If you’ve been denied a checking account due to a negative banking history, you may be wondering what your options are. ChexSystems is a consumer reporting agency that monitors your banking activity, including things like unpaid fees, overdrafts, and account closures. These records can remain on file for up to five years, making it challenging to open new accounts.
The Impact of ChexSystems on Your Banking Options
Around 80% of banks and credit unions in the U.S. use ChexSystems to screen potential customers. If you have a negative report, your application for a checking or savings account may be denied.
This can limit your access to traditional banking services, but it’s important to note that not all financial institutions rely on ChexSystems, and some offer second chance accounts for individuals working to rebuild their financial standing.
HSBC’s ChexSystems Policy
HSBC does use ChexSystems when evaluating new checking account applications. Unfortunately, if you have a negative ChexSystems report, you may struggle to open an account with HSBC, as they don’t offer any second chance accounts for individuals with a troubled banking history. This policy may create challenges for those who are trying to regain access to banking services.
While HSBC’s reliance on ChexSystems may limit your options, there are other banks and credit unions that do not use ChexSystems. If you’re looking for more flexible options, consider exploring these 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.
