15 Banks That Don’t Use ChexSystems (And Credit Unions)

Are you getting rejected when you try to open a new bank account? Your ChexSystems report might be to blame. Luckily, there are several credit unions and banks that don’t use ChexSystems.

Below, we’ll explore nine banks and six credit unions that offer accounts that don’t require a ChexSystems pull.

What Is ChexSystems?

ChexSystems is a consumer reporting agency that collects information on your banking history. Similar to credit bureaus, they compile this information into a report and generate a score.

This information is then provided to banks, credit unions, and other financial institutions when you apply for a new account. A poor banking history (overdrafts, forced closures, etc.) will limit your account options.

📖 Learn more: Heads up: If you’ve been meaning to understand the intricacies of the banking system, find out how banking works in our recent post that breaks it down clearly for you.

What Is on Your ChexSystems Report?

ChexSystems primarily gathers information on your account applications, openings, and closures. This can include negative information, such as:

• Overdrafts
• Frequent applications
• Bounced checks
• Involuntary account closure
• Suspected fraud/identity theft

The report does not include active account information or accounts in good standing that were voluntarily closed.

Why Do Banks & Credit Unions Use ChexSystems?

Just as a lender uses your credit reports to determine if you are creditworthy, banks and credit unions use your ChexSystems report to determine the risk of you overdrawing your account or writing bad checks.

When the information on your report is negative, banks and credit unions can withdraw account promotions (i.e., free $100 when you open an account), offer you a different account with higher fees, or outright reject your account application. However, there are banks that don’t use ChexSystems, offering an alternative for those with past banking issues.

Can You Fix Your ChexSystems Report?

If you have negative information reporting to ChexSystems, there are a few steps you can take to remedy this.

First, you’ll want to obtain a copy of your report and score. By law (Federal Credit Reporting Act), ChexSystems has to offer you at least one free copy of your report a year.

Next, you can dispute any inaccurate information resulting from fraud, mistaken identity, etc.

You can also pay off any outstanding charges that resulted from involuntary closures, bounced checks, etc. This won’t remove the negative information from your ChexSystems report, but the report will be updated to show the account has been paid off.

9 Banks That Don’t Use ChexSystems

Here are some major credit unions and banks that don’t use ChexSystems. Smaller local institutions are also good possibilities.

1. Capital One

Among the banks that don’t use ChexSystems, Capital One stands out by offering their no-fee 360 checking account. Instead, they will perform a soft pull of your credit and collect other personal information to determine your eligibility.

*You need to make a deposit within 60 days, or the account will be closed. 

💳 Learn more: If you’re exploring credit card options, our post gives an honest review of the Capital One Secured Credit Card, aiding in your search.

2. Chase

While Chase offers three checking accounts, only the basic account, Secure Checking, is a no-ChexSystems account. This account comes with a monthly fee and access to Chase’s resources for credit monitoring, budgeting, and bill payment.

*fee waived on new accounts for first 2 months

📖 Learn more: If managing your credit score effectively is on your agenda, one of our posts reviews the Chase Credit Journey platform, offering insights into its functionalities

3. Chime

Chime is among the banks that don’t use ChexSystems and offer second-chance bank accounts. Their no-monthly-fee checking account doesn’t require a credit check. Plus, the account comes with great savings tools like auto transfer and round-up.

4. Go2Bank

This 100% mobile bank is among the banks that don’t use ChexSystems, offering a checking account that only necessitates simple identity verification. The account comes with access to Go2Bank’s other great features, like a high-yield savings account and a no-credit-check secured credit card.

*Overdraft protection is optional

**waived with direct deposit of $5 or more

5. PNC

The Foundation Checking account offered by PNC is advertised as a solution for those working towards better finances. Unlike its other checking account offerings, this account does not use ChexSystems.

*waived if you are a PNC employee or 62+

6. Sofi

When you’re searching for banks that don’t use ChexSystems, consider opening a Sofi checking account. Not only do you automatically receive a savings account, but there’s also no ChexSystems inquiry for either.

The accounts have zero fees, and you start building your savings from day one.

7. US Bank

The checkless Safe Debit account offered by US Bank is designed for teens but also works as a second chance account. There is no ChexSystems pull.

US Bank pulls ChexSystems on its Smartly Checking, but they are reported as lenient with bad reports. So, you may qualify for this account as well.

8. Varo Bank

This 100% online bank offers some unique features, including a high-yield savings account, a credit builder card, cash advance features, and more. All these come with quick sign-up and no inquiry on your credit or ChexSystems. Varo Bank is one of the few banks that don’t use ChexSystems and also doesn’t charge a monthly fee.

9. Wells Fargo

Wells Fargo is among the banks that don’t use ChexSystems for certain account types. While they offer four different checking accounts, only the Clear Access Banking account abstains from using ChexSystems. Advertised as a great option for teens and young adults, it is also an excellent 2nd chance checking account.

*waived if you are younger than 24 or have a linked campus card

6 Credit Unions That Don’t Use ChexSystems

1. American Airlines Federal Credit Union

Membership at American Airlines Federal Credit Union is open to many airport employees, including American Airlines employees, TSA employees, family members of employees, etc.

The Ascend Checking account they offer is the only one without a ChexSystems inquiry. The account is checkless.

*waived with a direct deposit of $250 or more

2. Consumers Credit Union

This open-to-the-public credit union offers a Rewards Checking account with great features and no ChexSystems pull. Opening an account will require becoming a member, but the membership fee is reimbursable.

There are mixed reports on Consumers Credit Union pulling from ChexSystems, but they do not seem to use it for decision-making.

*based on account activity. APY starts as low as 0.01%.

3. PenFed Credit Union

Free Checking offered by PenFed is just that, a zero-fee checking account. Membership at PenFed is open to anyone, plus there is no fee to join. There is no ChexSystems check, and you get 50 free checks when you open the account.

4. Premier America Credit Union

Premier America Credit Union offers a 2nd chance checking account called Fresh Start Checking that does not pull from ChexSystems. Membership at the credit union is primarily for those located in Los Angeles, CA, or Houston, TX, but is open to everyone through membership to TOArts.

*if you don’t meet location requirements, you must join the credit union by donating to TOArts.

**fee is $10 if you have a direct deposit of $200 or more

5. Navy Federal Credit Union

Navy Federal may do a soft pull of your credit (usually TransUnion) when you apply for membership.

*$10 on Flagship checking if you don’t meet the required balance

6. Unify Financial Credit Union

The Right Start checking account offered by Unify doesn’t require a ChexSystems pull. The downside is that you can only open this account in person. Unify’s other accounts can be opened online and may or may not require a pull.

Membership at this credit union is open to anyone and free through Freinds of Hobbs.

📖 Learn more: In case you’re exploring more inclusive banking options, our post highlights the top credit unions that anyone can join, simplifying your search.

Other Options for Avoiding ChexSystems

There are banks that don’t use ChexSystems, and even if you have a less-than-stellar ChexSystems report, you can still qualify for a new checking account. You still don’t want to just start applying for any and every checking account out there, as this could negatively impact your ChexSystems report and score.

It’s better to do some research, identify an account you’ll qualify for, and apply for that one.

In addition to exploring the options we listed above, try looking for accounts labeled “second chance or “fresh start”. Also, accounts that don’t come with checks/check-writing are more likely not to use ChexSystems.

You can also look into local banks and credit unions. These smaller institutions might not use ChexSystems and could be more willing to look past a bad report.