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.
Credit unions are non-profit organizations that are owned and controlled by their members. In this article, we will explore some credit unions that don’t use ChexSystems, and discuss some benefits of choosing a credit union.
15 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 15 credit unions that don’t use ChexSystems.
1. American Airlines Credit Union
American Airlines Credit Union (AACU) was founded in 1936 by American Airlines employees. It has since grown to manage $8.5 billion in assets. The credit union has branch locations in the following states:
- District of Columbia
- North Carolina
- New Jersey
- New York
AACU offers a variety of checking account options that come with a range of features and benefits. All of their checking accounts offer no monthly service fee or they provide an easy way to avoid the fee.
Furthermore, all bank accounts offer additional benefits such as direct deposit and online statements. They also utilize the CO-OP Shared Branch Network for added locations and convenience.
2. Navy Federal Credit Union
Navy Federal Credit Union (NFCU), founded in 1933, is a credit union exclusively for active-duty military, veterans and their families. With over 10 million members, NFCU offers a range of financial products and services, including the Free EveryDay Checking account.
This account is available to all members and comes with no monthly fees or balance requirements. It also has no opening deposit requirement, which makes it a great option for those looking to rebuild their credit.
3. Unify Financial Credit Union
UNIFY Financial Credit Union offers a Right Start Checking account for those new to banking or looking to improve their checking account history. This simple account has no minimum balance and no monthly fees.
Additionally, members have access to over 100,000 surcharge-free ATMs and more than 5,000 full-service CO-OP Shared Branches nationwide. The credit union also provides online and mobile banking and overdraft protection.
They have locations in the following states:
- New Jersey
- West Virginia
4. America First Credit Union
As a member of America First Credit Union, get have access to no-cost checking and savings accounts. Headquartered in Utah, the credit union primarily serves members who live in western states such as Utah, Arizona, Nevada, and Idaho.
Although branch locations may be limited, America First has a large ATM network that covers the entire country. Additionally, the credit union provides various savings products, with interest rates that are comparable to those offered by many banks.
5. Hope Credit Union
Hope Credit Union is a credit union with branches in five states, including Tennessee, Mississippi, Louisiana, Arkansas, and Alabama. With 28 locations and access to the Shared Branching Network, members have access to over 5,000 additional branches nationwide.
The Easy Checking account comes with a monthly fee of $9.95. However, you can have it waived if you maintain a balance of $200 or more.
6. Credit Union One
Credit Union One is a Michigan-based credit union with 19 branches and access to the CO-OP branch network. Eligibility for membership includes residents of Michigan, as well as those who work, pray, or attend school in the state.
The credit union’s Basic Checking Account requires an initial deposit of $25 and has a monthly fee of $15. However, this can be reduced to $10 with a direct deposit.
Additionally, the account offers free online and mobile banking, as well as a platinum Visa card with unlimited fee-free ATM withdrawals from a network of over 30,000 ATMs.
7. Staley Credit Union
Staley Credit Union is a not-for-profit financial cooperative founded in 1930. They serve members in several counties in Illinois, Indiana, and Tennessee,
SCU offers a second chance checking account, known as the Staley Renew Checking account. It’s designed for individuals who have had difficulty opening a traditional checking account in the past.
This account requires a minimum opening deposit of $50. It also comes with a monthly fee of $7.00.
8. Southwest Financial Federal Credit Union
Southwest Financial Federal Credit Union is a credit union based in Dallas that offers 100% virtual services, which means that members can join from anywhere.
With the eBrand account, members can access their accounts, transfer money, and pay bills remotely. The credit union also provides a mobile app, which allows members to deposit checks, receive account alerts, and view bank statements from the convenience of their own home.
Southwest Financial also offers a variety of financial products and services, including checking, savings, retirement accounts, and lending products. Furthermore, for members who need to access an ATM, Southwest Financial has partnered with Allpoint, which provides access to 55,000 ATMs worldwide.
9. Excite Credit Union
Excite Credit Union serves members in several California and North Carolina counties, as well as employees and families of over 400 companies. The credit union offers a Fresh Start Checking account for those who have been denied a checking account in the past.
The account has a $15 monthly fee, $50 minimum opening deposit, no minimum balance requirement, and a free Visa debit card. Additionally, members get four free withdrawals from out-of-network ATMs each month, and no ATM fees when using network ATMs.
10. Premier America Credit Union
Premier America Credit Union is a credit union with branches in California and Texas, and over 5,000 shared branch locations. They serve those who live, work, or go to school in Los Angeles, Ventura, or Harris counties, or by joining the Thousand Oaks Alliance for the Arts.
