ChexSystems may not come across as a familiar term to many. ChexSystem works just like a FICO credit score system, so it can play a huge role in a bank-customer relationship since it serves many validation purposes. It is similar to a credit score system as it tracks financial transgressions. Unlike a credit score system, ChexSystems provides no score of clients’ borrowing habits. It only comes invaluable in determining the history of transactions between a bank and their client. Some transactions tracked by the ChexSystems include; forced bank accounts closure, declined checks and any fraudulent activity. If you’re not into the above credit score systems the chances are you might want to know what banks that don’t use ChexSystems.
8 Banks That Don’t Use ChexSystems
Although no score is provided by the ChexSystem for these notations, you may have problems when there are many bottlenecks in your banking history tracked by the firm. Such records are also quite difficult to clear from your records. On the brighter side, banking history is not tracked to a client beyond 5 years by the ChexSystems and the duration may even be shorter in some cases.
Some banks don’t use the financial system for its records. So if you don’t fancy the longwinded waiting period to clear any transgressions on your banking record, the following 9 banks should be on your checklist.
Green Dot Bank
Poor ChexSystems record can be a nightmare. However, Green Dot Bank is one institution you can bank on to keep you safe from any such problems. The bank doesn’t rely on the credit score or ChexSystems and is, therefore, a perfect fit for users who have exceedingly high overdraft fees or other dents on their banking history. The bank also provides a debit card with a cushioning that helps to prevent overspending and consequent problems. A small transaction fee applies to in-store purchases made by users. Green Dot Bank clients can alsosend money to other
Green Dot users, pay online bills or create deposit checks – all for free.
Another option you may want to consider if ChexSystems records are a concern is Chime Bank. Opening a Chime Bank account is free with no minimum balance requirements, monthly or overdraft fees. The bank doesn’t use the ChexSystems and fancies the technology space with a mobile application that drives many unprecedented perks like instant transaction alerts and daily updates of your balance. The bank also allows automated bill payment at no additional cost.
PNC Bank takes a new dimension in banking by giving users the opportunity to take a Money Management Course after opening a Checking account at any local branch. Only a minimum initial deposit of $25 is required. The bank also charges a paltry $7 monthly fee and is probably more demanding than other banks. However, their ChexSystems free mode of operation makes them another awesome option to consider if you have a poor Credit Score or any concern on your ChexSystems record.
Southwest Financial Federal Credit Union
Got issues with ChexSystems? No worries! You can open a Southwest Financial Federal Credit Union account with no hassles. The bank provides a checkless checking account that doesn’t require paper checks and also provides a savings account with the checking account, a perfect way to set aside emergency/contingency funds. Both checking and savings accounts provided by this financial institution attract no monthly fees.
With an Opportunity Checking account, Wells Fargo also has a place for the downtrodden. The bank has a robust history and also doesn’t make use of the ChexSystems for new clients. Online banking and bill payments are available, just as is possible in other banks. But you’ll have to open your account in person and bear a $10 monthly fee which can be waived once certain monthly thresholds are met.
With limited coverage being the only caveat, United Bank is another go-to option if you have serious financial transgressions and a poor ChexSystems record. The bank operates with no monthly fee and has locations in Maryland, Virginia, Ohio, and Pennsylvania. Only a minimum deposit of $50 is required to open a United Bank account.
This bank basically works as a brokerage and provides more than you’d expect from a conventional bank. Users only need a small investment fund to open a checking account. But no monthly fee or minimum deposit is required in contrast to some other banks on this list. They are ChexSystems free and also issue a debit card. If you desire investmenttips for a retirement account or stock market, TD Ameritrade is a great option for you.
BBVA Compass, just like other banks on this list doesn’t need your ChexSystems record for opening a new account. So if you have had issues opening elsewhere, you sure have a destination that provides a seamless and free checking account which can be opened online. The bank, however, has limited coverage with branches only open to residents in Arizona, Texas, Colorado, Alabama, California, Florida and New Mexico
Woodforest National Bank
And last on our list is Woodforest National Bank. Users have no ChexSystems worries as it is not required by the bank for new accounts. However, the bank requires an initial startup cost of $34 and $9.95 or more monthly fee. So if this is not burdensome, Woodforest National Bank is another bank with widespread coverage to open an account with.