If you’ve been turned down for a checking account due to a negative banking history, you may feel like your options are limited. ChexSystems is a consumer reporting agency that tracks your banking behavior, including issues like unpaid fees, overdrafts, and account closures. These records can remain on file for up to five years, making it harder to open new accounts during that period.
How ChexSystems Affects Banking Options
Around 80% of banks and credit unions across the U.S. use ChexSystems to assess new applicants. If you have negative marks on your ChexSystems report, this could result in your application being denied. However, some financial institutions don’t rely on ChexSystems, and a few offer second-chance accounts that provide banking opportunities to those with past issues.
HomeStreet Bank’s Use of ChexSystems
Unfortunately, HomeStreet Bank does use ChexSystems when reviewing applications for new accounts. Like many other financial institutions, they rely on the information provided by ChexSystems to help evaluate potential customers’ banking histories and minimize risk.
Alternatives to HomeStreet
If HomeStreet Bank isn’t the right fit for you, there are other banks and credit unions that don’t rely on ChexSystems. Here are a few great options 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.
