Are you having trouble getting approved for a checking account due to a poor banking history? If so, it’s important to be aware of your options and find alternative banking solutions that can meet your needs.
ChexSystems is a consumer reporting agency that monitors various banking activities such as unpaid fees, overdrafts, and account closures. These records can stay on your report for up to five years, potentially affecting your ability to open new accounts.
ChexSystems’ Influence on Your Banking Choices
Approximately 80% of banks and credit unions in the United States use ChexSystems to review new account applications. A negative ChexSystems report can result in your application being rejected, limiting your access to traditional banking services. This system helps banks evaluate the risk of taking on new customers based on their previous banking behavior.
Citibank’s ChexSystems Policy
If you’re thinking about opening a checking account with Citibank, you might be wondering if they use ChexSystems to screen applicants. Unfortunately, the answer is yes. Citibank relies on ChexSystems when reviewing new checking account applications. If your ChexSystems report contains negative information, such as unpaid fees or overdrafts, your application may be declined.
Alternatives to Citibank
While Citibank uses ChexSystems, there are still options available to you. Several banks and credit unions don’t depend on ChexSystems for account approval, making it easier for those with a negative report to open an account. Here are some great alternatives:
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.
