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9 Banks That Don't Use ChexSystems

The Huffington Post logo The Huffington Post 11/03/2016 GOBankingRates

2016-03-11-1457724749-957877-chexsystems1.jpg © Provided by The Huffington Post 2016-03-11-1457724749-957877-chexsystems1.jpg By Lia Sestric, Contributor
If your past financial mistakes have gotten you blacklisted by ChexSystems and blocked from opening a bank account, you're not alone. More than 9 million Americans (7.7 percent of U.S. households) do not have a bank account, according to a 2013 study by the Federal Deposit Insurance Corp (FDIC).
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The good news is there are other non-ChexSystems banks and account options to help move you forward with your financial life. Here are 10 banks that don't use ChexSystems to screen applicants.
Related: Here's Why It's So Hard to Get Out of Debt

What Is ChexSystems?

ChexSystems, Inc. is a consumer reporting agency that collects data from banks and credit unions on checking and savings account activity. ChexSystems uses this information to create tools, including consumer reports, for screening bank account applicants.
This agency helps financial institutions screen potentially risky account applicants by issuing reports that detail past financial stumbles, such as overdrawn and closed accounts, and any unpaid debt. If you've been flagged by ChexSystems, you might have a difficult time obtaining a bank account.
According to Credit Builders Alliance, a nonprofit group that helps poor communities build credit, about 80 percent of all financial institutions use this agency to screen customers and decide whether or not to extend banking privileges. Here are banks that do not use ChexSystems.
Read: Who Can Access My ChexSystems Record or Profile?

Banks That Do Not Use ChexSystems

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1. TD Ameritrade

Don't have a clean slate with ChexSystems? That's no problem at TD Ameritrade. Since TD Ameritrade is a brokerage, you'll need to first open a brokerage account. Then, you'll be able to add checking to your account. Perks of your TD Ameritrade account include:
  • No minimum deposit
  • No monthly fees
  • Ability to pay bills online
  • Direct deposit allowed
Photo credit: TD AmeriTradeBusinessWire

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2. Axiom Bank

Everyone deserves a second chance, right? Your ChexSystems report doesn't matter at Axiom Bank. Headquartered in Central Florida, this community bank offers its Opportunity Checking account to those with previous financial stumbles. Features of this checking account include:
  • No minimum balance requirement
  • $10 monthly service fee
  • $25 minimum opening deposit

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3. Woodforest National Bank

Woodforest National Bank, a regional financial institution, also offers a Second Chance Checking account to customers with a history of banking problems. However, you must apply in person. Keep in mind that:
  • A minimum of $25 is required to open an account.
  • There is a monthly fee of $9.95 with direct deposit or $11.95 without it
  • Woodforest National Bank is located in select states, including: Alabama, Florida, Georgia, Kentucky, Louisiana, Illinois, Indiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia

4. United Bank

A bad ChexSystems report is not a problem with United Bank. However, the bank has limited locations in Washington, D.C., Virginia, Ohio, Maryland and Pennsylvania. Features and requirements of this account include:
  • $50 minimum opening deposit
  • Free United Visa CheckCard
  • No monthly fees

5. Southwest Financial Federal Credit Union

Don't want to fuss with paper checks? The Texas-based Southwest Financial Federal Credit Union offers a Checkless Checking account. It's perfect for individuals who previously couldn't qualify for bank accounts. Features and requirements include:
  • Free debit card
  • No monthly service fees
  • A required savings account

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6. Green Dot Bank

Green Dot's reloadable prepaid debit card and GoBank checking account is a nationwide banking option. "Neither a ChexSystems score nor credit bureau rating is used as the basis for determining customer eligibility," said Lewis Goodwin, CEO of Green Dot Bank. Instead, Green Dot uses risk-modeling techniques to allow almost any consumer age 18 and over who passes ID verification to open an account.
Green Dot Prepaid Debit Card:
  • Store purchase fee (Up to $4.95) but consumers can buy card online free of charge.
  • Monthly fee: $5.95 (although you can avoid this fee by loading $1,000 onto the card)
  • Card reload fee: Up to $4.95 each time.
GoBank Checking Account:
  • Purchase fee: ($2.95 for a starter kit at participating Walmart stores) or sign up online or on the app for free.
  • Monthly fee: $8.95, but free in any month that you make qualifying direct deposits totaling at least $500.
  • No overdraft fees, NSF fees or penalty fees.
Photo credit: Green Dot Bank / BusinessWire

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7. Wells Fargo

Wells Fargo has a big heart, offering Second Chance checking to customers with a negative ChexSystems report. Called an Opportunity Checking account, it includes everything you expect from a basic checking account, from online banking to easy bill pay. However, you'll have to open the account at a local branch. Your account will come with:
  • $10 monthly fee, which can be waived if you make 10 debit card purchases, maintain a $1,500 daily balance or post a total of $500 in direct deposits per statement cycle
  • Minimum opening deposit is $50

8. PNC Bank

Another big bank that offers Second Chance checking to customers with a bad banking report is PNC, which offers Foundation Checking. This account is for customers who want to re-establish themselves in the banking world. You'll have to open an account in person after taking and passing an online Foundations of Money Management Course. Your account will also come with:
  • $7 monthly service charge
  • $2 fee for paper statements
  • After 6 months or longer, you might be eligible for other accounts

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9. Capital One

Although the Capital One 360 account does consider your ChexSystems report, Capital One doesn't base approval on ChexSystems alone. Therefore, it's still possible to be approved for a Capital One 360 account. Chances are, if you have a decent credit score and no banking fraud, you'll be golden.
  • No fees or minimums
  • Free MasterCard Debit Card
Read more: 6 Times a Prepaid Debit Card is Better Than a Checking Account This article, 9 Banks That Don't Use ChexSystems, originally appeared on
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