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18 Banks That Don’t Use ChexSystems: A Guide to Second-Chance Banking

Banks That Don’t Use ChexSystems

Imagine trying to secure a bank account only to realize that you have been flagged by ChexSystems, which keeps tabs on your banking history, and that you’ve been denied the chance to open an account. This may leave you stranded and force you to choose from a slim list of options to manage your finances.

However, this problem can be avoided by opting for banks that do not use ChexSystems. In this article, we will provide you with a list of banks that do not use ChexSystems, their features, and what sets them apart from others.

Let us dive in and find the best bank account for you. 1.

TD Ameritrade

TD Ameritrade offers new customers a viable option to avoid ChexSystems. Instead of using ChexSystems to review your application, they use your credit score to determine eligibility.

The account doesn’t have a monthly fee, thus removing the financial strain of paying charges every month. However, remember that you have to deposit a specific amount to activate your account.

2. Axiom Bank

If you are looking for a second-chance account and those associated with ChexSystems, Axiom Bank offers the best service.

Its Opportunity Checking account meets this need and encompasses several features like a debit card, online banking access, and bill pay, among others. Some of the drawbacks of this account include a monthly cost of $12.95 and difficulty in opening the account if you owe Axiom Bank.

Nevertheless, the account offers an opportunity to rebuild your banking history. 3.

Woodforest National Bank

If you’re looking for a second-chance account and a low maintenance fee, look no further than Woodforest National Bank. Their second chance account is relatively affordable, with a monthly fee of $9.95.

Also, you can waive this fee if you have a direct deposit. This account includes a debit card, check writing privileges, and mobile banking access, among other features.

4. GTE Financial

GTE Financial works well if you need comprehensive banking services such as checking and savings accounts, loans, mortgages, and other financial services.

The Go Further account saves you from the hassle of ChexSystems and offers several features like a debit card and online and mobile banking. However, their checking account monthly maintenance fee is $9.95.

5. Southwest Federal Financial Credit Union

The Checkless Checking account is a great option for customers who need a credit union, and don’t want to worry about ChexSystems.

The account has no monthly fee, no minimum balance requirement, online banking, and debit cards. 6.

Green Dot

Green Dot offers prepaid debit card accounts without the requirement of a credit check or ChexSystems review. They charge a monthly fee of $7.95, but this can be waived if you maintain a minimum balance or have a set monthly deposit.

Also, they offer mobile banking and the ability to make P2P (peer-to-peer) transactions. 7.

Wells Fargo

Wells Fargo’s Clear Access Banking account is offered to customers who want to avoid ChexSystems. It offers debit cards and ATM access, online banking, and a monthly fee of $5.00, which can be waived if you maintain a minimum balance.

8. Capital One

Capital One is one of the best options for those who have poor credit because they do a soft check on your credit before approving your account.

There are no monthly fees, and you get access to mobile banking, checks, and online services, among other features. 9.

PNC

The Foundation Checking account is an excellent option for those who want to avoid ChexSystems. The account requires a $25 minimum deposit to open, and there is a monthly fee of $7.

There are options available to waive the monthly fee; for example, if you maintain a $500 average monthly balance for the month. 10.

Varo Bank

For people who don’t want to use ChexSystems, Varo Bank offers several services, including mobile-only banking. Their products, Checking and Savings account, are free, with no monthly fees and no minimum balance requirements.

11. San Diego County Credit Union

The Classic Checking account is offered to customers who want to avoid ChexSystems.

The account has a $5 monthly fee, but it includes benefits like a debit card, ATM access, and mobile and online banking. 12.

Credit Union One

Credit Union One is an excellent option for those who want a checking account without the issues that come with ChexSystems. Their Basic Checking account comes with monthly fees of $15, but if you set up a direct deposit, you can avoid the monthly fees.

13. Navy Federal Credit Union

Navy Federal Credit Union offers a range of checking accounts, which are available to members only.

They do not use ChexSystems, and they offer various features like no monthly fees, online banking, and mobile deposit services. 14.

SoFi

SoFi is a digital bank that offers a range of financial services, including a cash management account that doesn’t require ChexSystems. They offer competitive interest rates, ATM fee reimbursements for withdrawals, and no monthly fees.

They have an impressive mobile app that is easy to use. 15.

US Bank

US Bank has a Safe Debit account that is available to everyone, irrespective of one’s banking history. The account does not require ChexSystems, but it has some limitations, such as no overdraft fees or check-writing privileges.

