If you were denied a checking account or your bank closed your account, it might be due to a ChexSystems report. ChexSystems is used by many banks and credit unions to blacklist customers who have made banking mistakes like bounced checks, excessive returned checks, non-sufficient fund (NSF) charges, or too many transfers or withdrawals. Being on the blacklist can make opening a checking account difficult for five years.
Fortunately, there are banks that don’t use ChexSystems at all.
These “No ChexSystems Banks” offer all the services you need with surprisingly high acceptance rates. CreditInfoCenter.com has helped thousands of people find these banks based on acceptance rates, checking account features and benefits, and the accounts with the lowest fees. You can open an account today!
What are the Best Banks That Don’t Use ChexSystems?
- Best No Opening Deposit Bank: Chime
- Best Account to Build Credit: Current
- Best New Account Cash Bonus: U.S. Bank
- Strong Branch Network: Chase
- Best Business Checking: Found Banking
- Best Rewards Checking: Upgrade Rewards Checking Plus
- Best Fee-Free Account: SoFi
Found Business Banking | Our Favorite Business Account
One of the biggest challenges for small businesses, entrepreneurs, and gig workers is finding the right bank account for their growing business.
The Found Business Banking Account solves that problem by simplifying your financial journey. Available only to sole proprietors and single-owner businesses, the sign-up process takes only a few minutes. There’s no credit check or ChexSystems.
Found Business Banking at a Glance
- No opening deposit required
- No minimum balance
- No required monthly fees
- Free unlimited ACH payments
- Free unlimited invoicing
- Free mobile check deposits
- Free built-in expense management tools
- Accept bank transfers and card payments
- Easily connect to Quickbooks, Stripe, Venmo, PayPal, Etsy, etc.
- Get paid up to 2 days early with direct deposit1
- Send money to anyone within the U.S. using their phone number or email address
- Deposit cash at over 79,000 locations
- Access your account online or on the free app
- Found’s core features are free. They also offer a paid product, FoundPlus
Fast Approval Process
Time is money and Found respects both. Apply for your business account onlineand the streamlined approval process ensures you’re up and running quickly. No lengthy paperwork needed to get swift access to your financial hub.
Easy Bookkeeping and Tax Management Tools
Managing your business finances shouldn’t be a headache. You get intuitive tools such as automated expense tracking, receipt capture, unlimited custom invoices, and the ability to manage 1099 contractor payments. Plus, you get the ability to auto-save for tax payments and automatically generate tax forms.
No Hidden Fees, No Surprises
Say goodbye to unexpected charges. Found.com believes in transparency. They’ve stripped away unnecessary fees, leaving you with a straightforward banking experience. No hidden costs—just clarity and peace of mind.
Found is a financial technology company, not a bank. Business banking services are provided by Piermont Bank, Member FDIC.2
Chime | Over 7 Million Active Users
Fast-growing Chime® is one of our favorite checking accounts. The account has some amazing features and Chime accepts almost all customers who apply… even if you have bad or poor credit or have been blacklisted by ChexSystems or the credit bureaus.
Chime at a Glance
- NO credit check or ChexSystems
- NO initial deposit required
- NO minimum balance required
- NO monthly or annual fees
- NO NSF/overdraft fees1
- NO foreign transaction fees
- NO fees at over 60,000 ATMs2
- NO fees for mobile and online bill pay
- FREE cash deposits at 8,500+ Walgreens3
- Get your paycheck up to 2 days early with direct deposit4
- 700,000+ 5-star reviews for the Chime smartphone app
- Instantly transfer funds to friends and family without additional apps5
- FDIC insured account up to $250,000
Savings Made Easy
Chime was one of the first to offer a “round up” option. If you use your Chime card on a purchase of $10.65, Chime gives you the option of automatically rounding up to $11.00 and putting the remaining $.35 in your free Chime savings account. And that adds up over time! Plus, Chime pays 2.00% Annual Percentage Yield (APY)6 in interest on that savings account.
We don’t think there is another company innovating for their customers like Chime.
U.S. Bank | Earn Up To $700 Cash Bonus
U.S. Bank is the fifth largest bank in the country with the majority of its 2,000+ branches located in 26 states mostly located in the west and midwest.
You can earn up to $700 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account and complete qualifying activities. The offer is subject to certain terms and limitations and is valid through June 27, 2024. Member FDIC. Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
U.S. Bank Smartly® Checking at a Glance
- A U.S. Bank Visa debit card
- Online banking and bill pay
- Mobile banking and mobile check deposit
- Send money with Zelle®
- 24/7 customer support
- No NSF charges for overdraft balances under $50
- Access to U.S. Bank Smart Rewards® to reap additional benefits
- No fees at U.S. Bank ATMs
- No surcharge fees at 40,000 MoneyPass ATMs
States Where U.S. Bank is Available
If you live in one of the following 26 states where this account is available, you can apply online: AR, AZ, CA, CO, IA, ID, IL, IN, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, UT, WA, WI, WY.
