Do you struggle to get credit cards or loans due to poor credit? It can be frustrating. But what can even be more frustrating is getting denied for opening a bank account. Have you ever even heard of such a thing? It is becoming more common, and part of the reason is a company called ChexSystems. What is ChexSystems? Are there any banks that don’t use ChexSystems? Read on to learn more.
What Is the Difference Between a Credit Reporting Agency and ChexSystems?
Credit reporting companies like Equifax and Transunion collect information from your public records and from creditors. They then use this information to give you a credit score. Depending on your your score and the number of risk factors on your report, creditors will extend you further credit or deny it. ChexSystems basically does the same thing for banks and credit unions.
How May ChexSystems Affect Your Ability to Open a New Bank Account?
This can make it difficult to open a bank account. If you have had large negative balances with banks in the past or have had many insufficient funds transfers on your accounts, banks that use ChexSystems will be unlikely to allow you to open an account as they will see these former issues and consider you a risk. These records can affect your ability to bank for many years. Approximately 4 out of 5 banks presently use ChexSystems and the number is continuing to rise. How can you open an account if you have had some issues with a bank in the past half a decade? You will need to look for ChexSystems-free banks or credit unions that don’t use ChexSystems.
Are There Credit Unions or Banks That Don’t Use ChexSystems?
Below, you will find a list of banks that don’t use ChexSystems. Please understand that this method of detecting checking account risks is becoming more common, thus we cannot ensure that the banks and credit unions listed below have not started to use ChexSystems since we last updated this list. We also cannot guarantee that you will be able to open an account even at a CheckSystems-free bank or credit union. We cannot control the many factors that go into the decisions of a bank or credit union. This list is simply to help you find banks and credit unions that don’t use ChexSystems at present as far as we know. Be sure to double check with the financial institution to ensure that they have not changed their policy since this list was formed. We hope that this list will prove useful to you, and we wish you all the best in your banking endeavors.