If your application for a checking account has been denied due to a negative banking history, you’re not alone. ChexSystems is a consumer reporting agency that tracks negative banking activities such as unpaid fees, overdrafts, or account closures. These records can remain on file for up to five years, making it difficult to open new accounts during this period.
How ChexSystems Affects Your Ability to Open Accounts
Around 80% of U.S. banks and credit unions use ChexSystems to assess applicants. A negative report can prevent you from opening a new checking or savings account. However, not all financial institutions rely on ChexSystems, and some offer second-chance accounts for individuals with a troubled banking history.
Tower Federal Credit Union’s Policy on ChexSystems
The good news is that Tower Federal Credit Union does not use ChexSystems when evaluating new account applications. This means that even if you have a negative ChexSystems record, you may still be eligible to open an account at Tower Federal.
Tower Federal offers a wide variety of account options, from basic checking and savings accounts to more comprehensive products with extra benefits. Their focus on providing accessible banking services makes them a strong choice for those with past banking issues.
Alternatives to Tower Federal Credit Union
If Tower Federal Credit Union doesn’t meet your specific needs, there are other banks and credit unions that also don’t rely on ChexSystems. Here are a few 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.
