If you’ve been denied a checking account because of a negative banking history, finding a bank that fits your needs can be difficult. ChexSystems is a reporting agency that tracks banking activities like unpaid fees or overdrafts. These records can remain on file for up to five years, often making it harder to open a new account.
How ChexSystems Can Affect Your Banking Options
With roughly 80% of U.S. banks and credit unions relying on ChexSystems, a negative report can limit your access to traditional banking services. If you’ve had issues with your banking history, this could result in denied applications. Thankfully, not all financial institutions use ChexSystems. Some even offer second chance accounts, designed specifically for those looking to start fresh.
Charles Schwab’s ChexSystems Policy
Unfortunately, Charles Schwab does use ChexSystems when assessing checking account applications. This means that if your report includes negative entries, your application may be denied. Unfortunately, Charles Schwab does not offer second chance accounts, making it difficult for those with a troubled banking history to qualify.
While Charles Schwab might not be an option, there are other banks and credit unions that don’t rely on ChexSystems. If you’re looking for alternatives, here are some to consider:
U.S. Bank
- Up to $400 sign-up bonus
- $25 minimum opening deposit
- Monthly service fee can be waived
- Over 40,000 fee-free ATMs
SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.80% APY
- Over 55,000 fee-free ATMs
- Early pay with direct deposit
Current
- Build credit and earn points with every swipe
- No minimum opening deposit or maintenance fees
- Get paid up to 2 days faster
- No credit check or ChexSystems
Learn More
- Banks That Don’t Use ChexSystems – Take the first step to rebuilding your banking history with our list of banks that do not use ChexSystems for account approval.
- Credit Unions That Don’t Use ChexSystems – Find a credit union that will work with you, not against you. Learn about the credit unions that don’t use ChexSystems.
- Am I in ChexSystems? – Unsure if you’re in ChexSystems? Learn how to find out and take control of your financial status.
- How to Get Out of ChexSystems – Learn how to get out of ChexSystems in four simple steps.
- Second Chance Checking Accounts – Take control of your financial future with our list of over 250 banks that offer second chance checking accounts.
