We all make mistakes. Picking up the kids 10 minutes late, running a red light, or accidentally divulging someone’s secret is all part of the experience of being human.
Most of these mistakes do not follow us for the rest of our lives. Generally, we forget these mistakes and are able to move on and learn.
However, there are some mistakes that are just as honest that can follow you for years. Financial mistakes like overdrawing on a checking account can impact your life in surprising ways down the road. One way that financial missteps can follow you is through ChexSystems.
ChexSystems is a consumer-reporting agency that tracks the financial behavior of individuals and reports that behavior to banks when consumers want to open an account at a bank. Many banks use reports from ChexSystems to determine whether they will allow people to open accounts with them.
ChexSystems reports look at your financial history from the past five years to determine whether you are a good client to give an account to.
However, not all banks use ChexSystems. Some banks are willing to look away from consumers’ financial history and give them a “second chance” bank account. If you are one of the many people in the world with a spotty financial history, you should consider opening your next bank account with one of these banks.
Also, as you take action with setting up your bank account, look for different ways to build your credit at the same time.
That said, these nine banks do not use ChexSystems to determine whether they will give you an account. This makes them a great option for individuals who would like to build back their credit after a financial misstep.
What are the Best Banks that Don’t Use ChexSystems?
Our top pick is Chime. Chime does not use credit checks to determine whether they will grant you a checking account. They also do not use ChexSystems reports to determine suitability for accounts.
For those interested in banking with Chime, you should know that chime is an online-only bank, meaning that they do not offer in-person services to their customers.
Because they are online-only, Chime can offer accounts with no startup fees and no overdraft fees. This makes Chime great for people who need a second chance to improve their credit.
You can work on improving your credit without worrying all the time about whether you will overdraw your account. There are also no monthly maintenance fees for Chime accounts.
Although some people are worried that it is more difficult to withdraw money from an online-only account, you can rest assured that your Chime account will be easy to withdraw from.
Chime has partnerships with over 38,000 ATMs nationwide, making it easy for its customers to access their money anytime and anywhere.
Unfortunately, the one downside with chime is that it can be a bit difficult to orchestrate cash deposits in Chime accounts. Customers need to find a Green Dot location in order to deposit their cash.
Overall, the benefits of chime heavily outweigh the detriments, making it a great option for those who want to improve their credit.
Acorns is our second pick for a great bank that doesn’t use ChexSystems. Acorns is a fantastic bank that offers many useful features beyond traditional checking and savings accounts.
Like Chime, Acorns has no overdraft fees, no minimum balance requirements, and no set-up fee. However, unlike Chime, Acorns is also an investing platform that offers users the opportunity to slowly invest their money.
We also love Acorns because it has no ATM fees, and it will reimburse customers for any fees they accrue in transactions.
Acorns uses a unique system where they round up users’ purchases to the nearest dollar and invest the remaining money for you. This system allows users to improve their credit and set up a system of investing that will help them improve their financial standing.
Some people might feel a little warry about how different and revolutionary Acorns sounds on paper. However, they offer all of the features of a bank that you might look for.
Not only do they offer online banking, but they also offer easy direct deposit, mobile check deposit, and automated bill pay.
You may have started this list wondering: “What bank does not check credit?” At this point, you have probably realized that you have many options when it comes to banks that do not check credit.
Like most banking choices, there are no hard and fast rules for finding the best checking account for bad credit. In fact, the right choice for you or your business really depends on what you are looking for in a bank.
This next bank, SoFi, is a great choice for anyone who wants both great online service and the option to visit a physical branch every once in a while.
SoFi offers no-fee banking services like chime; however, they also have physical locations for those who just need to talk to someone face to face every once in a while. People who bank with SoFi also get the opportunity to receive physical checks, which is a service that few primarily-online banks will provide.
Like Acorns, Chime allows its customers to visit over 55,000 ATMs nationwide without paying fees.
Maybe you would rather have a savings account and start to put away money slowly. CIT Bank is a great option for you then. CIT Bank offers an annual percentage yield through its entirely online banking system.
CIT Bank has checking and savings accounts to suit any customer. They are a fantastic choice if you are interested in learning how to grow your nest egg.
There are a few downsides to banking with CIT Bank. The first issue is that they are entirely online. This means that you will never be able to be advised by a physical teller.
They also have a $100 minimum for their initial deposit, which means that they are not a great option for those of us who would like to simply put away a tiny bit of money at a time.
Because they do not have any physical locations, CIT has partnered with ATMs across the country to make it easier for their customers to withdraw money from partnering banks.
