List of Credit Unions That Don’t Use ChexSystems in 2024

Trying to open a checking or savings account is usually straightforward, but not if one has a negative banking history revealed by ChexSystems.

However, what exactly is the ChexSytems, and are there credit unions that don’t use it? Find out here.  

What is ChexSystems?

Chexsystems is a consumer reporting agency. Banks and credit unions use this to check whether their potential customer has any harmful banking activities such as: 

• Overdrafts
• Bounced checks
• Unpaid negative balances
• Suspected cases of fraud

Bank databases retain Chexsystems reports for 5 years or more. As a result, many financial institutions and credit unions are veering away from it as they are losing many potential customers.

They can open accounts in what people often call “second chance checking accounts” or those that do not use ChexSystems. However, some institutions may charge higher monthly fees and require users to set up direct deposits. Nevertheless, many users have found them very reliable.

5 Credit Unions That Don’t Use ChexSystems

While many financial institutions use ChexSystems, others do not. These include the following:

Navy Federal Credit Union

To apply, you must be a member of the armed forces, whether on active duty, retired, or a veteran. The NFCU is one of many credit unions that don’t use ChexSystems. They offer checking and savings accounts, certificates of deposit (CDs), money market, retirement savings accounts, and many others.

Requirements:

• Social security number
• Current home address
• Driver’s license or government ID
• Credit card or bank account
• Routing number to fund one’s account

They also provide a wide variety of lending products, such as personal, auto, home, and student loans, at competitive interest rates and credit cards. Customers will also have access to the following:

• More than 300 branch locations nationwide
• Thousands of free ATMs
• Mobile banking
• Online banking

These and more make up for their outstanding customer service.

State Department Federal Credit Union

You can open an account with the State Department Federal Credit Union (SDFCU) if you have the following:

• Affiliation with the Department of State
• Organizational affiliates
• Family relation
• Membership of the American Consumer Council

The SDFCU offers low rates for checking, savings, youth accounts, credit cards, and various lending products. It takes just $1 deposited into a savings account to start one’s membership, which they will provide.

Requirements:

• Home address
• Social security number
• Driver’s license or identification card

Consumers Credit Union

What’s good about Consumers Credit Union is that they have no monthly maintenance fees or minimum balance requirements. Plus, you can also write unlimited checks.

If you are going to open a checking account, their Rewards Checking Account earns up to 5% APY on balances up to $10,000 and offers unlimited ATM fee reimbursements. You can also easily access your account through mobile and online banking. Users also have access to over 30,000 ATMs and 5,000 branches.

They also have an early direct deposit feature where users can get paid as much as two days early. This feature is helpful if you live paycheck to paycheck or must pay your bills on time.

Southwest Financial Federal Credit Union

Southwest Financial Federal Credit Union is another credit union that doesn’t use ChexSystems. They offer checking, savings, and retirement accounts, and also have the following several lending products:

• Home loans
• Home equity loans
• Personal loans 
• Hassle-free loans
• Credit builder loans

Although Southwest Financial’s headquarters are in Dallas, Texas, clients can join from anywhere, thanks to its 100% virtual services. Customers can easily log in to their ebrand accounts to view their accounts, transfer money, and pay bills.

It is also easy to use their mobile app, and customers can access 55,000 Allpoint ATMs worldwide. 

Staley Credit Union

The state of Illinois charters Staley Credit Union. It caters to customers in the said state as well as Indiana and Tennessee.

With any of their accounts, you can access the following:

• over 30,000 free ATMs nationwide
• 24/7 access via online and mobile banking
• free bill pay
• a contactless debit card

Take note, though, that if you want to open a Renew Checking Account, there is a $50 minimum deposit required and a $7 monthly maintenance fee.

Cardinal Community Credit Union

Cardinal Credit Union is a proud 5-star-rated credit union, recently awarded by Bauer Financial, a renowned financial rating agency in the country.

They offer the following services: 

• checking accounts
• savings accounts
• multiple loan options
• and credit cards

The Cardinal Credit Union caters to members of the following Ohio counties: 

• Lake
• Cuyahoga
• Geauga
• Ashtabula
• Portage
• Summit
• Mahoning
• Trumbull
• Columbiana

To open an account, you’ll need to work, worship, or attend school in any of the mentioned counties. 

Their customer service is available via mobile and online banking, shared branching, and telephone banking.  

Frequently Asked Questions

What are credit unions?

Credit unions are not-for-profit organizations owned, managed, and utilized by their members. Both the stockholders and customers are its members; that is why any profits it reaps are returned to the member-owners in the form of lower loan rates, higher savings rates, lower fees, and more robust capital than those of banks for-profit, stockholder-owned, and controlled.

Why are there credit unions that use ChexSystems and others that don’t?

Some institutions use ChexSystems because they help them assess the risks of opening an account for a potential customer.

They may also use it to comply with federal regulations requiring them to validate the identity of their customers, which helps to detect and prevent money laundering.

On the other hand, other credit unions don’t use ChexSystems since they are more willing to work with people with a negative banking history. Member-owned, these credit unions have more lenient policies when opening bank accounts for individuals with a ChexSystems record.

Aside from credit unions, are there other institutions that don’t use Chexsystems?

Some banks also don’t rely on Chexsystems, including:

• Chime
• Chase
• Current
• SoFi
• USAA
• United Bank
• Green Dot

You will find a variety of products in these banks that fit your needs.

Bottom Line: Credit Unions That Don’t Use ChexSystems

Credit unions can help an individual re-establish good banking history, and the ones we’ve listed here will allow you to open an account without checking your ChexSystems record.

Of course, it wouldn’t hurt a person to do further research on how to have better banking habits overall. You can also check out the banks mentioned above, if you’re looking for an alternative.