Account Details and Costs
To get an account, you’ll need to make an opening deposit of $25. The monthly service fee is $6.95 but can be waived if you maintain a minimum balance of $1,500 or by having a combined monthly direct deposit totaling $1,000. You can also avoid the monthly fee if you are 24 and under, 65 and over, or a member of the military (must self-disclose) or qualify for one of the four Smart Rewards® tiers (Primary, Plus, Premium, or Pinnacle).
Banking Made Easy
The U.S. Bank Smartly® Checking account comes with one of the best mobile apps on the market. Over one million customers have given the app an overall rating of five stars. You can manage your entire account from a computer or your smartphone.
And there’s more to U.S. Bank than an outstanding smartphone app: 24/7 customer service, Zelle® instant transfers, free budgeting and automated tools, overdraft leniency, and Smart Rewards®. Perhaps that’s why U.S. Bank repeatedly makes the list of one of the best banks in the country.
Current | Build Credit While You Bank
Current offers an innovative account to consumers who want it all without the costs and hassles.
The Current Build account works just like a checking account but also helps you build credit every time you use the card. Sign-up takes about 2 minutes and Current has extremely high acceptance rates.
Current at a Glance
- NO credit check
- NO minimum balance
- NO deposit required to open an account
- NO fees at over 40,000 ATMs in the U.S.
- Get your paycheck up to 2 days early with direct deposit
- Earn 4.0% APY on your balance up to $6,000 with direct deposit; earn 0.25% APY without
- Earn points for unlimited cashback at participating retailers
- Send money instantly for free
- An elegant but simple smartphone app
- 24/7 member support
- FDIC insured account up to $250,000
Swipe The Card and Build Credit
Using your Current Build account to BUILD your credit is simple. Here’s how it works:
- You add money to your account
- Swipe your card to make purchases, pay bills, or get money from an ATM machine
- The funds in your account pay for these transactions
- Current reports your payment to build your credit history
Current Works Hard for You
Current offers a really unique service it calls Gas Hold Removals. What’s a gas hold? Some gas stations may apply a hold from $50 to $100 when you use your card to pump gas. If you only pumped $10 of gas, but the gas station places a $100 hold on your funds, you won’t have access to the $90 difference for up to 3 business days! The Current Build card will immediately refund the hold so you have access to all your funds. We haven’t found that benefit anywhere in the marketplace.
We love the features, we love the smartphone app, and we love Current. That makes us think you’ll love them too.
Chase Secure Banking | $100 New Account Bonus
Most people know Chase and with over 15,000 ATMs and 4,700 branches across the country, the Chase Secure Banking account might be a good fit for a second chance bank account.
Chase Secure Banking at a Glance
- NO credit check
- NO ChexSystems
- NO minimum deposit to open
- NO overdraft fees
- FREE access to over 15,000 Chase ATMs
- FREE Chase OnlineSMBill Pay
- FREE money orders and cashier’s checks
- Quickly send and receive money with Zelle®
- Paper checks are not offered with the account
Earning the $100 Bonus
To earn the $100 bonus, you’ll need to complete 10 qualifying transactions within 60 days of account enrollment. Qualifying transactions include debit card purchases, online bill payments, Chase QuickDepositSM, using Zelle®, or receiving ACH credits.
What to Know About the Approval Process
Chase Secure Banking is the only account offered by Chase that doesn’t use ChexSystems but does use Early Warning Services (EWS). Additionally, if you’ve had an account closed by Chase in the past, your application will not be approved. Past account closures can include missteps such as non-payment of fees, excessive overdrafts, or suspected fraud.
Fees
Chase doesn’t offer overdraft services with this account as you can only spend the money you have available. You should also know that using non-Chase ATMs can cost from $3.00 to $5.00 per transaction. Surcharges from the ATM owner/network may apply.
Chase Secure Banking carries a $4.95 monthly service fee, but it can be waived when you have electronic deposits made into the account totaling $250 or more during each monthly statement period.
Other Account Features
Chase Secure Banking offers several other features we like. This includes:
- Zero Liability Protection. Get reimbursed for unauthorized debit card transactions when reported promptly.
- Budgeting Tools. Manage your spending and get daily spending insights with Snapshot in the Chase Mobile® app.
- Credit and Identity Monitoring. Track your credit score, get a personalized action plan provided by Experian™ to help improve your score and receive identity monitoring for free through Chase Credit Journey®.
- Early Direct Deposit. Get that “just paid” feeling up to two business days sooner with early direct deposit.
If you’ve wanted to bank with Chase and wondered if you’d qualify, we think you’ll be happy with the Chase Secure Banking account.
Fifth Third Bank | Get $200 Bonus
The Momentum® Checking account from Fifth Third Bank offers a very attractive new account bonus. And with no monthly maintenance fee, no minimum deposit, and no minimum balance required, banking is simple.
Fifth Third Momentum® Checking at a Glance
- No initial deposit required
- No minimum balance required
- No monthly maintenance fees
- Send and receive money with Zelle®
- Extra Time overdraft avoidance
- Mobile alerts for transactions
- Get paid up to 2 days early when you enroll in Early Pay
- Access to more than 40,000 fee-free ATMs nationwide
- 1,200 branch locations
- Enjoy unlimited check writing
- Mobile and online bill pay and check deposit
Avoid Overdraft Fees
Fifth Third has an “Extra Time” overdraft feature where they provide an extra day for customers to cover any overdraft purchases that have hit their account. This feature provides you with some extra time to avoid overdraft fees and manage your account effectively.
