Second Chance Banks That Don’t Use Chexsystems In 2024

Do you want to know Second Chance Banks That Don’t Use Chexsystems? Well, if your answer is yes, you’re on the right page.

You may have been denied an account because the bank reviewed your banking profile using a third-party agency called ChexSystems and saw a history of overdrafts, forced account closures, or unpaid fees.

ChexSystems provides banks with consumer scores to assess risk associated with account applicants. The information about closed checking and savings accounts stays on your ChexSystems record for five years. The lack of a clean banking history likely will result in you not qualifying for a standard checking account with all its conveniences and services.

The following guide explores all the Second Chance Banks That Don’t Use Chexsystems. But before that, we need to understand what Chexsystems is and why banks use it.

Let’s get started.

What Are Second Chance Banks?

People who have a negative banking history are often refused accounts by traditional banks. ChexSystems reports are used to determine if you have been charged with an overdraft fee, bounced checks, or engaged in fraudulent activity in the past. You will not be able to open an account if they think you are too risky.

That’s why second chance banks exist. Through this platform, traditional bank accounts can be provided to people who lack access to them (but desperately need them).

Once you’ve been using the service for a while, you may be able to upgrade to a traditional account.

What is ChexSystems?


EFunds, a subsidiary of Fidelity National Information Services, owns the ChexSystems bank reporting agency. According to the Fair Credit Reporting Act, the agency collects data about consumer banking activity and reports it to financial institutions.

ChexSystems maintains a historical report regarding your banking activity as a consumer. The ChexSystems report includes information about new and closed bank accounts, as well as negative activity like overdrafts and bounced checks.

A bank or credit union often uses ChexSystems to review your banking history when you apply for a new account and may deny your application if your report contains negative information.

There are some Second Chance Banks That Don’t Use Chexsystems or are more lenient about poor credit reports. Checking and savings accounts without ChexSystems are easier to qualify for if you have less-than-perfect credit.

How Does ChexSystems Work?

A bank or credit union will review a ChexSystems report for an applicant. In the most recent year for which data is available, over 80% of banks and credit unions use consumer reports from companies like ChexSystems or Early Warning Services to determine whether to approve bank account applicants, according to the National Consumer Law Center.

An application for a credit card is similar to the review process. A credit card issuer generally checks your credit with at least one major credit bureau. As a result, the issuer can determine if you might be a risky customer for a new card.

These individuals are shared with banks and credit unions, as well as whether the institution closed their account. This agency collects consumer histories and creates risk scores and reports for banks to use when considering potential customers.

How To Check ChexSystems?

Many banks use ChexSystems to find out more about you when you apply for a bank account. A ChexSystems report can be accessed free once every 12 months under the Fair Credit Reporting Act to see how institutions view your banking history. It contains everything in your ChexSystems file and is called a Consumer Disclosure Report.

The ChexSystems Consumer Disclosure Report is available online through the ChexSystems website or by mail. ChexSystems Consumer Score is a summary of your risk profile based on your report, which is also available to you.

Your bank history will appear in ChexSystems as follows:

  • An overdraft, non-sufficient funds activity, or a negative balance
  • A bounced check
  • Involuntary account closures
  • Account abuse, fraud, or identity theft suspected
  • Applications and inquiries related to accounts
  • Verify orders
  • Reports of other negative activities

ChexSystems can be disputed if there are errors or if you believe something should be removed. The law requires ChexSystems to investigate disputes and let you know the results. There are three ways to submit a dispute to ChexSystems: online, by phone, or by mail.

Second Chance Banks That Don’t Use Chexsystems

Here are some Banks that don’t use Chexsystem; choose wisely which fits your needs

Capital One 360 Checking


Capital One doesn’t use ChexSystems to screen applicants, so you don’t have to worry about a negative history preventing your application. A Capital One 360 Checking Account is an interest-bearing checking account with no minimums that you should consider if you want to avoid ChexSystems fees.

This account offers multiple overdraft options and the possibility of getting paid early up to two days in advance. A few Capital One branches and cafes are also available in select cities.

Savings accounts and CDs offered by Capital One 360 are also competitive, with high interest rates and easy requirements. Those who plan to withdraw cash or open other accounts should consider this checking account.

Capital One 360 Checking Features

  • There is no opening deposit required
  • There are no monthly or annual fees
  • No minimum balance or overdraft fees
  • You can add cash to your CVS® account.
  • ATMs all over the country are no-fee
  • Foreign transaction fees are not charged when traveling abroad
  • Pay bills and deposit checks using the smartphone app
  • Money can be sent and received with Zelle®
  • The ability to direct deposit early
  • CreditWise is Capital One’s credit score monitoring tool
  • A $250,000 FDIC-insured account

Capital One 360 Checking Pros and Cons


  • There is no minimum opening deposit or balance requirement
  • There is no monthly fee
  • The highest rated mobile app
  • Overdraft protection


  • ATMs branded by Capital One only (not partners)
  • The APY is not competitive with the top checking accounts



Chime is a financial technology company founded with the idea of making basic banking services more accessible and affordable. Second-chance bank accounts come without hidden or monthly fees or account minimums, like its other account options. Chime Checking Accounts, previously called Chime Spending Accounts, can help students save as they spend. Your Chime Savings Account gets credited whenever you use your debit card, and the difference is rounded up to the nearest dollar.

