If you can relate, then you should know that it’s actually quite common that banks and other financial institutions reject new account applications due to applicants’ faulty banking records, and this might have very well been your case. Don't worry about it, we'll present you with the best available second chance bank accounts!

Why Was My Request to Open a New Bank Account Denied?

ChexSystems is a consumer reporting agency that may put your name on their blacklist if you’ve ever had a bank account closed as a result of not paying overdraft fees, or similar other banking mistakes. Most financial institutions use ChexSystems to determine whether to accept or decline a new application.

Synonymous to how your credit score and report will determine whether or not a given creditor will approve your credit card application, ChexSystems provides banks with a consumer report that allows them to determine if a potential account holder will be an asset or a burden. This is mainly to filter out irresponsible account holders who are likely to avoid paying bank fees.

Of course, if you are sure that you have a flawless banking record, then there might be a mistake on ChexSystems, or the reviewing financial institution’s end.

The Solution: A Second Chance Checking Account

If you’re looking to open a bank account online due to bad credit, or if you’ve been searching for a non ChexSystems checking account without much success, then look no more -- “second chance” accounts are alternative bank accounts for people on ChexSystems’ blacklist and they are the perfect solution for someone with a flawed banking record.

Just as the name suggests, these bank accounts have been designed specifically for people who need a second chance at proving that they can be responsible account owners. If they stay clear of fees and negative balances, most banks even allow their users to fix their banking history and upgrade to a regular checking account after 6-12 months.

To aid you further, we’ve put together a list of second chance banks that are worth considering:

BBVA is committed to giving users another shot at responsible banking. Residents of California, Arizona, New Mexico, Texas, Colorado, Alabama, and Florida, can enjoy the benefits of BBVA Compass’ ClearChoice Free Checking, ClearChoice Savings, and Easy Checking accounts, which are all second chance accounts.

Compass ClearChoice Free Checking Account

For more information by state, you can click here 

Compass ClearChoice Savings Account

For more information by state, you can click here.

Compass Easy Checking

For more information by state, you can click here.

Wells Fargo’s “second chance” option is its Opportunity Checking and Savings Account. This type of account was specially designed for customers with bad credit or banking records. More information about this option:

Fees to lookout for:

First National Bank and Trust Company also offers a “second chance” account for customers who are looking to restore their banking record. Their option is the Renew CheckingAccount. More information on this second chance account:

Fees to look out for:

For more information by state, you can click here.

Woodforest National Bank is another great second chance alternative for consumers inAlabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.

More information on this second chance account:

Fees to lookout for:

Although there are many fees tied to this account, you can upgrade to a more convenient account type after 6 months of good standing history. Click here to learn more about this account. 

If you apply for a regular PNC checking account, but aren’t approved, they will offer you a Foundation Checking Account. More information on this second chance account:

If none of these alternatives help, you can always look around locally. There are many community banks and credit unions that offer second chance accounts. Since these financial institutions aren’t as picky as the larger corporations, and since they are usually more interested in forming a personal relationship with their customers, you can always explain your position personally.

But, I Don’t Have a Bad Credit or Banking Record

No system is perfect, credit bureaus and consumer reporting agencies sometimes have data attached to a wrong name. So, if you believe there may have been a mistake, get the paperwork to back you up and try to clear up the misunderstanding. ChexSystems provides free consumer reports once a year. Consumers may request theirs with an online form available at their website, or by mail, phone, or fax.

You can also review this ChexSystems sample report to become familiar with the information contained therein. If you find proof that there has been an error, you can dispute the information with this form and request that ChexSystems looks into correcting the error

Lookout for Fees and Record All Financial Movement

As described on the list above, these options all entail several bank fees, so it’s worth doing your homework before choosing a second chance account. Go for the one that best fits your needs and is available in your area and monitor your account movement carefully to avoid unnecessary fees. On that same note, try to always have enough money in your account to cover for any mistakes.

Given that the majority of these alternative accounts offer mobile and online banking, you can easily check your balance whenever you wish. There are also many services out there that can help you control multiple accounts from one place, like LevelMoney, Mint, or You Need a Budget.

It is estimated that around 7% of Americans do not have access to a bank account. Do you belong to that category? Have recently applied unsuccessfully for a new bank account? If so, ChexSystems might very well be the reason why banks reject your application. So you may very well ask the question: what bank does not use chexsystems?

You can, of course, survive without a bank account, and many American households do just that. Many do it by choice, either due to distrust of the financial system or due to privacy concerns. But having at least one bank account can make life a lot easier indeed.

So what is this ChexSystems, and why look at banks without that service? And what banks don't use Chexsystem?

ChexSystems and Banks: A Brief Intro

We all have a fair idea of how the credit system works here in the US. You apply for a credit card or loan, and the lender checks your credit score. This score is kept by information collection agencies called "credit bureaus." Most lenders use scores from these three national credit bureaus to check your credit scores: Equifax, Experian, and the TransUnion. 

ChexSystems is a consumer reporting agency similar to these credit bureaus. But instead of your debt repayment history, it looks at how you handle your deposit accounts. It is estimated that nearly 80% of US banks use ChexSystems score to screen customers who apply for a deposit account.

With credit bureau scores, you at least have the chance of having a positive rating. So getting your name on their rolls can be a good thing for you. But with ChexSystems, it is all bad news, as they only keep a negative score. They are like the criminal records system maintained by the state and police: you are only in there if you have done something wrong.

The sad thing is that you don't have to do anything serious, like intentional fraud, to get your name in the ChexSystems records. It could be anything from unpaid fees/bills and overdrafts, to bounced checks. The system converts all these instances into a score, from 100 to 899. The lower your score, the worse your overall rating.

Alternative Banking Options: The "Other 20%."