Bank a $200 Bonus
Fifth Third will add $200 to your account when you make direct deposits totaling $500 or more within 90 days of opening your new account. Qualifying direct deposits include payroll, pension, or government payments such as Social Security. To receive the cash bonus, your checking account must be open and in good standing. Offer ends June 30, 2024. Member FDIC.
States Where Fifth Third Bank is Available
You can apply online if you live in one of the following 11 states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee, or West Virginia.
Paycheck Advances Through MyAdvance
MyAdvance is a cash advance service offered by Fifth Third Momentum that allows you to borrow a certain amount of money against your upcoming direct deposit. The fees for this service are based on your account’s age, and the amount you borrow will be deducted from your next direct deposit. This can be a useful option for covering unexpected expenses quickly and easily.
Opening a Fifth Third Momentum® Checking account is easy and takes only a few minutes. The combination of online banking tools, checking account features, and branch locations makes this a strong choice.
SoFi Checking & Savings | Earn a $325 Welcome Bonus
The SoFi Checking & Savings account is offered by SoFi Bank. It’s a checking AND savings account and we love that. Plus, they don’t use ChexSystems or your credit report to approve accounts.
SoFi Checking & Savings at a Glance
- FREE SoFi debit MasterCard
- FREE smartphone app. Manage your account online, too
- No opening deposit required
- No monthly minimum balance requirement
- No monthly maintenance fees
- No fees at 55,000+ ATMs
- Get paid up to two days early with direct deposit
How to Earn the $325 Bonus
As soon as you get your SoFi Checking & Savings account and deposit $10 or more, you’ll earn $25. When you set up direct deposit from an employer, SoFi will credit your account up to an additional $300 (depending on the amount of your direct deposit).
Using the SoFi direct deposit option unlocks additional benefits, too. First, if you overspend a bit, SoFi will cover up to $50 with no overdraft fees. Second, you’ll receive a much higher interest amount of 4.60% APY on savings account balances and .50% APY on checking account balances. If you decide not to utilize direct deposit, you’ll receive 1.20% APY on savings balances.
The sign-up process can take less than 60 seconds. With over 6 million members, SoFi is a bank you can count on!
SoFi has been great! The account was easy to open and I got my debit card a few days later. The smartphone app is easy to use and I can check everything from my computer, too. SoFi seems to be the perfect bank.
Claire M., SoFi Customer
Upgrade Rewards Checking Plus
Upgrade is a digital banking platform providing a range of financial services, including checking accounts, personal loans, and credit cards without annual fees.
Upgrade Rewards Checking Plus at a Glance
- Up to 2% cash back on purchases
- NO opening deposit required
- NO monthly maintenance fees
- NO minimum balance requirement
- NO NSF or overdraft fees
- Get paid up to 2 days early with direct deposit
- 10%-20% lower interest rates on loans & credit cards through Upgrade
- Earn up to 5.21% APY with a free Performance Savings Account
- FDIC insured account up to $250,000
Earning 2% Cash Back
The Upgrade Rewards Checking Plus lets you earn 2% cash back rewards with debit card purchases. Eligible expenses include:
- Convenience and drug stores
- Gas stations
- Monthly subscriptions, including streaming services
- Restaurants
- Utilities and cellphone services
All other purchases will earn 1% cash back. To earn the reward your account must be “active”. An active account is one that has a monthly direct deposit of $1,000 or more.
But if you choose not to or cannot meet the monthly direct deposit requirement, the account cashback program is reduced from 2% to 1%. In our view, that’s still a very strong offering with very few fees.
Consumers Love Upgrade
Managing your transactions is effortless, facilitated through either an intuitive online dashboard or the convenient Upgrade mobile app, available for both iOS (4.8 out of 5 rating) and Android (4.7 out of 5 rating) users. You’ll also have free access to your credit score and will be notified of any changes.
Not only is the Upgrade Rewards Checking Plus one of our favorites, but the account also has very high approval rates.
GO2bank
GO2bank is an offering of pre-paid card giant GoBank and we think it’s a step in the right direction. Like some of the newer “challenger banks” GO2bank will deposit your direct deposit check up to 2 days early and has cashback rewards on several categories of purchases. This account also makes you eligible for the GO2bank credit card, which has no annual fee or required credit check.
One significant drawback to many online-only bank accounts is that they have no way to accept cash deposits. But GO2bank accepts cash deposits at over 90,000 Green Dot locations nationwide. However, participating retailers may charge you a fee.
If you direct deposit over $500, your monthly maintenance fee of $5.00 is waived. And, they offer a pretty sweet overdraft protection program, but it has a gotcha charge of $15 if you don’t replace the funds within 24 hours.
Account-holders will appreciate the ability to budget their money with the help of a mobile app, budgeting tools, and a savings vault. In fact, they pay 1% on all money in the saving vault up to $5,000.
mph.bank Fresh Account
It’s a tall order to “Make People Happy” when it comes to banking, but that’s the stated mission behind mph.bank.
