Most people have never heard of ChexSystems, a little-known agency that can have major ramifications for those who have had issues with financial institutions. Like the credit-score system, ChexSystems logs financial indiscretions and can have an impact on future banking ties.
ChexSystems records negative transactions (e.g., failed checks, forced bank-account closures, and fraud). While the system does not score banking activity, a bad note might nonetheless be recorded in a client's financial history. However, some banks do not use ChexSystems to authenticate the financial history of new consumers.
Fortunately, there are still a few Delaware banks that do not utilize ChexSystems for verification. We'll look at some of these banks as possible choices if ChexSystems flags you.
GO2Bank is a pre-paid card service from Go Bank, and we believe it is a step in the right direction. Like the other young "challenger banks," GO2Bank will deposit your direct-deposit check up to two days early, and they offer cashback benefits on a variety of transactions. Your account also qualifies you for the GO2Bank credit card, which has no annual charge and requires no credit check. Cash deposits are accepted at 90K+ Green Dot stations nationwide. Your monthly maintenance cost of $5 is waived if you direct deposit $500+. They also have a good overdraft protection scheme—although there is a $15 fee if you don't replenish the cash within 24 hours.
GO2Bank is an online-only bank that can assist you with opening a checking account. GO2Bank does not employ ChexSystems; therefore, this financial federal credit-union bank is unquestionably a smart alternative if you have terrible credit. Account holders will value the opportunity to budget their money using a mobile app, budgeting tools, and a savings vault. GO2Bank pays 1% interest on every dollar saved in the vault, up to $5K.
Acorns is establishing a name for themselves as a long-term investment site, but what we appreciate is that they provide both checking and savings accounts, too. Best of all, Acorns does not approve accounts using ChexSystems or a credit report! As a result, Acorns Spend is yet another one of our favorite Second-Chance checking accounts. Acorns was created to compete with the major banks, and they provide several exceptional perks.
Acorns offers a Visa debit card and a world-class smartphone app to manage all elements of your new checking account (e.g., budgeting, spending, and security). The $3 monthly fee is easily offset by the ATM fee reimbursement and other perks that come with the account.
Acorns does not use ChexSystems. Acorns assists with saving, investing, and earning interest on your savings. Acorns also offers FDIC-protected online checking accounts with limits of up to $250K and fraud protection. If you've suffered bad credit or ChexSystems denials, then Acorns may be the account for you.
SoFi Bank is a checking and savings account on steroids. They do not use ChexSystems to authorise accounts.
You receive a debit MasterCard, as well as a nice smartphone app. You may deposit money, write checks, use electronic bill pay, and transfer funds. There are no monthly or overdraft charges. Furthermore, you get interest on all funds in the account! The sign-up procedure may be completed in less than 60 seconds. SoFi is a bank you can trust, with 2.5M+ members.
SoFi Bank is an online cash-management account that is a fantastic way to avoid ChexSystems. Users may earn 0.25% APY on accounts $500+. You will also get access to SoFi Bank member advantages (e.g., career counselling and financial advice).
If you do not have the funds to pay off your old, overdrawn bank accounts, then even institutions that specialize in Second-Chance checking may refuse to open a new account for you. Your ChexSystems record is kept on file for five years unless the information in the ChexSystems report is incorrect and you contest it. Even if you close your previous bank account, you must ensure that the bank writes a letter to ChexSystems requesting any negative information to be removed.