Opening an online checking account No ChexSystems can make you bankable again.
Online-only banking is here to stay. It’s convenient, hassle-free and safe. Plus, most online banks can offer higher savings interest rates and lower fees because they save tons of money by not having physical branches.
Many people shut out of banking are familiar with ChexSystems or Early Warning Services. Over 80% of banks use ChexSystems or Early Warning Services when deciding to open customer accounts. Having a negative banking history can be detrimental to financial growth.
The problems with ChexSystems reports
It goes without question that banks and credit unions must have a way to screen new customers for risk potential. But for some financial institutions, a negative account screening report results in an automatic denial of any account without considering the bigger picture.
Benefits of Online Checking Accounts
Benefits of an online checking account no ChexSystems ispretty much the same benefits of in-branch checking account. Just about everything you can do with a checking account in bank branches, you can do with an online checking account.
Here are several benefits:
- An online checking account can help consumers in ChexSystems because online management tools allow customers to see full account details at any time. With instant alerts and updates it is easier to keep up with transactions and avoid mishaps that may land consumers in ChexSystems.
- Not having to maintain a large network of branches means banks can pass the savings onto customers. Other perks are often also available, like ATM reimbursements.
- Online banks’ checking and savings accounts come with higher interest rates and fewer fees than those at traditional banks.
5 Banks to Consider for Online Checking Account No ChexSystems
BBVA offers an online checking account that does not use ChexSystems; however, BBVA utilizes EWS to screen customers. Customers enjoy Free ATMs at 64,000 AllPoint® Networks and BBVA ATMs where you can make check or cash deposits. Online banking is made easy with mobile check deposits, bill payment, money transfer tools, and account alerts — all directly from your smartphone, computer or tablet.
Plus, online customers get access to a dedicated team of professionals available via phone, email, and text. The Online Checking Account is free but make sure you deactivate the paper statements and opt-in to online statements to avoid the $3.00 per month fee. There is a $25 minimum deposit required to open the account that can be funded with a debit or credit card.
- Apply with only $25 opening deposit
- No Monthly Service Fee
- Complimentary Online Banking and Mobile Banking, Bill Pay and Online Statements
- No ATM withdrawal fees at any BBVA or Allpoint® ATM
- BBVA USA, Member FDIC
Chime spending account is free with no monthly fees, no overdraft fees, and no minimum balance requirements, and it does not take your ChexSystems information into consideration.
Account management is made simple with daily balance updates, instant transaction alerts, and automated bill paying, where the bank creates and mails a check at no extra cost.
- No monthly or overdraft fees
- No minimum balance requirements
- Daily balance updates
- Instant transaction alerts
- Get paid 2 days early with direct deposit setup
- Visa debit card
Bonus: Earn $50 when you receive a payroll direct deposit of $200 or more within the first 45 days of opening your Chime Spending Account!
With the SoFi Money Cash Management Account you can make deposits, write checks, utilize electronic bill pay and transfer money. There are no monthly fees or overdraft fees. Plus, you earn a competitive 0.20% APY on all deposits. The sign up process can take less than 60 seconds. Any U.S. citizen at least 18-years old can open a SoFi Money account.
The SoFi Money Cash Management Account is offered by SoFi Securities LLC, a FINRA registered broker dealer. There is no deposit requirement to open a SoFi cash management account, but you can earn a $75 cash bonus if you sign up for SoFi Money® and make two direct deposits of at least $500 each.
SoFi Cash Management Account Features
- No account fees
- Unlimited reimbursed ATM fees
- High-yield interest rate
- Access to SoFi member benefits like career coaching and financial advising
- Automated bill pay
- Easy P2P payments at no cost
- Freeze debit card on-the-go
- FDIC-insured deposits up to $1.5MM through the SoFi Money sweep program with partner banks.
If you have been denied a checking account because of past problems with ChexSystems or TeleCheck, this account may be for you.
- No monthly fees
- Get your paycheck early with direct deposit
- No fees for overdrafts of up to $50
- Cash deposits are through a third-party service that charges fees
If you have been denied a checking account because of past problems with ChexSystems or TeleCheck, this account may be for you. Requires a $30 opening deposit.
- NO minimum balance
- NO transaction fees for check writing or deposits
- FREE Online Banking, Bill Pay, and Mobile Banking
- ATM/MasterCard Debit Card eligibility
Banks can cause multiple overdrafts
Checking account reports mainly reflect account overdrafts or NSF transactions which make up the vast majority of account closures reported. Researchers in a study by Harvard Business School, estimated that only 2.5% of account closures are due to fraudulent activities; the remaining 97.5% are caused by overdrafts.
The problem with overdrafts is that the bank may hold some responsibility in causing multiple overdrafts based on one transaction. A report by the Pew Charitable Trusts found that 40% of the biggest U.S. banks surveyed, order transactions in a way that leads to increased overdrafts.
The overdraft fees were caused by the order in which the banks processed debit transactions — purchases, payments and withdrawals — in order from the highest amount to the lowest. Instead of processing transactions in the order that your bank receives them, banks can choose to process the biggest first, which brings your account balance down more quickly, leading to more overdraft fees. It’s unfortunate that a customer could end up with a ChexSystems or EWS record that was caused by the bank.
You deserve a new account.