16. Renasant Bank

Renasant Bank offers three checking account options that do not require a ChexSystems report.

The accounts have different service features, but all are low maintenance, and the minimum deposit is only $50. 17.

Go2Bank

Go2Bank is a mobile-only platform that doesn’t run a ChexSystems report when checking your eligibility for an account. The accounts have a $5 monthly fee and offer various features like bill pay and mobile deposits.

18. Acorns

Acorns offers banking services that allow customers to grow their savings without worrying about ChexSystems.

They offer an Acorns Checking account for a low monthly fee, no overdraft fees, and a wide range of features, including a savings account, investment account, and debit card.

Difficulties in obtaining a bank account after ChexSystems

Now that we have reviewed banks that don’t use ChexSystems, let us look at the problems that may arise when a bank deems you risky, and you need a new account. ChexSystems maintains a database of customers who have had trouble with their former bank accounts or had issues like overdrafts.

Banks use this database to determine if a customer is creditworthy before opening a new account. If your report shows up red flags, then most banks will deny you an account.

Being flagged, doesn’t mean that you have bad credit or have done something illegal. It just means that there were issues with your previous banking history that have been reported to ChexSystems.

Not having a bank account or access to other financial services can limit your ability to save, transact, or grow your credit history. Some of the consequences of not having a bank account include paying bills through costly means like a check-cashing service, applying for high-interest loans, and lower chances of employment when looking for jobs that require direct deposits.

Conclusion

In conclusion, navigating through banking services can be challenging and frustrating. However, there are options available if you want to avoid ChexSystems and rebuild your credit history.

With the banks we have highlighted, you can find the best solution for your needs. Before settling on a bank, research, and compare the features, fees, and customer service.

We hope that this article has provided valuable insights into the available banks that don’t use ChexSystems and the difficulties in obtaining a bank account after being flagged.

Benefits and Fees

If you have a poor credit history, you may have difficulty opening a new bank account. This can leave you stranded, with limited access to financial services and resources.

Fortunately, there are several options available, such as second-chance banking accounts and prepaid debit cards. In this article, we will look at the benefits and fees associated with these options.

Benefits of Second-Chance Banking Accounts

Second-chance banking accounts are designed for people who have been denied a traditional bank account due to poor credit history or a ChexSystems report. These accounts offer several benefits, including:

1.

Easy account approval process: Second-chance banking accounts provide you with the opportunity to open an account even if you have a history of bank account mismanagement. 2.

Online banking access: Most second-chance banking accounts offer online banking access, allowing customers to access their accounts anytime, anywhere. 3.

Debit card: Most second-chance banking accounts come with a debit card that you can use to withdraw money, pay bills, and make purchases. 4.

Check-writing privileges: Some second-chance banking accounts also offer check-writing privileges, allowing you to pay bills or make transactions by writing checks. 5.

Mobile banking: Many second-chance banking accounts also offer mobile banking services, enabling customers to access their accounts using their mobile phones.

Benefits of Prepaid Debit Cards

Prepaid debit cards are a great alternative to traditional bank accounts. These cards come with several benefits, including:

1.

No credit check required: Prepaid debit cards don’t require a credit check, making them ideal for people with a poor credit history. 2.

Easy application process: Prepaid debit cards are easy to apply for, and most people are approved within minutes. 3.

Direct deposit: Most prepaid debit cards allow customers to receive direct deposits, which can expedite the payment process. 4.

Easy to reload: Prepaid debit cards are easy to reload, allowing you to add funds to your account when needed.

Monthly Fees and Other Associated Costs

While second-chance banking accounts and prepaid debit cards come with several benefits, they also come with fees and costs. These fees and costs can vary depending on the financial institution and the type of account or card you choose.

Some of the fees associated with these accounts and cards include:

1. Monthly maintenance fees: Many second-chance banking accounts and prepaid debit cards come with monthly maintenance fees.

These fees can range from a few dollars to more than $10. 2.

Transaction fees: Some prepaid debit cards charge transaction fees, depending on the type of transaction you make. For example, some cards charge a fee every time you withdraw cash from an ATM.

3. Reload fees: Some prepaid debit cards charge a fee every time you reload money onto your card.

4. Overdraft fees: Some second-chance checking accounts charge overdraft fees if you spend more than you have in your account.

5. ATM fees: Some second-chance checking accounts and prepaid debit cards charge fees for using ATMs that are not in their network.

