If you’ve been denied a checking account due to a negative banking history, you may find it difficult to access traditional banking services. ChexSystems is a consumer reporting agency that tracks your banking behavior, such as unpaid fees, overdrafts, and closed accounts. These records can remain active for up to five years, often making it more challenging to open new accounts during that time.
How ChexSystems Impacts Your Ability to Open New Accounts
With roughly 80% of banks and credit unions in the U.S. relying on ChexSystems, a negative report can severely limit your banking options. If you’ve had issues with overdrafts, unpaid balances, or account closures, these activities are recorded by ChexSystems and shared with banks.
As a result, banks may deny your application for new checking or savings accounts. However, not all financial institutions rely on ChexSystems, and some provide second chance accounts designed to help people overcome a troubled banking history.
Valley National Bank’s ChexSystems Policy
Unfortunately, Valley National Bank uses ChexSystems when reviewing checking account applications. This means that if you have a negative report, your application may be denied. While this can be frustrating, there are other banks that don’t rely on ChexSystems that offer more flexible options:
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.