Powered by Liberty Savings Bank (established in 1889!), the mph.bank Fresh account does use ChexSystems, but as long as you don’t have more than 3 charge-offs totaling $1,000 or reports of fraud approval rates are very high. Fees for the account include a $9 monthly service fee and a $10 overdraft fee.
mph.bank Fresh Account at a Glance
- $0 initial deposit to open account
- Send and receive money with Zelle®
- Access your account with your phone or computer
- When coupled with a free savings account, earn up to 5.00% APY
- Optional ability to round up charges and stash the cash into savings
- Get paid up to 2 days early with direct deposit
- Access to over 55,000 fee-free ATMs
14 Additional Banks to Consider
Walmart MoneyCard
Want to earn cash back on Walmart purchases – up to $75 each year? Then you might love the Walmart MoneyCard.
It’s a debit card that has some strong features such as cashback on Walmart purchases, overdraft protection, interest on your savings, and a mobile app that lets you track your purchases and deposit funds into your account.
Walmart MoneyCard at a Glance
- Easy approval: no ChexSystems or credit check
- No initial deposit is required and there are no monthly minimums
- Deposit cash for free at any Walmart store and it shows up 10 minutes later
- Deposit checks using the Walmart MoneyCard smartphone app
- Easily request multiple cards for family use1
- Manage your account from your computer or the smartphone app
- 3% cashback on Walmart.com purchases, 2% cashback for Walmart fuel stations, and 1% cash back for use in-store2
- Earn 2.00% APY on money you set aside in a free savings account3
- With qualifying direct deposits4, you can opt-in and enjoy overdraft protection of up to $200 on eligible purchases5
- No monthly fee when you direct deposit $500+ in the previous monthly period. Otherwise, there’s a $5.94 monthly fee.6
The Walmart MoneyCard is available in all 50 states, Washington D.C., and Puerto Rico.
Lili | Quick Approval Small Business Banking
Lili was custom made for freelancers and independent contractors who are operating as sole proprietors and single member LLCs and we really like their offering. Lili aims to approve most accounts within 2-3 days, but some accounts are approved in 2-3 hours.
Lili offers a checking account and Visa debit card with no initial deposit or minimum balance requirement, no hidden fees, no credit check, and no ChexSystems. Lili makes getting your account easy!
Lili at a Glance
- FREE business VISA debit card
- FREE (and very user-friendly) mobile app
- NO minimum balance
- NO NSF charges or fees
- NO credit check or ChexSystems
- NO fees for incoming wire transfers
- Receive direct deposit funds 2 days earlier than many banks
- Mobile check deposit
- Unlimited fee-free transactions
- Takes 3 minutes to apply
Application Process
You can set up an account online. If you’re a freelancer, you should receive approval and account access almost instantly. All others (Sole Proprietor, Single-Member LLC, Multi-Member LLC, General Partnership, Limited Liability Partnership, or S Corp) can take a couple of days to get approved. You can fund your account using a mobile check deposit, direct deposit, ACH transfer, or by linking your Venmo, PayPal, or Cash App account.
GTE Financial
Go Further from GTE Financial helps put you on the path to a better checking account. If you don’t qualify for a traditional account, the Go Further account will help you get there in as little as 12 months. We consider this a low-cost second chance checking. As long as you make a total deposit of $500 for the month, opt to receive eStatements and make 15 monthly transactions, the $9.95 maintenance fee is waived.
GTE Financial is one of the largest credit unions in the US. Membership is open to anyone through easy requirements and an online application process. The Go Further account includes:
- Free EMV-equipped debit card with built-in rewards
- Online and mobile banking tools
- Free bill pay service
- Easy money transfers through the Popmoney service
GTE Financial is based in Florida, but anyone in the 50 states can open an account online for free.
Acorns
Acorns is making a name as a place to invest money for the long term, but what we really like is that they offer both checking and savings accounts. That makes Acorns another of our favorite bank accounts. As a company built to compete with the largest banks, Acorns offers some extraordinary benefits.
We love the heavy metal tungsten Visa debit card and the world-class smartphone app that allows you to manage every aspect of your new checking account such as budgeting, spending, and security.
Another nice option is the ability to round up on every purchase and Acorns will take that money and automatically put it in a savings account. This really helps build a nest egg.
It takes about 2-3 minutes to sign up and not only do you get a checking and savings account, but you also have access to an investment account once you’re ready to consider that. And, it’s free. Here’s more:
- FREEVisa® debit card
- FREE bank-to-bank transfers
- FREE physical check sending online or through the mobile app
- FREE mobile check deposits
- FREE access to 55,000+ fee-free ATMs
- NO minimum balance or overdraft fees
- NO credit check
- $3 monthly fee
- FDIC insured
Acorns was built to give everyone the tools to manage their finances which makes it one of our top picks.
Wells Fargo Bank
Wells Fargo changed the Opportunity Checking account to Clear Access Banking. And we like one change, in particular. Wells Fargo has done away with overdraft and non-sufficient funds (NSF) fees.
