If you’ve been turned down for a checking account due to a negative banking history, you may feel discouraged. ChexSystems is a consumer reporting agency that collects information on your banking habits, including overdrafts, unpaid fees, and account closures. These records can remain active for up to five years, which can make it difficult to open new accounts during that time.
The Role of ChexSystems in Banking Decisions
Approximately 80% of banks and credit unions in the U.S. rely on ChexSystems to evaluate new account applicants. A negative ChexSystems report can lead to denied applications, limiting your options for opening new accounts. Despite this, some financial institutions don’t use ChexSystems, and others offer second-chance accounts to help individuals rebuild their financial standing.
Does Webster Bank Check ChexSystems?
Unfortunately, Webster Bank does use ChexSystems to review checking account applications. This means that if you have a negative report, your application may be denied. However, you still have options—there are plenty of banks and credit unions that don’t rely on ChexSystems to make account decisions.
Alternatives to Webster Bank
If Webster Bank isn’t a viable option for you, here are some great alternatives that do not rely on ChexSystems:
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.
