There are many banks that don’t use ChexSystems to check someone’s bank history before allowing them to open a checking bank account. This kind of account may also be called a second chance checking account and it is quite helpful to have such an account even if you already have an account with a bank. Why do you need a second chance bank account? It is because your original checking account with a bank may have been frozen. This can happen when you make glaring financial mistakes and your credit score goes below accepted levels. Banks and credit unions who are members of ChexSystems often clamp down on bank accounts that may have created bad records because of non-payment of overdraft or any other similar issues.
Once this happens, you are not able to access your fund in the account for up to 30 days even though you have a positive history. This comes mostly without a warning. If you have all the money in the same account, it can be a difficult situation to deal with.
Is there a difference between non-ChexSystems and second chance banking?
While there are some common grounds between these two kinds of banking options, they are not exactly the same. While non-ChexSystems banks do not use ChexSystems to check your banking history and credit status, some of the second chance banking companies may check your history at ChexSystems. But they may offer you a second chance bank account even if your banking history or credit status has serious issues. They do so to give you a fresh opportunity to improve your history and credit status and enable you to get into mainstream banking. But they do it for a cost, as would non-ChexSystems banks do.
With both types of banks, you may have to pay a monthly fee while you may not be required to maintain any minimum balance. Both types of accounts may offer similar perks such as online banking, bill payment, and overdraft protection. With both, you have a chance to improve your history and get upgraded to a regular checking account. Here is a list with details of 12 best banks that don’t use ChexSystems in 2020.
12 Best Banks that Don’t Use ChexSystems
If you enjoy doing banking transactions on your smartphone, Chime is a good option as it is an online-only bank. Chimes is a non-ChexSystems bank so you can apply for an account without any fear of your bad credit or banking history. This again is a bank that does not ask for any monthly maintenance or overdraft fees. There is no fee to be paid even for opening for the account. Free ATM services are available to account holders at over 38,000 locations. To open an account, you don’t require any minimum deposit. However, there is a downside that you need to find a Green Dot location to deposit cash.
SoFi is another good option that does not resort to ChexSystems screening for opening an account. With their checking account, you can access a network of 55,000 ATMs for free. But SoFi does not have any physical branch. It does not charge any monthly account maintenance fee. It does not allow any overdraft and simply cancels such transactions. As a major distinction from other banks in its category, SoFi offers physical checks for free should you need them.
3. SunTrust Bank
SunTrust Bank is one of those banks that dont use ChexSystems to offer its checking account to customers. So, if you have less than an envious banking history, SunTrust Bank is a good fit for you. But you need to make a deposit of $100 to open an account. It also charges $7 as monthly maintenance fee. But there are ways you can get around the monthly maintenance fees. This is possible if you maintain $500 or more as daily collected balance. You can also get this waiver by direct deposits of $500 or more every month or by making at least 10 transactions every month. And if you are a student, you get the waiver by default.
4. Peoples Cash Solutions
Peoples Cash Solutions‘ Second Chance Checking Account comes with free online banking, and free paper checks. However, you need a minimum deposit of $30 to open the account. It also requires $4.95 as a monthly fee. It does not have an app as of now but you can use it to operate your account online over the web. Peoples Cash Solutions gives you a debit card and paper statements every month, both for free.
5. Renasant Bank
Renasant Bank is one of those banks that dont use ChexSystems or Telecheck or EWS. So, it’s a good choice for you if your not-so-impressive banking history is coming in the way of opening a checking account. With this bank account, you can make bill payment as well as all banking transactions online. You get unlimited check facilities as well as a free debit card. The minimum deposit to open a check account with Renasant Bank is $50 while you also need to pay $8 as monthly installment fee. However, your monthly fee can be waived if you maintain a minimum of $500 in daily balance or subscribe to eStatement.
BBVA is often rated as the top bank that does not use ChexSystems. It offers flexible and affordable online checking accounts without reviewing your credit status or banking history. What’s great? It does not cost you anything to maintain this account, neither maintenance fees nor minimum balance. BBVA has a list of quite a few freebies. This includes free online banking, bill payment, mobile deposits, unlimited checks, and free a Visa debit card. It is a non-ChexSystems bank but it uses EWS (Early Warning Services) to screen applicants for forgery, check fraud, and check kiting. However, these screenings do not stop someone being able to open an account despite a history of overdrafting and bad credit.
7. Navy Federal Credit Union
Navy Federal Credit Union is the biggest such entity in the country with over 8 million members. There is a strict criterion to join this credit union. This includes you should be from the military either reserve or active-duty. You could also be a military veteran or an employee or contractor of the Department of Defense. You could also be a family member of one of these people who meet the membership criteria. There is no monthly maintenance fee for your checking account. It has physical offices at over 350 locations. The members have free access to over 30,000 ATMs across the country. It charges $29 as overdraft fee but this is waived if your checking account is linked to a Navy Federal savings account and it has sufficient funds to cover the overdraft withdrawal.
8. First American Bank
First American Bank offers online banking services to its customers across all 50 states in the US. It also has physical offices in Florida, Illinois, and Wisconsin. It’s a traditional bank that uses no ChexSystems screening. However, to open a checking account, you need to make a minimum deposit of $50 while the monthly maintenance fee is $9.95. You are spared from maintaining a minimum balance, and you get free digital statements. You also get unlimited check facilities.
9. TD Bank
TD Bank has different kinds of checking accounts. But if you are trying to improve your banking history or credit, TD Bank’s Simple Checking Account is a good fit for you. It gives you free e-statement and needs no minimum deposit to open the account. However, you need to pay $5.99 every month as a maintenance fee. You are not required to maintain any minimum balance to keep your account going. As an account holder, you get a 0.25% discount on home equity loans and personal loans.
10. First Convenience Bank
First Convenience Bank is a part of First National Bank Texas. First Convenience Bank is again one of those banks that don’t use ChexSystems. It offers five different types of checking accounts: Power Checking, President Select Checking, Checking with Interest, eAccount, and Power Stash. The bank says that the Power Checking Account is the most popular among the 5 different account types. To open an online account, you need to make a minimum deposit of $20. But you don’t require this minimum deposit if you approach the bank in person to open the account.
The bank charges $12 for Power Account as a monthly fee. But for people aged 55 and above, the monthly fee is waived. A minimum $100 in daily balance or direct deposit every month also entitles you the waiver of monthly fee.
11. TCF Bank
TCF Bank offers its banking facility in Arizona, Michigan, Minnesota, Colorado, South Dakota, Illinois, and Wisconsin. It offers a free Checking Account with no monthly fee. However, you need at least $25 as initial deposit to open the account. Beyond this, TCF Bank’s charges are quite high. For example, it charges $37 as overdraft free.
12. Fort Sill National Bank
Fort Sill National Bank is now known by FSNB and it serves both defense personnel and civilians. Its Basic Account can be opened with a minimum deposit of $5. However, account holders need to pay $6 as a monthly fee. But if you maintain a balance of $75 or more, the monthly fee is waived. You get estatements for free while paper statements come for $3.50 per cycle.
Financial mistakes, bad banking history or bad credit are not the end of the world. There is a life beyond that. There are opportunities that will help you rebuild your banking history and credit. The banks in the list above are some of the best banks that don’t use ChexSystems in 2020. Grab the opportunity and start rebuilding your history and credit afresh.
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