Chime Features

  • ChexSystems or credit checks are not required
  • There is no initial deposit required
  • A minimum balance is not required
  • There are no monthly or annual fees
  • NSF/overdraft fees are not charged
  • There are no foreign transaction fees
  • Over 60,000 ATMs are fee-free
  • Mobile and online bill payments are free
  • Thousands of Walgreens offer free cash deposits
  • Pay yourself up to 2 days early with direct deposit3
  • A $250,000 FDIC-insured account

Chime Pros and Cons


  • App with high ratings
  • Automated savings tools
  • Fees are few
  • Enjoy a two-day early direct deposit^
  • A fee-free overdraft of up to $200 is available with SpotMe®
  • 24/7 customer service is available


  • The account does not pay interest

Varo Bank 


Varo is a bank account application that allows customers to conduct branchless banking. Varos Bank is a popular neobank known for its innovative approach to digital banking and appealing benefits on a few products. This is a second-chance checking account that does not charge hidden fees or monthly fees. New applicants to its simple Online Bank Account are not subject to any fees, minimums, or a ChexSystems screening.

Varo Bank offers users fee-free access to 40,000+ ATMs via the Allpoint ATM network, as well as Zelle transfers through an app. Additionally, Varo offers its own peer-to-peer payment service, Varo to Anyone. The Varo support team is available seven days a week despite the lack of Varo branches.

Varo Bank Features

  • There is no minimum opening deposit.
  • There is no monthly fee.
  • There are 40,000 ATMs.
  • Do not use ChexSystems.
  • Out-of-network ATM withdrawal fee: $3.50
  • Withdrawals from an OTC machine: $2.50 (per transaction)
  • A deposit location may charge up to $5.95 for cash deposits made via third-party money transfer services.

Varo Bank Pros and Cons


  • Feature for early direct deposits
  • Fees are few
  • A Visa debit card with contactless technology offers cash back
  • There are more than 90,000 retail locations where you can deposit cash


  • Transaction fees for third-party ATMs are $3.50
  • Pays no interest



SoFi offers full-featured hybrid bank accounts without monthly fees, no minimum deposit requirements, and competitive rates across the board. SoFi Checking and Savings account applications are not reviewed by ChexSystems, and opening and maintaining an account is easy.

You can earn a respectable 0.50% APY on checking and 4.60% APY on savings when you set up direct deposit or make a deposit of $5,000 or more each month. The APY on savings balances for customers who do not meet this criteria is 1.20%. The SoFi Checking and Savings account also offers cash back, automatic roundups, overdraft protection, ATM access, and early direct deposits. A variety of member benefits are also available to SoFi members.

SoFi Features 

  • SoFi debit MasterCard is FREE
  • The app is free for smartphones. You can also manage your account online
  • There is no opening deposit required
  • There is no minimum balance requirement every month
  • There are no monthly maintenance fees
  • More than 55,000 ATMs are fee-free
  • Direct deposit allows you to get paid up to two days early

SoFi Pros and Cons


  • A competitive annual percentage yield
  • Fees are few
  • Deposits made early
  • SoFi debit cards offer cash-back rewards
  • ATMs with no fees in excess of 55,000


  • The highest interest rate can only be earned by direct deposit or deposits of $5,000 or more every 30 days
  • There is no separate checking account

Wells Fargo


Wells Fargo recently changed the name of the Opportunity Checking account to Clear Access Banking. There is one particular change we like. Wells Fargo has eliminated its overdraft and non-sufficient funds (NSF) fees. When you attempt to make a purchase without sufficient funds, your Clear Access Banking account will reject the transaction. It’s better to have the transaction approved than to discover you’ve overdrawn your account and have to pay $35.

Wells Fargo Features

  • U.S. branch with the most branches.
  • The account opening requires a minimum deposit of $25
  • Mobile app for online bill payment
  • The mobile deposit of checks
  • A Visa debit card is included
  • Money can be sent and received using Zelle
  • Your debit card also comes with account alerts, 24/7 fraud monitoring, and zero liability protection

Wells Fargo Pros and Cons


  • There is no minimum balance requirement on any checking account.
  • There is no overdraft fee for customers with overdraft protection, and for those without it, there is a grace period of one business day for shortfalls to be covered.
  • Student checking accounts with no monthly fees for 13-24-year-olds
  • Checks are free, ATM fees are waived, and loans are discounted for Premier Checking clients.