PACU offers a Fresh Start Checking account, which is ideal for those who have ChexSystems records and are looking to start again. The account requires a $25 minimum opening deposit and has a $13 monthly maintenance fee, which can be reduced to $10 per month by making at least $200 worth of direct deposits each month.
11. Ashland Credit Union
Ashland Credit Union has four locations in Kentucky, Ohio, and Minnesota. They have a share draft checking account with no minimum deposit requirement. It pays monthly dividends on accounts with balances over $500.
Members have access to 30,000 ATMs nationwide. They also offer overdraft protection services and custom debit cards for $20.
12. American United Federal Credit Union
American United Federal Credit Union is a Utah-based credit union that has 10 locations in Utah and California. They offer a Fresh Start Checking account with features such as end-of-year reward dividends and overdraft protection.
Though there is a fee to open the account and monthly fees after that, the account also includes access to over 30,000 fee-free ATMs, a Visa debit card, Bill Pay, and various other perks and benefits.
13. Delta Community Credit Union
Delta Community Credit Union is a credit union headquartered in Georgia, with branch locations in Georgia, Kentucky, Texas, and Utah.
Delta Community’s Personal Checking Account comes with no monthly service or per-check fees. You also get 24-hour access to your funds with a Delta Community Visa Debit Card (with some restrictions) and overdraft protection.
Members have access to many ATMs and merchant locations that can be used for free. The account also offers Direct Deposit and Payroll Deduction options, and reward points earned every time you sign for a purchase when using the Visa Debit Card.
14. Tower Federal Credit Union
Tower Federal Credit Union offers a range of banking services through its 17 branches located throughout Maryland. One of their popular products is a free checking account with no monthly fee or minimum balance requirement.
Additionally, members have access to over 30,000 unlimited fee-free ATMs, making it easy for them to access their money at familiar places. They also offer 24/7 digital banking through their top-rated mobile app, allowing members to manage their accounts on the go. Another benefit is that members can get paid up to a day early with direct deposit.
15. Texas Trust Credit Union
Texas Trust Credit Union operates 22 branches across Texas. They offer an Easy Checking account with no minimum balance requirement, but a $25 minimum deposit is required to open the account.
This checking account comes with a Mastercard debit card, overdraft protection, and access to more than 55,000 fee-free ATMs, among other benefits.
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.
Banks That Don’t Use ChexSystems
Just like credit unions, there are several 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:
Features & Benefits
- Over 14.5 million downloads
- No credit check or ChexSystems
- No minimum opening deposit
- Over 60,000 fee-free1 ATMs
With Chime®, bad credit is not an issue. They offer an award-winning financial app, a debit card, and a credit builder Visa® credit card, all with no credit check.
The Chime Checking Account has no monthly fees:
- no monthly maintenance fees
- no foreign transaction fees
- no minimum balance fees
Chime has over 60,0001 fee-free MoneyPass® and Visa® Plus Alliance ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit2. You can also deposit cash for free at over 8,500 Walgreens.
You can see why Chime is our #1 choice.
Features & Benefits
- No credit check or ChexSystems
- $100 bonus after 10 purchases in 60 days
- Over 16,000+ fee-free ATMs
- Over 4,700 branches nationwide
- $4.95 monthly service fee
Chase offers a checking account called Chase Secure Banking. The account comes with a Chase debit card that gets you access to over 16,000 fee-free ATMs.
Some features of this checking account include free online bill pay, free money orders and cashier’s checks, no overdraft fees, and no minimum opening deposit. However, there is also a monthly service fee of $4.95.
When you open a Chase Secure Banking account and make 10 qualifying purchases within 60 days, you’ll get a $100 cash bonus.
Account approval is immediate, and the debit card typically arrives within days.
Features & Benefits
- No credit check or ChexSystems
- 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
Current is a financial technology company, not a bank. The company does not use ChexSystems or pull your credit report, and they have a lot to offer.
A Current mobile bank account includes fee-free overdraft protection of up to $200. Account holders also get access to over 40,000 fee-free Allpoint ATMs with your Current debit card, and there is no minimum balance or hidden fees.
You can also get paid up to two days early with direct deposit with a Current Premium account. Plus, Current offers up to 4.00% APY with Current Savings Pods.
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.
Which credit unions do not use ChexSystems?
While most credit unions do use ChexSystems when making decisions about opening new accounts, there are plenty that do not.
With over 4,900 credit unions in the United States, it’s important to check with the specific credit union you’re interested in to confirm their policies and procedures regarding ChexSystems. The list provided above is only a partial list and should be taken as a reference.