, but since they’re specifically designed for people with a bad banking history, it’s easier to be approved.

Often, after a 12-month period, customers may request to upgrade to a standard account.

Another option is to apply for a prepaid reloadable debit card. With a prepaid debit card, you can receive direct deposits and shop online without the risk of overdrawing your account. Some even offer consumer protection and FDIC coverage, just like standard bank accounts.

But, unlike traditional checking accounts, there are no paper checks, and check cashing fees may apply.

Banks That Offer Second Chance Accounts

Axiom Bank Opportunity Checking

  • Minimum opening deposit: $25
  • Monthly account service fee: $12.95; reduced to $8.95 with any direct deposit
  • Find a branch

Bank of Arkansas Opportunity Checking

  • Minimum opening deposit: $50
  • Monthly account service fee: $10; $5 with a qualifying direct deposit of regular monthly income of at least $300 per statement
  • Find out more or apply online

CenterState Fresh Start Checking

Peoples Cash Solutions Second Chance Checking

Wells Fargo Opportunity Checking and Opportunity Savings Accounts

  • Minimum opening deposit: $25
  • Monthly account service fee: $10; avoidable with a daily balance of $1,500, debit card usage of at least 10 times a month, or $500 in direct deposits per month
  • Make an appointment online

Woodforest National Bank Second Chance Checking

  • Minimum opening deposit: $25 plus $9 account set-up fee
  • Monthly Account Service Fee: $11.95 plus $3 for optional paper statements
  • Find a branch

Banks That Offer Prepaid Reloadable Debit Cards

BB&T Prepaid Debit Card

  • Minimum opening deposit: None listed
  • Monthly account service fee: $5; reduced to $3 in months where at least $1,000 is deposited/reloaded
  • Reload fee: None listed
  • Find out more or apply online

Commerce Bank mySpending Card

Regions Now Card Prepaid Visa

  • Minimum opening deposit: None listed
  • Monthly account service fee: $5; waived for any monthly statement period in which 7 purchases post to your card
  • Reload fee: $0
  • Find out more or apply online

Banks That Rely on ChexSystems

As stated above, most banks do use ChexSystems, including nearly all of the large banks in the United States.

However, not all banks (and not even all branches of the same bank) use information from ChexSystems the same way.

The following banks are known to do a more in-depth look at your ChexSystems report, but it’s still best to contact the customer service department or your local branch to find out if there may be options available to you.

  • Ally Bank
  • Bank of America
  • Chase
  • CIT Bank
  • HSBC
  • PNC
  • Regions Bank
  • Citizens Bank
  • Discover
  • HomeStreet Bank
  • Nationwide Bank
  • NorthOne Business Bank
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One thought on “7 Banks That Don’t Use ChexSystems: Local & Online” - Comments are closed.

  • A Gannon
    | 6 years ago

    Citizens Bank ABSOLUTELY does a report. I worked for them and they require their employees to complete this before opening an account. There are possibly some employees that don’t run the report just to make their quota amount of new accounts, but most will follow the company rules.

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