Now, not all people are looking to avoid ChexSystems for the same reasons. Some people are looking for a way to get away from a checkered past, while others are simply looking for a way to get away from an overdraft on their account. If you are in the latter category, BBVA is a great bank for you.
While BBVA is a member of FDIC and a highly respected bank, they also do not want people’s past getting in the way of them succeeding financially. This is why BBVA has chosen an alternate path to ChexSystems when it comes to checking the history of their prospective clients.
BBVA has chosen to use Early Warning Services (EWS) to screen their users rather than ChexSystems. They made this choice because they wanted to avoid giving accounts to fraudsters while ensuring that folks with mistakes in their past were still able to get accounts and improve their credit.
EWS will not report overdraft incidents to BBVA, meaning that you should be able to open an account with them.
If you can open an account with BBVA, they are a great option for a few reasons. You get free check writing, online banking, direct deposit, and a debit card.
Although you do have to make an initial deposit to start your account, the initial deposit is only $25, making it financially accessible to most people.
6. Renasant Bank
Suppose you are really concerned that your banking history will disqualify you from opening an account. In that case, Renasant Bank is a good option. Renasant Bank does not use EWS, ChexSystems, or TeleCheck to check your banking history before you open an account.
A few things make banking with Renasant Bank a little more tricky. You need to deposit $50 at least to open your account, and if you bank with Renasant, you need to pay a monthly maintenance fee of $8. However, you can avoid paying the $8 fee if you keep at least $500 in your account.
7. TD Bank
TD Bank is one of the biggest banks in North America, so they offer many different banking options for different folks. TD Bank’s simple checking account is a great option for those trying to rebuild their credit after a financial mistake.
The simple checking account offers free online statements and has no minimum deposit. Unfortunately, there is a $5.99 account maintenance fee that you must pay unless you are a student.
There is no minimum balance requirement on simple checking accounts at TD Bank. Those who have simple checking accounts receive discounts on personal loans and home equity loans. This means that TD can be a great forever home for your money.
TD Bank is an excellent choice for people interested in eventually turning their simple checking account into a savings account. It is also great for people who are interested in moving into investing in the future.
Banking with TD is particularly useful for people who travel around North America frequently, as there are many TD Bank locations in both the US and Canada.
8. US Bank
If you are a senior interested in rebuilding your credit, US Bank is a great option for you. Why? With over 3,000 branches, they are a great option for those who want an in-person banking option wherever they go. Furthermore, US Bank waives all fees for people 65 or older.
Even if you aren’t a senior, US Bank could be an excellent option for you. Their monthly maintenance fee is only $6.95 per month. However, you can get your maintenance fee waived if you keep at least $1,500 in the account or if you set up a direct deposit into the account amounting to over $1,000.
These workarounds make it a cheap option for anyone who can afford to keep some money in the account at all times.
Similar to TD Bank, US Bank has lots of locations and even more ATMs to bank on the go wherever you are. If you want to use US Bank to rebuild your credit, starting with an Easy Checking account is a great beginning. From there, you can always open other types of accounts.
9. SunTrust Bank
Go back to the basics with the essential checking account from SunTrust. This account doesn’t use ChexSystems and is a great beginning place.
Although they do have a monthly maintenance fee of $7, they will waive that fee if you:
- Are a student,
- Deposit over $500 every month,
- Keep at least $500 in the account at all times, or
- Initiate at least 10 transactions each month.
There is a $100 minimum to get you started at SunTrust Bank, but once you are in their system, you have the chance to reap a lot of nice rewards. Because SunTrust is a slightly smaller bank than TD Bank or US Bank, it is easier to reach them over the phone if you need help.
SunTrust has over 1,000 locations in the US and over 2,000 ATM locations, combining a small bank feel with big bank perks. Most of their locations are in the American southeast, so keep that in mind if you are planning on banking with them in person.
Choosing A Bank To Rebuild
As you choose a bank to help you rebuild your finances after a mistake, there are a few things you should keep in mind. Make sure that you will not be losing significant money in the bank you choose. If you are someone with a history of overdrawing your account, choose a bank with no overdraft fees.
Keep in mind there are different ways to build your credit as you choose a bank to rebuild with. The tried and true ways that are super simple are with credit builder accounts and secured credit cards.
So, remember that when choosing a bank, you are choosing a bank that reflects where you want to go, not just where you are today.
Where Can I Open a Bank Account if I'm on ChexSystems?
Paul Martinez is the founder of BendingDestiny.com. He is an expert in the areas of finance, real estate, and eCommerce.
Join him on BendingDestiny.com to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.