Clear Access Banking is a debit card-only account (no paper checks available) and if you attempt to purchase something without sufficient funds, the transaction will be denied. That’s a lot better than having the transaction approved and then discovering you’ve been hit with a $35 overdraft fee.
There is a $5 monthly fee, but that can be waived for account holders 24 years old and younger. This account is available to residents in all 50 states.
- The largest number of branches in the U.S.
- Minimum deposit of $25 to open an account
- Online bill pay and smartphone app
- Mobile check deposit
- Includes a Visa debit card
- Send and receive money through Zelle
- Additional features include account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card
BMO Smart Money
The BMO Smart Money checking account might be a great fit as long as you don’t have any previous incidences of fraud on your ChexSystems report. Approval is immediate and the process takes about 5 minutes.
If you’re 24 or younger, the account comes with no monthly fees. For those 25 and older, the monthly fee is $5 with no way to waive that amount. You can avoid a $2 monthly fee if you opt for paperless statements.
The account is available in all 50 states and Washington D.C. BMO has around 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Washington, and Wisconsin.
BMO Smart Money Account at a Glance
- Access to 40,000+ fee-free ATMs
- Send and receive money with Zelle®
- No overdraft fees
- No credit check
- Mobile check deposits
- $25 opening deposit required
NorthOne | No Credit Check Business Account
NorthOne is a digital bank built specifically for businesses with 1-10 employees. In addition to dramatically streamlining the application process, NorthOne offers a business checking account with no credit check.
NorthOne Business Banking at a Glance
- NO minimum monthly balance requirement
- NO monthly fees
- NO NSF fees
- NO ACH transfer fees. Highest ACH limits of any digital bank
- NO credit check or ChexSystems
- FREE access to over 40,000 ATMs nationwide for cash deposits and withdrawals
- FREE integrations with over 100+ popular tools
- FREE perks and discounts on SMB software – over $5,000 in value
- FREE bill payment software (replaces bill.com)
- FREE sales and revenue analytics software
Read More
Banking Services
NorthOne doesn’t have any recurring fees or require a minimum account balance. The account includes all business basics: ACH payments, wire transfers, bill pay, debit card usage, mobile check deposits, and transfers. The only fee is $15 for wire transfers. You can even send a physical check straight from your phone for just $1, and NorthOne will print and mail it for you.
NorthOne also has access to faster money movement through connecting to the Same Day ACH and Real-Time Payments network, the latter allows deposits from popular payment processors (Amazon, Paypal) to clear immediately.
Financial Automation
Layered on top of the bank account, NorthOne offers 3 powerful financial automation products. First, they offer a full invoice and bill payment automation, where you send your bills and invoices directly to NorthOne, NorthOne uses AI to extract everything you need to pay and to whom and sets up the payment for one-tap approval.
Second, they offer revenue and sales analytics, where you can connect to the e-commerce or POS tools you use and see your gross revenue, transaction volume, and cost of returns in every one of your accounts, in real-time.
Third, they offer integrations with hundreds of third-party apps including Paypal, Stripe, Square, Etsy, Shopify, Airbnb, Amazon, Venmo, Toast, Uber, Lyft, Quickbooks, FreshBooks, Wave, Expensify, and many more. You can sync transaction details, collect payments, see and pay invoices, send payroll, pay contractors, and more through these integrations.
Application Process
NorthOne approves accounts within one to two business days. Information required to open an account includes name, address, and social security number or tax identification number. If applicable, NorthOne may ask for a copy of your business license and business formation documents. After you’re approved, you’ll need to make a $50 minimum opening deposit.
In our opinion, the NorthOne no credit check business bank account is one of the most competitive business bank accounts for entrepreneurs and small business owners.
Navy Federal Credit Union
No matter your banking past, Navy Federal Credit Union offers traditional checking for all members across the US. With no review requirements of your banking history, NFCU is an excellent choice for active duty or retired US military, family members and government contractors. There are two banking choices to choose from: Active Duty Checking and Free eChecking.
Both account options come with a free NFCU debit card. There is no monthly service fee with direct deposit. Your account is protected from overdrafts with free savings transfers, a checking line of credit or an optional overdraft protection service. You also receive:
- Free mobile deposits
- Free bill pay
- Free traditional name-only checks
- Dividends credited monthly
Varo Bank
Varo Bank is another internet-only bank with services based on their mobile apps for Apple and Android devices. Varo doesn’t charge fees at 55,000+ Allpoint ATMs and offers strong budgeting tools and automatic savings programs.
Opening an account is easy and Varo doesn’t check your credit or use ChexSystems. Varo doesn’t even require an initial deposit to open an account, either. There are never any monthly maintenance fees, account balance minimums, overdraft fees, foreign transaction fees, transfer fees, or debit card replacement fees.
Varo’s recent bank charter has them innovating more than ever. They have a very strong cashback program, a payroll advance option, and have started to offer their customers a secured credit card called Varo Believe.
Finally, if Varo receives a payroll notification before your payday, it can deposit your money more quickly than many banks.
Discover Bank® Cashback Debit Checking Account
No. Fees. Period. That’s how Discover Bank promotes its Cashback Debit Checking Account. And, after conducting our research, we can say that’s mostly true. In fact, the only fees you’ll ever incur are for outgoing wire transfers and service charge fees if you use a non-Discover ATM if it is not part of the 60,000+ ATMs in their no-fee network.