  • Overdraft fees are high, while competitors like Capital One and Bank of America have reduced or eliminated them
  • Many online banks with interest-bearing checking accounts offer lower deposit rates than Prime and Premier

Why Do Banks Use ChexSystems?

Banks use ChexSystems as a risk mitigation tool for the same reason credit scores are used for credit applications. A ChexSystems check checks your banking history for negative marks in order to alert banks quickly to any suspicious activity.

Banks may also view ChexSystems scores to determine your riskiness as a customer. The higher the ChexSystems score, the lower the risk, but institutions use the scores differently when reviewing applications. There are some who accept lower scores than others, and there are others who do not use scores at all.

Pros And Cons of Second Chance Banks

There are several benefits to second chance banks, but these accounts do have some drawbacks as well. The pros and cons of second chance checking accounts are listed below.


  • Allows clients to open a checking account even if their banking history isn’t perfect.
  • The account holder has time to rebuild their banking history and let the negative items fall off their ChexSystems report.
  • Checking accounts for second chances banks are often free, and no minimum deposit is required.


  • A few accounts may charge monthly fees and require minimum opening deposits, and waivers may not be available.
  • You may not be able to use paper checks or access overdraft protection with the account.
  • Balances in the account are unlikely to grow in interest.

Prepaid Cards vs. Second Chance Banking: Which is Better?

Prepaid Cards vs. Second Chance Banking Which is Better

A second-chance banking account is both more practical and more affordable than other options, such as check-cashing firms, payday loans, and pre-paid debit cards.

There are several catches and penalties associated with payday lenders and cards, even if you pay on time. Financial instrument categories in these categories have been ranked among the worst for customers.

The second chance banks checking account with a debit card from a bank is still the best option for most customers after weighing the pros and cons of each option. The cards are suitable for those who want to live a wholesome financial life. It is convenient and easy to add money to your checking account without paying additional fees. As a result, these cards provide client protection, as well as the freedom to invest your money right away.

Can You Fix Your ChexSystems Report?

ChexSystems can help you rectify negative information if it has been reported.

To begin, you need a copy of your credit report and score. By the Federal Credit Reporting Act, ChexSystems must provide you with a free copy of your credit report every year.

The next step is to dispute any inaccurate information caused by fraud, mistaken identity, etc.

As well as involuntary closures, bounced checks, etc., you can also settle any outstanding charges. However, the ChexSystems report will be updated to show that the account has been paid off, not the negative information.

How To Get A Copy of Your ChexSystems Report?

The ChexSystems website offers you the opportunity to obtain a copy of your consumer disclosure report online or by mail.

Consumers must also receive a free report from ChexSystems if they receive an adverse action notice, allowing them to check for errors.

There are three ways to dispute errors with ChexSystems: online, by mail, or by fax.

Your Social Security and driver’s license numbers, as well as other personal information, will be required to access your report. ChexSystems says it encrypts all the personal information it transmits over the internet.


What Are Second Chance Banks?

A second chance account is designed for people with less-than-perfect banking histories. ChexSystems records with negative items may still qualify you for an account.

What is A Second Chance Bank Account?

Second chance accounts can be opened regardless of your banking history. The downsides are monthly fees and no overdraft protection, but it allows people to get back into the game.

Can I Open A Bank Account if I’m in Chexsystems?

ChexSystems does not prevent you from opening a bank account, is the quick reply. ChexSystems history does not mean you won’t be able to open a checking account in the next five years if you have one.

What Is a Fresh Start Bank Account?

The Fresh Start checking account does not require a minimum opening balance, it has a low monthly service charge, and it allows you to write unlimited checks. Your regular banking can be resumed as soon as you have all the necessary information. There is no minimum balance requirement.

How Do I Remove Myself From ChexSystems?

The bank or collection agency can remove certain negative items, such as unpaid fees, from your ChexSystems report by paying the fees and requesting the bank or collection agency to do so. In addition, you can provide ChexSystems with proof that you have resolved the debt on your own. You will typically see items on your ChexSystems report for five years.

Can I Open A New Bank Account if I Owe Another Bank?

You may be prohibited from opening a new account if another bank owes you money. Your credit won’t be affected by opening a bank account, but you may still be rejected if you have had negative interactions with other banks in the past.

Who Needs A Second Chance Checking Account?

A second chance checking account may be needed if your bank canceled your previous account due to unpaid overdraft fees. It is also possible to need one if you bounced a few checks, owe fines, or have negative balances in your current or previous bank accounts. Researching “Which Banks Offer Second Chance Checking Accounts” could be beneficial in finding a suitable banking solution tailored to your needs.


Banks don’t deny account applications because of negative ChexSystems reports or low consumer scores. A better understanding of how the process works and your current account options can help you manage your money more effectively with Second Chance Banks That Don’t Use ChexSystems.