Eligibility

If you have a poor banking history, opening a second-chance checking account or joining a credit union might be a viable option. However, there are certain criteria and membership requirements you need to meet to be eligible.

Criteria for Opening Second-Chance Checking Accounts

The eligibility criteria for opening second-chance checking accounts vary depending on the financial institution. However, some common criteria include:

1.

You must be at least 18 years old. 2.

You must have a valid Social Security number. 3.

You must have a government-issued ID, such as a driver’s license or passport. 4.

You must provide proof of address, such as a utility bill or a lease agreement. 5.

You must not have a history of fraudulent activity or other illegal activities related to bank accounts.

Membership Requirements for Credit Unions

Credit unions are not-for-profit financial institutions that offer banking services to their members. To become a member of a credit union, you must meet certain membership requirements.

These requirements can include:

1. You must live in a certain geographical area.

2. You must work for a certain employer.

3. You must belong to a particular church or community organization.

4. You must belong to a particular ethnic group.

5. You must be related to an existing credit union member.

Once you meet the membership requirements, you can open a checking account at the credit union.

Conclusion

In conclusion, second-chance checking accounts and prepaid debit cards are excellent options for people who have a poor banking history. These options provide customers with several benefits, including easy account approval, online banking access, debit cards, and mobile banking.

However, they also come with fees and costs, such as monthly maintenance fees, transaction fees, and reload fees. Before opening a second-chance checking account or applying for a prepaid debit card, it’s essential to research the account or card’s fees and costs.

Additionally, credit unions also offer a viable option, but membership requirements can vary depending on the institution.

Account Details

When looking for a bank account, it’s important to consider the account details, including minimum deposits, monthly maintenance fees, minimum balances, and the types of checking accounts available. In this article, we will delve into these details.

Minimum Deposits, Monthly Maintenance Fees, Minimum Balances

When opening a bank account, the bank may require a minimum deposit before you can activate the account. This amount can vary from bank to bank.

While some banks do not ask for a minimum deposit, others can ask for as much as $25 or more. Monthly maintenance fees can also differ between banks and depend on the type of account.

Some banks charge as much as $15 monthly for checking accounts, while others will waive the fee if certain criteria are met, like a minimum balance or setting up direct deposit. Minimum balances are the balance required to keep your account open and to avoid maintenance fees.

If your balance falls below the minimum, your bank could charge you a fee. This amount varies widely between banks, often ranging between $100 and $2,500, depending on the account type.

Types of Checking Accounts Available

When opening a checking account, you need to consider the type of account that best suits your needs. These accounts may differ in features, fees, and rewards.

Here are some common types of accounts available:

1. Basic Checking Account: These accounts have the bare minimum features, such as check-writing, and usually no or low maintenance fees.

2. Interest-Bearing Checking Account: These accounts pay interest on your balance while offering the same features as basic checking accounts.

3. Rewards Checking Account: These types of accounts offer incentives like cashback or other rewards for maintaining a certain balance or meeting other criteria.

4. Second-Chance Checking Account: These accounts are designed for people with poor banking histories or have had difficulty opening traditional checking accounts.

5. Premium Checking Account: These accounts are for individuals with higher deposit and spending habits and attract high monthly maintenance fees.

Miscellaneous Information

Apart from minimum deposits and fees, you need to be aware of other miscellaneous details when opening a bank account. These include:

1.

Soft Pull on Credit Report: Soft pull means the bank will review your credit history, but it doesn’t impact your score. Mostly, banks use soft pull to verify your identity.

2. FDIC Insurance for Online-only Banks: Online-only banks are FDIC-insured, meaning that your deposits are insured for up to $250,000.

3. Restrictions on Mobile-only Banking: Some mobile-only banks may have limits on the number of transactions you can make, like check writing, only certain ATM networks to use, and a limited range of financial products and services.

4. Varying Dividends Paid by Credit Unions: Credit unions don’t pay dividends the same way as dividends are paid by stocks.

Instead, credit unions offer potentially income payments if they yield surplus cash at the end of a financial year. The amount of dividends paid and how frequently they pay can differ significantly from one credit union to the next.

Conclusion

In summary, when opening a bank account, there are several account details you should consider, including minimum deposits, monthly maintenance fees, and minimum balances. Furthermore, there are different types of checking accounts available to choose from, depending on your preference.

Beyond these factors, there are miscellaneous details to keep in mind, such as whether the bank does a soft pull of your credit report, whether the bank is FDIC-insured, and possible restrictions on mobile-only banking. By

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