If you have been denied a checking or savings account, ChexSystems is likely a familiar name to you. Unfortunately, being in ChexSystems likely means you have a tarnished banking history.
However, there are still options available through credit unions that do not use ChexSystems. These bank accounts typically offer the same features that you would get with any other bank account. Among these features are no overdraft fees, a debit card, and a mobile app with mobile check deposit capabilities.
13 Credit Unions That Don’t Use ChexSystems
Despite a negative banking record, you can still secure a bank account through a credit union. Here are the best credit unions that don’t use ChexSystems.
1. Consumers Credit Union
Consumers Credit Union is open to anyone nationwide, with no geographic restrictions for membership.
2. Connexus Credit Union
Connexus Credit Union is a nationwide credit union that makes its accounts available to members across the country.
Membership can be established online, and eligibility is open to anyone who joins through select partner organizations.
The Xtraordinary Checking account is their most popular option, offering up to 5.00% APY on balances up to $25,000 when requirements are met.
To qualify, members need to make at least 15 debit card purchases each month and receive $500 or more in direct deposits or ACH credits.
This account also comes with no monthly fees, ATM surcharge rebates of up to $15 per month, and access to thousands of fee-free ATMs through the Co-op and MoneyPass networks.
3. PenFed Credit Union
PenFed Credit Union is one of the largest credit unions in the United States, with membership open nationwide. Anyone can join by meeting simple eligibility requirements, and accounts can be opened quickly online.
Members can choose between the Access America Checking account and Free Checking.
Access America Checking offers competitive rates and the ability to earn higher returns with direct deposit, while Free Checking provides everyday banking with no minimum balance and no monthly maintenance fees.
Both options include a Visa debit card with digital wallet compatibility, contactless payment, and cell phone protection.
Members also benefit from more than 85,000 fee-free ATMs across the country, early access to paychecks with direct deposit, and the ability to deposit cash at major retailers through the PenFed mobile app.
4. Navy Federal Credit Union
Navy Federal Credit Union (NFCU), established in 1933, is a credit union dedicated to serving active-duty military personnel, veterans, and their families.
5. America First Credit Union
America First Credit Union is headquartered in Utah and primarily serves members across Utah, Arizona, Nevada, and Idaho.
6. American Airlines Credit Union
American Airlines Credit Union (AACU) was founded in 1936 by American Airlines employees and has since grown into a nationwide credit union with billions in assets under management.
7. Hope Credit Union
Hope Credit Union serves communities across Tennessee, Mississippi, Louisiana, Arkansas, and Alabama, with nearly 30 branch locations and access to thousands of shared branches nationwide.
8. Credit Union One
Credit Union One is based in Michigan and operates nearly 20 branches across the state, with additional access to thousands of CO-OP network locations.
9. Southwest Financial Federal Credit Union
Southwest Financial Federal Credit Union is based in Dallas but offers 100% virtual banking, allowing anyone in the United States to join and manage their accounts online.
10. Ashland Credit Union
Ashland Credit Union is headquartered in Kentucky with several branches across the state, as well as one location in Minnesota.
11. Delta Community Credit Union
Delta Community Credit Union is a credit union headquartered in Georgia, with branch locations in Georgia, Kentucky, Texas, and Utah.
12. Tower Federal Credit Union
Tower Federal Credit Union offers a range of banking options through its 17 branches located throughout Maryland.
13. Texas Trust Credit Union
Texas Trust Credit Union is a prominent financial institution in Texas, with 22 branches spread across the state.
Alternatives to Credit Unions That Don’t Use ChexSystems
There are several alternatives to credit unions that don’t use ChexSystems. These include banks that don’t use ChexSystems, second chance checking accounts, and prepaid debit cards.
Online Banks That Don’t Use ChexSystems
Just like credit unions, there are several online banks that don’t use ChexSystems when evaluating potential customers for checking accounts. These banks may have their own set of qualifications for opening an account, but they do not rely on ChexSystems reports.
Here are some of the top banks that don’t use ChexSystems:
1. SoFi
Features & Benefits
- Sign-up bonus up to $300 with qualifying direct deposits
- No monthly fee
- Earn up to 3.80% APY on savings
- Over 55,000 fee-free ATMs
2. Current
Features & Benefits
- No minimum balance or monthly fees
- Fee-free overdraft up to $200 with Overdrive
- 40,000 fee-free Allpoint ATMs in the U.S.
- Get paid up to 2 days faster
3. Chime®
Features & Benefits
- Over 22 million downloads
- No credit check or ChexSystems
- No minimum opening deposit
- Over 60,000 fee-free1 ATMs
Second Chance Checking Accounts
Some financial institutions offer “second chance” checking accounts to customers who have been reported to ChexSystems.
These accounts often come with monthly service fees and may have limitations, such as not allowing customers to write checks or use overdraft protection. However, they can be a suitable option for people who need a second chance.
Prepaid Debit Cards
Prepaid debit cards are not linked to traditional checking accounts, so they are not subject to ChexSystems reports. A prepaid debit card can be used to make purchases, withdraw cash from ATMs, and pay bills online. However, they may have fees associated with activating, reloading, or using the card.
Frequently Asked Questions
What is ChexSystems?
ChexSystems is a consumer reporting agency that collects data on bank and credit union customers’ checking and savings account usage. This includes unpaid overdrafts, negative account balances, fraud, and suspicious activity, supplied by the credit unions and banks.
Banks and credit unions use the service to access the information. It is separate from credit reports and Telecheck, which mainly focuses on check cashing.
Why do banks and credit unions use ChexSystems?
Banks and credit unions use ChexSystems to check an individual’s banking history and identify potential risks when they apply for a new account. ChexSystems maintains records of account openings and closures, as well as any instances of bounced checks, fraud, or other negative banking activity.
This information helps financial institutions to identify customers who may be more likely to cause financial losses, such as by writing bad checks. This can help the financial institution make a decision on whether to approve an account application.
How can I be removed from ChexSystems?
To be removed from ChexSystems, you can dispute any errors on your ChexSystems report. To achieve this, you will need to contact ChexSystems directly and provide documentation supporting your dispute. If the dispute is found in your favor, the errors will be corrected on your report.
You can also work on improving your banking history, pay off any outstanding debts, and avoid future negative incidents. Once you have resolved any outstanding issues and have a positive history, you can request that the financial institution that reported the information to ChexSystems to remove it from the report.