If 80% of banks use the system, then it stands to reason that you have a better chance of getting a new bank account with the other 20% that do not use this system. These are credit unions and local/regional banks that do not use Chexsystems or telecheck.

Incidentally, all is not lost if you have a bad ChexSystems score. Yes, all the major banks do base their approvals on this score, but there are several who offer consumers some leeway. These banks provide the option of opening what is called a "second chance account." And it means exactly what it sounds like: you get the chance for a fresh start, but often without all the perks and services available for standard accounts.

15 Banks That Don't Use ChexSystems in 2017

This Alabama-based subsidiary of the European banking giant BBVA has a very lenient attitude towards people with troubled banking histories. They don't look at ChexSystems, and have a generous feature list that includes the following features:

Unfortunately, their online application is only available for residents of the following states- Alabama, Arizona California, Colorado, Florida, New Mexico and Texas. For residents of other states, another kind of online checking account is available, but with minor differences. Unfortunately, their services are not available in Alaska and Hawaii.

Not many top national banks offer second chance accounts. So if you have a bad ChexSystems score, Wells Fargo is your best bet at getting a new account in a bank with pan-US presence. This is one of the oldest and most famous banks in the US, with a broad national and global presence. When you apply, you will get an Opportunity Checking Account, which will thankfully provide every service that a basic checking account provides. It has the following features:

Headquartered in Pasadena, California, Green Dot is another option if you want a bank with a national presence. They do not look at ChexSystems score for screening purposes. In fact, they do not look at any major credit scores at all. You have two options with Green Dot:

A Green Dot Reloadable Prepaid Debit Card that functions as a regular bank account. You are free to add cash, withdraw cash, or spend it using the card. There are small fees involved. You can apply online for this card. 

A Go Bank Checking Account that can be applied for at WalMart, online, or through the Go Bank app. Sign up is free online, and there are monthly fees that can be waived by making direct deposits. No minimum balance or overdraft/NSF fees are required. 

This is one of the larger community banks in our list, with a regional presence that spans across 17 states, mainly in the South and the Eastern seaboard. They do look at ChexSystems, but for those with banking troubles in their past, they have a second chance checking account. There is no online option, and you will have to personally visit one of their branches to apply. The features include:

This option is exclusively for serving and retired members of our armed forces. If you have a service record in the Army, Marines, Navy, Air Force, Coast Guard, Army and Air National Guard, you are eligible to apply. Their services are also open to DOD employees and contractors, as well as family members of veterans/active personnel. If that includes you, then you have access to banking facilities that are available all over the US, in nearly 300 locations. 

This Credit Union does not check ChexSystems scores. You get access to a full package of banking and financial services, including a free checking account with zero minimum balance requirements. You will need to visit the local branch in person with all required records and documents to apply.

Capital One is a client of ChexSystems, and they do check your score when you apply. But as long as you have a positive credit score and haven't indulged in any serious banking fraud, they are willing to give you the benefit of the doubt. So they can be considered among the online banks that don't use Chexsystems. They are based in Virginia and have one of the largest banking systems in the US. So, even if you have a poor score, you should at least give it a try. Here the link to sign up. If eligible, you will get an online 360 Checking Account, which has some excellent benefits:

This regional bank, headquartered in Pittsburgh, is a real behemoth with branches in nineteen states and the District of Columbia. They are the fifth largest banking entity in the US regarding a total number of branches. They do use ChexSystems, but offer a second chance account, called Foundation Checking to their clients. But there is a small catch: you will have to apply in person, and then pass a 90-minute online course in Money Management. For all that trouble, you will get an account with the following features:

They are a small regional bank based out of West Virginia, with branches in West Virginia, Maryland, Ohio, Pennsylvania, Virginia and the District of Columbia. They don't bother too much about a bad ChexSystems score. If you are a resident of the states mentioned above, they can be a great option. You do get some nice features with their United Free Checking account:

Ameritrade is not a traditional bank, but a brokerage firm that offers online trading options in stocks, financial securities, and mutual funds. As a part of these services, they also provide lending and cash management services. The TD in their name refers to TD Bank, the largest shareholder. When you open a brokerage account in TD Ameritrade, you get the option to add checking account facilities. They come with the following benefits:

Now, this method is an indirect way to get access to a checking account facility. So far, there have been no indications that Ameritrade uses ChexSystems, but this situation may change in future. So please keep that in mind when you apply online for a brokerage account with them. 

They are a small Minnesota based bank, with branches in 380 locations in eight US states. If you are a resident of Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, South Dakota, or Arizona, they may be a good option to look at. They do look at ChexSystems, but as long you do not owe them any cash, you should be okay. They do take exception to poor EWS scores, if you are messed up on that front, this may not work out for you. Otherwise, their TCF Free Checking Account is quite good, with the following features:

They are regional bank based in Texas with services available in the states of Arizona, New Mexico, and Texas. Since they do not bother with ChexSystems, EWS or any other databases, if you have bank related troubles, they may be a great option. Though they are restricted to the three southern states, they have over 300 branches all across the region. There is an online application option, but the account does come with some minor restrictions:

They are Lowell, Massachusetts, based bank with over 120 years of operational history. This might be a good option if you have banking related troubles and stay in the state of Massachusetts. They only have two branches, one in Lowell and another in Dracut, MA. Despite being such a small bank, they do check your ChexSystems score.

But as long as you have no criminal history, or fraud related activities, and do not owe the system more than $2000, you can get their Online Rewards Checking Account. But you do need a direct source of deposit, either from your employer, or any government source. The account comes with:

They are a mid-sized regional bank with operations in eleven states, and headquarters in Cincinnati, Ohio. This is a bank without Chexsystem for their Express Banking service. They may be a good source for quick access to banking if you are a resident in any of the following states- Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, and Wyoming.The service comes with the following features and benefits: