17 Best Credit Unions That Don’t Use ChexSystems

Trouble Opening A Checking Account Due To Negative Chexsystem Reports?
Did you know that about 8 out of 10 financial institutions in the US use ChexSystems to determine your banking eligibility? It’s true! But unfortunately, most people only find out about ChexSystems when they try to open a checking or savings account and get denied.

… But What is ChexSystems?

ChexSystems is a consumer reporting agency and a check verification service owned by the eFunds subsidiary of Fidelity National Information Services. In simpler words: It is an agency that keeps a tab on people who have had past banking issues.

Opening checking accounts and utilizing checks for transactions can get tricky when one has a negative report in the ChexSystems database. And this is when the need arises to explore alternative options, such as credit unions and banks that allow for checking accounts despite having a negative ChexSystems report.

Our meticulous research has yielded a comprehensive compilation of 8 Credit Unions throughout America that do not use ChexSystems, alongside alternative options. Explore the results of our thorough analysis of over 150 checking account choices.

Credit Unions That Don’t Use ChexSystems

Let’s look at financial institutions, more specifically Credit unions that provide the opportunity to open checking accounts despite having negative ChexSystems reports and credit history.

Following are the 6 Credit unions confirmed not to use ChexSystems reports:

PenFed Credit Union 

Founded in 1935, PenFed Credit Union (Pentagon Federal Credit Union) is the second-largest federal credit union in the United States. With over 2.9 million members worldwide and $35.3 billion in assets as of April 28, 2023, PenFed offers a comprehensive range of financial services, including checking accounts, credit cards, personal loans, and more. As a federally insured institution under the NCUA and an Equal Housing Lender, PenFed Credit Union ensures security and equal opportunities for its members. 

According to the representatives at PenFed Credit Union, they do not rely on ChexSystems for reviewing member accounts. Instead, they utilize FICO scores to assess checking account applications. Their Free Checking account is designed to cater to individuals seeking to enhance their credit and attain financial stability.

Locations: 11 states, including Virginia, Texas, and Maryland

• Suggested account: Free Checking
• Monthly maintenance fee: $0
• Minimum opening deposit: $25
• Minimum balance required: $0
  

Additional features:

1. 24/7 digital banking options. 
2. Deposit checks easily using mobile deposit on your phone.
3. Over 85,000 fee-free ATMs nationwide
4. Get your paycheck up to 2 days early by setting up direct deposits.

California Community Credit Union

California Community Credit Union (CACCU) is a member-owned, not-for-profit financial institution. Since 1939, CACCU has served members a wide range of affordable low-interest loans, savings programs, online access, and numerous other products and services. Headquartered in Sacramento, CACCU is your trusted credit union in California. 

It offers numerous checking account types, including the New Beginnings Checking for those previously unable to get an account. Our team reached out to them, and according to their response, CACCU does not rely on ChexSystems for account approval. Instead, they may review your credit report.

Locations: Sacramento, Elk Grove, Modesto, and Roseville

• Suggested account: New Beginnings Checking account 
• Monthly maintenance fee: $15
• Minimum opening deposit: $25
• Minimum balance required: $0 if you apply for Regular ‘FREE’ Checking after a year.

Additional features: 

1. Free Online Banking, Bill Payer. & E-statements
2. Free ATM access at over 30,000 Co-op Network ATM

Navy Federal Credit Union

Navy Federal Credit Union, founded in 1933, caters to individuals actively serving or have retired from the Department of Defence (DoD), the armed forces, the national guard, and their families. Its account eligibility is primarily based on military service or a family relationship with a current member.

According to Navy Federal Credit Union representatives, they rely on Early Warning Services rather than ChexSystem reports to approve new applicants for opening accounts.

Locations: 343 physical branches across the east coast.

• Suggested account: Free Everyday Checking 
• Monthly maintenance fee: $0
• Minimum opening deposit: $0
• Minimum balance required: $0

Additional features:  

1. 0.01% APY1 and 0.01% Dividend Rate
2. Digital banking with Mobile Deposits* and Bill Pay
   
   

North Georgia Credit Union

Established in 1941 as the LeTourneau Federal Credit Union, it later became North Georgia Credit Union (NGCU) and broadened its membership to include various employee groups in the area. Membership is now also open to residents and employees of Stephens, Franklin, Hart, or Rabun counties. With over 11,500 members and $90 million in assets, NGCU offers a wide range of financial products and services, solidifying its market presence.

NGCU’s checking accounts are suitable for anyone who has had banking difficulties in the past since they don’t use ChexSystems reports for approving accounts. “No, we do not use ChexSystems reports to approve checking accounts; instead, we pull a credit report to review for approval,” they told our team when we contacted them.

Locations: Toccoa, Hartwell & Lavonia

• Suggested account: Checking account
  Requirements: To become eligible to apply for a checking account at NGCU, one needs to open a standard share/savings account first. Only the residents or employees of Stephens, Franklin, Hart, and Rabun Counties have the opportunity to open accounts at this Credit union.
• Monthly maintenance fee: $0
• Minimum opening deposit: $30
• Minimum balance required: $0
  
  

Additional features: 

1. No per-check fee
2. No-fee North Georgia Credit Union ATMs 
3. Free VISA Debit Card
4. E-Statements or monthly statements mailed
5. Free home banking & bill pay
6. Overdraft protection 
7. Direct Deposit & Payroll Deduction

Cardinal Community Credit Union 

Cardinal Community Credit Union operates as a financial cooperative, offering various financial solutions, including loans, investments, savings accounts, credit and debit cards, online banking, and other related services. They serve communities throughout the State of Ohio.

To become a member of Cardinal Credit Union, you are eligible if you reside, work, worship, or attend school in Lake, Cuyahoga, Geauga, Ashtabula, Portage, Summit, Mahoning, Trumbull, and Columbiana counties.

Even though they use ChexSystem reports for approving all checking products, the savings accounts they provide are opened without ChexSystems.

Locations: 7 physical branches in Ohio, including Mentor, Ashtabula, Austintown, Willoughby, Mayfield Heights & Lakeland

• Suggested account: The Savings (Share) Account 
• Monthly maintenance fee: $0
• Minimum opening deposit: $5
• Minimum balance required: $5

Additional features:  

1. Pays dividends with a minimum $100.00 average daily

State Department Federal Credit Union

State Department Federal Credit Union (SDFCU) extends membership opportunities to individuals affiliated with the Department of State. Founded in 1935 by eight United States Department of State employees, SDFCU has since expanded its membership to over 90,000 individuals worldwide, with assets exceeding $2.4 billion. With its headquarters in Old Town Alexandria, VA, SDFCU operates six branch locations to serve its members.

When applying for membership, SDFCU does use Chexsystems, and there is a hard pull on the applicant’s credit. SDFCU uses Experian to pull the applicant’s credit. In the case of a less favorable credit history, individuals have the option to apply for their ‘Regular Share Savings Account’ instead of a checking account.

Locations: 6 branches in total (3 in Virginia, 2 in Washington DC and 1 in South Carolina) 

• Suggested account: Regular Savings Account
• Monthly maintenance fee: $0
• Minimum opening deposit: $1
• Minimum balance required: $0

Additional features:  

1. Access to over 5,000 shared branches 
2. Nearly 30,000 free ATMs across the US through the CO-OP Network
3. Dividends can be earned
4. Easily transfer funds and access your account through the mobile app
5. Custodian/minor savings account options
6. Savings are federally insured up to $250,000

Additional Credit Unions Which Don’t Use ChexSystems

For writing these articles, our team conducts extensive research, which often includes reaching out directly to banks and credit unions to verify specific information. Regrettably, there are instances where these institutions decline to provide us with the necessary data to confirm details about them.

So below, you will find a list of credit unions that reportedly do not employ ChexSystems, based on information obtained not from the credit unions themselves but from reliable third-party sources.

Hope Credit Union

HOPE is a financial organization addressing barriers to prosperity based on race, gender, birthplace, and wealth. Since 1994, they have provided over $3.6 billion in financing and services, benefiting 2 million individuals in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.

HOPE has 23 locations across the Deep South to serve you. They are also part of the Shared Branching Network, enabling HOPE members to access and conduct financial transactions at over 5,000 credit union locations nationwide as if they were at a HOPE facility.

The Credit Union offers an ‘Easy Checking’ account for individuals new to checking accounts, rebuilding their banking history, or using payday lenders.

Locations: 5,000 credit union locations nationwide

• Suggested account: Easy Checking
• Monthly maintenance fee: $10 (waived with $200 minimum balance)
• Minimum opening deposit: $0
• Minimum balance required: $25

Additional features:  

1. Unlimited Paperless Transactions
2. 5,000+ branch locations nationwide
   

Langley Federal Credit Union 

Langley Federal Credit Union, also known as Langley FCU, is a credit union based in Newport News, Virginia. The institution is chartered and regulated by the National Credit Union Administration (NCUA). With 21 branches spread throughout the Hampton Roads area of Virginia, Langley FCU is a convenient and accessible choice for those seeking financial services in the region.

Locations: 20+ branches in Virginia.

• Suggested account: Smart Checking
• Monthly maintenance fee: $5 (reimbursed if the debit card is used once a month)
• Minimum opening deposit: $5
• Minimum balance required: $0

Additional features:  

1. Free debit card included with the account
2. Free mobile banking, online bill pay and eStatements 
3. Surcharge-free ATM network with over 55,000 ATMs.

Credit Unions That Do Use ChexSystems

Based on our research, certain credit unions do use ChexSystem reports for approving all their accounts. If you’re looking to avoid ChexSystem at this point in your banking journey, it is advisable to steer clear of the following credit unions.

Please note that the credit unions listed below are excellent options for all eligible applicants. We are not implying that they are not good choices; they simply aren’t the best choices for people with negative ChexSystem reports.

1. American Airlines Credit Union
   “We run Chex Systems for all of our share and checking accounts. Certain accounts require that a specific score to be met .”
   
2. Staley Credit Union
   “Yes, we pull a ChexSystems report for all accounts.”
   
3. America First Credit Union
   “We do use ChexSystems for all accounts.”
   
4. American United Federal Credit Union
   “We do in fact run ChexSystems to see what checking account you qualify for.”
   
5. Southwest Financial
   “Yes, we do use ChexSystems for checking accounts. Anytime we open a new account membership we will have to use ChexSystems.”
   
6. Excite Credit Union
   “All of our accounts run a ChexSystem report for approvals.”

7. Texas Trust Credit Union 
   “Yes, we do use them (ChexSystem reports) for all accounts.”
   
8. Los Angeles Federal Credit Union
   “A “ChexSystems” and hard-hit on your credit will be run.”
   
9. Consumers Credit Union
   “CCU does review ChexSystems information when approving new deposit accounts for new members.”
   

Banks: Alternatives (To Credit Unions) That Do Not Use Chexsystems

The following section presents a comprehensive list of reputable alternatives to credit unions, encompassing financial technology firms and banks, that do not rely on ChexSystems reports. 

PNC Bank

Pittsburgh National Bank, a part of the PNC Financial Services Group, is based in Pittsburgh. According to our correspondence with the bank, they do not rely on ChexSystems reports for account approval. Instead, they utilize ‘Early Warning Services’.

PNC Bank offers the ‘Foundation Checking account’ for individuals who have faced previous challenges in getting approved for a regular checking account. To apply, you must visit a PNC branch in person.

Locations: Available in all states except Alaska and Hawaii.

• Suggested account: Foundation Checking 
• Monthly maintenance fee: $5 (waived for individuals aged over 62 years)
• Minimum opening deposit: $25
• Minimum balance required: $0

Additional info: Cashier’s Checks and PNC Bank Visa Debit Card is included with the account. Overdraft and returned item fees are $0, and PNC Pay is available to facilitate seamless digital transactions.

Capital One

Capital One is a bank holding company headquartered in McLean, Virginia. They offer the ‘360 Checking Account’ suitable for individuals who have faced financial difficulties in the past and are looking to establish a positive credit history. 

This account is customized to meet specific needs and assist in establishing a strong financial foundation. You can open the account either online or in person at a Capital One branch.

Locations: 755 branches with headquarters in Virginia.

• Suggested account: 360 Checking Account
• Monthly maintenance fee: $0
• Minimum opening deposit: $0 (provided you make a deposit within 60 days)
• Minimum balance required: $0

Additional info: There are 70,000+ fee-free ATMs to choose from and no overdraft fees.

TD Ameritrade

TD Ameritrade operates as a brokerage firm, providing an alternative option for those looking for a checking account. To access their cash management account, individuals need to open and fund a brokerage account. TD Ameritrade may perform a soft credit inquiry during the application process but does not rely on ChexSystems reports for applicant assessment.

Locations: 16 states, including Texas, California, Colorado and Michigan. 

Suggested account: Cash Management account
Monthly maintenance fee: $0
Minimum opening deposit: $0
Minimum balance required: $0

Additional info: This account provides clients unlimited check-writing privileges and free recurring bill payments. Additionally, customers are eligible to receive a complimentary debit card free of cost.

For a complete list of all the banks that don’t use ChexSystem reports, Click here

Glossary

A credit union operates similarly to a commercial bank but differs by being a nonprofit cooperative owned by its members. Members are offered an array of financial products and services that emulate those of retail banks, such as deposit accounts, credit facilities, and other financial services.

A check verification service grants individuals or businesses the capability to ascertain the authenticity of the check or draft being submitted, as well as the option to corroborate the background of the account holder or both.

Consumer reporting companies compile data on individuals and create comprehensive reports about you to businesses. The information contained serves as a tool for assessing creditworthiness, eligibility for new bank accounts, insurance coverage, etc.

A checking account provides a convenient means of accessing your financial resources for day-to-day transactions while also ensuring the security of your funds. Customers have the ability to make purchases or settle bills via checks or a debit card. Different account options are available to prevent the monthly service fee.

A savings account is a secure bank option for depositing and saving money while earning interest. It’s a convenient way to accumulate funds for emergencies, expenses, or long-term goals. Savings accounts offer easy access to funds and potential interest earnings.