Best Second Chance Banks That DON’T Use ChexSystems

The majority of banks and building societies use a system called ChexSystems, which allows the bank to screen your checking history. Learn about second chance banks that don't use ChexSystems.

Sunday, May 24th 2020 in Finance by Emily Snell
Best Second Chance Banks That DON’T Use ChexSystems

If you’ve ever been managed out of your bank, you’ll know that it can be a nightmare trying to get accepted with a new bank. It can feel like a permanent strike on your record when you get managed out of your bank, no matter what the reason.

The majority of banks and building societies use a system called ChexSystems, which allows the bank to screen your checking history – so if you’ve incurred charges every month, owe the bank money, or have endless returned direct debits, chances are, the bank you’re applying to will know about it.

Thankfully, there are some banks that don't use ChexSystems, which essentially gives you a second chance and a clean slate.


If you’re looking for a bank that will take you despite your bad credit or negative financial history, then CHIME is certainly a bank worth looking into. It’s the bank of choice for thousands and thousands of personal and business customers across the U.S, and people love the customer service and customer-orientated approach.

CHIME was created so customers could have financial peace of mind – it helps members get ahead by making managing money quick and simple. It’s super easy to apply for an account with CHIME – the award-winning mobile app is offered with no credit check, which is relieving to know if you have bad credit.

Even if you have the best credit in the world, CHIME would still be a great company to bank with. Unlike many other banks, CHIME doesn’t have any hidden bank fees – no overdraft fees, no monthly service charges, foreign transaction fees, and no minimum balance fees – which is always something to look out for when browsing banks.


Whether you’re a personal customer or a business customer, BBVA will most likely be happy to accept you as their customer. If you’ve got a big red cross on your banking records, then it’s definitely worth applying for an account with BBVA.

Although ChexSystems isn’t used in the application process, BBVA do use EWS (early warning services), which will give them a general idea of what kind of customer they’re taking on.

With many banks, there’s a minimum opening deposit for opening your account – and with BBVA, it’s a reasonable $25. Unfortunately, if you live in Alaska or Hawaii, this account won’t be available to you, so you’ll have to skip this section and move on to the next!

It’s the worst when you have to pay $3 to use an ATM – especially when you only want to take out $10! One of the big pros of this account is that you get free access to the AllPoint ATM network, which includes more than 64,000 ATMs throughout the country.

Their online banking is easy to navigate, and the mobile app is super convenient – you can’t really ask for much more from this no-frills bank account.

United Bank

If you reside in Maryland, Ohio, Pennsylvania, Virginia, West Virginia, or Washington DC, then you’re one of the lucky ones that can apply for a checking account with United Bank. Like many other banks, you can open an account with a $50 deposit, with no minimum balance requirements or monthly service fees.

For an additional $10 per month, you can upgrade your account to a rewards checking account. Most banks offer this scheme – you get cashback rewards and discounts at certain cinemas and theme parks.

IF you make 15 purchases per month or have at least $500 in regular deposits, this fee can be waived – which is something you should definitely take advantage of!

If you’ve been managed out of your previous account, United Bank is a great backup option as they don’t use ChexSystems at all.

Green Dot

If you’ve got poor credit and your banking history doesn’t look too good, then it’s not the end of the world, as there’s another option for you – prepaid debit cards.

When you sign up to Green Dot, you get a reloadable prepaid debit card, that doesn’t use ChexSystems to screen your checking history.

The CEO of Green Dot, Lewis Goodwin, claimed “Neither a ChexSystems score nor Credit Rating is used as the basis for determining customer eligibility”, which is certainly reassuring if you’re out of options.

This means that pretty much anybody over the age of 18 with a valid photographic ID can open an account and receive a prepaid debit card. With this card, you can make online purchases for free – but unfortunately, there are store purchase fees of up to $1.95, and card reload fees for $4.95.

This isn’t a fee-free account unfortunately, as there is also a $7.95 monthly fee to keep the account open and functioning. However, this fee is waived if you load $1000 and over onto the card during the previous charging period.

About the Author

Emily Snell

Emily is a contributing marketing author at where she regularly consults on content strategy and overall topic focus. Emily has spent the last 12 years helping hyper growth startups and well-known brands create content that positions products and services as the solution to a customer's problem.

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