As long as there are no past incidences of fraud on your ChexSystems report, Discover might be a great account for you. The only negative? There is no way to deposit cash directly into the account.
Discover Bank® Cashback Debit Checking Account at a Glance
- 1% cash back on up to $3,000 in debit card purchases each month
- Access to 60,000+ fee-free ATMs; $510 cash withdrawal limit per day
- Fee-free opt-in overdraft protection transfer service
- Get paid up to 2 days early with direct deposit
- Send and receive money with Zelle®
- No monthly fee (no balance or activity requirements)
- No fee for insufficient funds
- Mobile check deposits
- No deposit to open
Ally Bank Spending Account
Ally Bank has been one of the most highly rated online banks for the past several years. It’s not because they have the most features, but because they consistently make their customers delighted with the features the bank offers.
For starters, there’s no minimum opening deposit required. Ally doesn’t charge any monthly maintenance fee and there is no overdraft fee (more on that below). You’ll have access to 43,000+ ATMs and Ally will reimburse you up to $10 per statement cycle if you get charged for using another institution’s machine.
You’ll become eligible for Ally’s overdraft program called CoverDraft 30 days after depositing a total of $100. Ally will activate CoverDraft automatically and send you an email when they do. You can turn CoverDraft off at any time, as long as your account balance isn’t negative. Otherwise, Ally will decline the transaction without payment. In either case, you won’t be charged an overdraft fee.
We like that you can use Zelle to send and receive money, get paid up to 2 days sooner with early direct deposit, and deposit checks remotely with Ally eCheck Deposit. We also like that Ally has high approval rates as long as you don’t have a ChexSystems or EWS fraud alert in your past.
Citibank Access Checking
The Citi® Access Checking account is a solid option if you’ve been blacklisted by ChexSystems or Early Warning Systems. As long as you haven’t been flagged for fraudulent behavior and don’t owe Citibank an outstanding amount, approval rates for this account are good.
There are no monthly service fees for the first 3 months after opening the account. The $5 monthly service fee can easily be waived after that time by depositing at least $250 per month.
We also like that there are no overdraft or returned item fees because if you don’t have enough money in your account, the item will be returned.
Citibank Access Checking at a Glance
- 65,000+ fee-free ATMs
- Send money to almost anyone with a U.S.-based bank account through Zelle®
- No overdraft or NSF fees
- $5 monthly fee can be waived with $250 in qualified direct deposits
- $0 liability for unauthorized charges
- Available in all 50 states and Washington DC
- No minimum opening deposit
Capital One 360 Checking
The Capital One 360 Checking Account uses a proprietary approval process that does not include ChexSystems and might be a solid option for those who have had past financial challenges.
Available in all 50 states and the District of Columbia, Capital One acts more like an online bank than one with over 400 branches in a few states. Its highly-rated smartphone app gives customers full control of their account and you can access everything from a computer, too.
Capital One 360 Checking at a Glance
- No opening deposit is required
- No monthly or annual fees
- No minimum balance and no overdraft fees
- Add cash to your account at CVS® locations.
- No-fee access to over 70,000 ATMs nationwide
- No foreign transaction fees when traveling abroad
- Deposit checks and pay bills with the smartphone app
- Send and receive money with Zelle®
- Early direct deposit feature
- Monitor your credit score with Capital One’s CreditWise feature
- FDIC insured account up to $250,000
How The Overdraft Feature Works
The account offers two overdraft services. The first is a free savings transfer where you link your checking account to a savings account. If you overdraw from your checking account, Capital One will cover the charge by making a transfer from your savings account.
The second option is a no-fee overdraft where the bank approves recurring debit payments, check payments, or bill pay payments even if it results in a negative balance for your account. To qualify, you’ll need to receive at least $250 in direct deposits during two of the three previous months.
Customer Service
In the era of chatbots and customer service-by-email, Capital One stands out for its personalized customer service. Once you set up an online account, you can chat 24/7 with a live customer service representative. If you want to speak with a representative on the phone, you can call between 8 a.m. and 11 p.m. Eastern Time.
The website is laid out well and easy to understand. The smartphone app is also easy to navigate and has received 4.9 out of 5 stars in the Apple store and 4.6 out of 5 stars in the Google Play store.
United Bank
United Bank does not use ChexSystems or a credit report when you apply for their Essential Checking account.
Essential Checking has no overdraft fees and no minimum balance requirements. All you’ll need to get started is a $25 opening deposit. You’ll also gain access to their mobile smartphone app where you can deposit checks and monitor your account.
There is no monthly fee for customers 25 and under. For customers 26 years of age or older, there is a $5 monthly fee with eStatements and a $7 monthly fee if you want paper statements.
You can apply for a United Bank checking account if you live in Washington D.C. or one of the following 7 states: Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, or West Virginia.
What is ChexSystems?
Most consumers aren’t familiar with ChexSystems until they’re denied a new bank account or a merchant declines to accept their check. Briefly, ChexSystems is a consumer reporting agency (CRA) that tracks your checking and savings account activity.
Its business is pretty simple. Banks contribute data about all of their checking account customers. For consumer accounts, the social security number is the key identifier. Banks also contribute information about the health of these accounts. If a consumer has bounced a lot of checks or has unpaid fees, the bank will also report that information to ChexSystems.
Then ChexSystems creates an aggregated database not only from the bank in our example but from more than 80% of all remaining banks and credit unions. ChexSystems holds this information on over 300 million people and companies!
If you have negative marks entered by a bank, that information is available to EVERY bank and credit union that subscribes to the ChexSystems database. And all any bank or credit union needs in order to check your banking history is your social security number. A social security number is required to set up a checking account.
What causes people to get reported to ChexSystems?
People get reported to ChexSystems when they have problems with their bank accounts, such as:
- Bouncing checks or having insufficient funds to cover transactions.
- Not paying overdraft fees or other account fees.
- Misusing or abusing their accounts, such as using them for fraud or illegal activities.
- Having their accounts closed by the bank for negative reasons.
Can I dispute items on my ChexSystems report?
Yes, you can dispute items on your ChexSystems report if you have concerns about their accuracy. Under the Fair Credit Reporting Act (FCRA), as a consumer, you have the right to challenge any information that is incorrect or incomplete in your credit reports, including those from ChexSystems.
However, it’s important to note that disputing ChexSystems reports can sometimes be a challenging process, especially if the information on your record is accurate. For example, if you were added to ChexSystems due to a minor infraction such as failing to pay a small overdraft fee, simply requesting the removal of the record may not be sufficient to get it expunged from your report.
It’s essential to keep in mind that ChexSystems is not necessarily concerned with fairness or the relevance or currency of the information it holds. If a record is on file, it typically remains there for a period of five years from the date of the infraction unless your dispute is successful.
Therefore, while you can dispute items on your ChexSystems report, it is important to gather evidence and present a strong case to support your claim. This may involve providing documentation or proof that the information is inaccurate or incomplete.
To initiate a dispute with ChexSystems, follow these steps:
- Contact ChexSystems: Reach out to ChexSystems and request a free copy of your ChexSystems report. This report will provide you with detailed information regarding your banking history and any negative records.
- Review the report: Carefully review the report for any inaccuracies or incomplete information that may be harming your banking history. Make a note of these erroneous records or incomplete information.
- Gather evidence: Collect all necessary evidence that supports your dispute. This can include bank statements, receipts, or any other relevant documents that prove the inaccuracy or incompleteness of the information.
- Draft a dispute letter: Write a formal letter to ChexSystems, clearly outlining your dispute and supporting it with the gathered evidence. Explain why you believe the information is incorrect or incomplete and provide any additional relevant details. Keep a copy of this letter for your records.
- Submit the dispute: Send the dispute letter to ChexSystems through certified mail with return receipt requested. This ensures proof of delivery and gives you a record of the dispute being initiated.
- Maintain records: Keep copies of all documents, including the dispute letter, supporting evidence, and any communication received from ChexSystems. These records will be crucial throughout the dispute process.
- Wait for a response: ChexSystems is required to investigate your dispute within 30 days of receiving your letter. They will then provide you with a written report detailing their findings.
- Review ChexSystems’ response: Carefully review the response provided by ChexSystems. If they agree that the information is incorrect or incomplete, they will correct or remove the record from your report. If they disagree with your dispute, you have the option to add a statement to your report explaining your side of the story.
- Apply for a non-ChexSystems account: Regardless of the outcome, it is advisable to consider applying for a non-ChexSystems checking account while waiting for the dispute process to resolve. This will ensure you have a functioning bank account during this time. Keep in mind that the dispute process can be time-consuming and may take several weeks or even months before your record is cleared.
By following these steps, you can initiate a dispute with ChexSystems and work towards resolving any inaccuracies or incomplete information in your report.
What is the difference between banks that don’t use ChexSystems and second chance banking?
The difference between banks that don’t use ChexSystems and second chance banking lies primarily in their approach to reviewing an individual’s ChexSystems record when applying for a bank account.
Banks That Don’t Use ChexSystems:
When you apply for a bank account at these banks, your ChexSystems record will not be checked. This means that they do not consider any negative history or issues you may have had with previous bank accounts when deciding whether to approve your application. Usually, these banks have low or no balance requirements, though they may require monthly maintenance fees. However, you can still enjoy typical banking services like online banking and bill pay. Overdraft protection may also be offered.
Second Chance Checking Account:
On the other hand, second chance banking involves a more thorough evaluation of your ChexSystems record. Generally, these banks will review your history with previous bank accounts, which may include any overdrafts, bounced checks, or account closures. While some maintenance fees may be required, second chance banking also provides an opportunity for individuals to rebuild their banking history and regain trust. This means that as you establish a positive track record with a second chance account, you may eventually be eligible for a regular checking account. It’s worth noting that because second chance banks do check your ChexSystems report, they might have additional requirements. For instance, they may ask you to complete a personal finance class.
Both banks that don’t use ChexSystems and second chance banking offer individuals the ability to resume vital banking activities such as writing checks and using a debit card for purchases. While there may be minor distinctions between the two, both options serve as alternatives for people with a less-than-perfect banking history.
How many banks and credit unions in the US use ChexSystems?
According to eFunds, ChexSystems is utilized by more than 9,000 banks across the United States for screening purposes. These banks collectively operate over 100,000 branches nationwide. Impressively, the number of banks employing ChexSystems accounts for more than 80% of all financial institutions in the country.
Do banks and credit unions sometimes review credit reports when deciding whether to approve a bank account?
Yes, when individuals apply for a bank account, it is possible for certain banks and credit unions to evaluate their credit report by accessing information from major credit bureaus like Equifax, Experian, or TransUnion. The purpose of this assessment is to aid in the decision-making process regarding the approval of the bank account application and to potentially establish specific conditions, such as determining deposit limits, minimum balance requirements, or applicable fees. While it is not a widespread practice, it is worth noting that some financial institutions may choose to consider a prospective customer’s credit history as part of their overall evaluation process.
Do non-ChexSystems banks still review other records like TeleCheck or Early Warning Services?
Yes, some non-ChexSystems banks may indeed review other records, such as those maintained by TeleCheck or Early Warning Services (EWS). It is important to note that being listed with either TeleCheck or EWS might result in the rejection of a bank account application, even if the applicant does not have any issues with ChexSystems. However, it is worth mentioning that there are banks that do not reference any of these additional systems. Therefore, it is possible for individuals to have a record with ChexSystems but not with EWS or TeleCheck.
Best Second Chance Banks by State
To find more information and additional options available in your area, select your state from the list below and explore your options.
Ready for Your Second Chance?
If you’ve experienced issues with bad credit, checking account issues, or bounced checks, CreditInfoCenter can help you get back on track toward a healthy financial future. Our goal is to guide you through the complex financial roadmap to find the banks or credit unions that can best meet your needs.
The vast majority of the time, you can get a bank account with ALL the features and benefits you need with no fees, minimums, or restrictions. We’re glad you found us. Now, let us help you find the right financial partner for you.
Additional Chime Disclaimers: Back to Chime ReviewChime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1Eligibility requirements apply. Overdraft only applies to debit card purchases and cash withdrawals. Limits start at $20 and may be increased up to $200 by Chime. See chime.com/spotme.
2Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Cash deposit or other third-party fees may apply.
3Customers are limited to three $1,000 cash deposits at Walgreens each day and $10,000 each month.
4Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
5Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. Once you are approved for a Chime Checking Account, see your issuing bank’s Deposit Account Agreement for full Pay Anyone Transfers details. Please see the back of your Chime debit card for your issuing bank. See Terms and Conditions.
6The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Additional Found Disclaimers: Back to Found Review
1Direct deposit funds may be available for use for up to two days before the scheduled payment date. Early availability is not guaranteed.
2Found is a financial technology company, not a bank. Business banking services are provided by Piermont Bank, Member FDIC. The funds in your account are FDIC-insured up to $250,000 per depositor for each account ownership category. The Found Mastercard Business debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc. and may be used everywhere Mastercard debit cards are accepted.
Additional Walmart MoneyCard Disclaimers: Back to Walmart Review
1Family Accounts: Activated, personalized card required. Other fees apply to the additional account. Family members age 13 years and over are eligible. Limit 4 cards per account. See Deposit Account Agreement for details.
2Cash back, up to $75 per year, is credited to card balance at end of reward year and is subject to successful activation and other eligibility requirements. Redeem rewards using our website or app. You will earn cash back of three percent (3%) on qualifying purchases made at Walmart.com and in the Walmart app using your card or your card number, two percent (2%) at Walmart fuel stations, and one percent (1%) on qualifying purchases at Walmart stores in the United States (less returns and credits) posted to your Card during each reward year. Grocery delivery and pickup purchases made on Walmart.com or the Walmart app earn 1%. For the purposes of cash back rewards, a “reward year” is twelve (12) monthly periods in which you have paid your monthly fee or had it waived. See account agreement for details.
3Interest is paid annually on each enrollment anniversary based on the average daily balance of the prior 365 days, up to a maximum average daily balance of $1,000, if the account is in good standing and has a positive balance. 2.00% Annual Percentage Yield may change at any time before or after account is opened. Annual Percentage Yield is accurate as of 5/15/23.
4Direct Deposit: Early availability of direct deposit depends on timing of payroll’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. Make sure the name and social security number on file with your employer or benefits provider matches what’s on your Walmart MoneyCard account exactly. We will not be able to deposit your payment if we are unable to match recipients.
5Opt-in required. $15 fee may apply to each eligible purchase transaction that brings your account negative. Balance must be brought to at least $0 within 24 hours of authorization of the first transaction that overdraws your account to avoid the fee. We require immediate payment of each overdraft and overdraft fee. Overdrafts paid at our discretion, and we do not guarantee that we will authorize and pay any transaction. Learn more about overdraft protection.
6No monthly fee with qualifying direct deposit, otherwise $5.94 a month. Waived when $500+ is loaded in the previous monthly period. First monthly fee occurs upon first use, the day after card activation or 90 days after card purchase, whichever is earlier.
