If your application for a checking account has been denied due to a negative banking history, you may feel frustrated by the limited options available. ChexSystems is a consumer reporting agency that tracks banking behaviors like unpaid fees and overdrafts, which can stay on your record for up to five years. This can make it difficult to open new accounts at many financial institutions during that time.
The Role of ChexSystems in Banking
Many banks and credit unions use ChexSystems to evaluate whether potential customers are a good fit for their services. With approximately 80% of financial institutions relying on ChexSystems reports, a negative entry can significantly limit your banking options. However, not all banks rely on this service, and some offer second chance accounts to help individuals who have faced banking difficulties regain access to standard banking services.
Community First Credit Union’s Approach
Unfortunately, Community First Credit Union does use ChexSystems when reviewing applications for checking accounts. However, they offer a second chance checking account for individuals who have been denied elsewhere. This account is designed to provide an opportunity for those with past banking issues to rebuild their financial standing and get back on track with their banking.
If Community First Credit Union’s options don’t meet your needs, there are several other banks and credit unions that do not rely on ChexSystems. Here are some alternatives worth considering:
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.
