What to Know (and Do) If You’re Listed in ChexSystems

ChexSystems is a consumer credit rating report agency that tracks activity related to closed check, savings, and other situate accounts at banks and citation unions. If you ’ ve ever had issues with a sediment account, such as a bounce or returned check, it ’ s possible that you might have a ChexSystems profile. While your ChexSystems history doesn ’ t directly affect your FICO citation scores, it can have an affect on your ability to open raw bank accounts .

Key Takeaways

  • ChexSystems is a consumer credit reporting agency that collects information on closed deposit accounts at banks and credit unions.
  • The type of activity that ChexSystems tracks is related to issues with deposit accounts, such as bounced checks.
  • Having a ChexSystems record could make it difficult to get approved for new bank accounts.
  • Prepaid debit cards and second chance checking accounts are alternatives to consider when you’re unable to qualify for a standard bank account.

What Is ChexSystems ?

Chex Systems Inc. ( d/b/a ChexSystems ) is a consumer accredit report agency covered by the federal Fair Credit Reporting Act ( FCRA ). The company collects and reports data on close discipline and save accounts. ChexSystems then furnishes this information to banks, fiscal institutions, and early types of companies that are allowed to access it under the FCRA.

In doing so, ChexSystems helps banks and other companies that have the right to access your records to assess risk. In that sense, the company operates similarly to accredit chest of drawers that gather information about your debts. Some specific rules apply regarding when a company can request your ChexSystems report. Under the FCRA, covered situations include :

  • Business transactions initiated by you, such as applying to open a new checking account
  • Requests that have your express written permission
  • Applications for licenses or other benefits granted by the government when the law requires consideration of financial responsibility
  • Child support determinations
  • Subpoenas of your financial records issued by a court order or federal grand jury

again, ChexSystems only collects information relating to closed bank accounts. It doesn ’ t track information about active voice bank accounts or credit accounts, such as citation cards, loans, and lines of credit .

ChexSystems only furnishes information ; it does not actively approve or decline bank accounts.

How ChexSystems Works

ChexSystems collects information related to closed check or other bank accounts. This can include :

  • Applications for new checking accounts
  • Checking account openings or closings
  • Check-writing history, including bounced or returned checks

Your ChexSystems report may besides include things such as overdrafts, unpaid negative balances, and suspected identity larceny or bank fraud. When you apply for a new bank account, the bank or fiscal mental hospital in question can request a replicate of your ChexSystems report. It can then use this information to determine whether to approve you for a new report .

specifically, ChexSystems can share the following with banks :

  • ChexSystems Consumer Score—This score is based on the information in your ChexSystems Consumer Disclosure report. A higher score is better, as it means that you represent a lower risk to banks.
  • ChexSystems Consumer Disclosure—This report is a collection of information about your closed bank accounts, including the types of things listed earlier. Again, this is similar to a credit report, but it focuses solely on banking activity.

information that ’ south included in your ChexSystems report can broadly remain there for up to five years. ChexSystems can remove it at the request of the bank or fiscal mental hospital that furnished the data or if accredit report laws require differently .

You can request a copy of your ChexSystems Consumer Score and Consumer Disclosure for absolve through the company ’ sulfur web site.

What to Do If You ’ rhenium Listed in ChexSystems

You may not be aware that you have a ChexSystems report until you apply for a bank history and are denied. If you ’ ve been told that you can ’ deoxythymidine monophosphate open a bank account because of negative ChexSystems report, the first step is to request a transcript of your Consumer Disclosure. Again, this is available to you at no appoint.

once you have a transcript of your ChexSystems report, you can review it thoroughly to verify that any and all information included is correct. If you spot an error or a error, you have the good to dispute it. You can do so online through the ChexSystems web site, and once a challenge request is filed, the company is required to investigate and determine whether the information in your file is accurate. Investigations are normally completed within 30 days ( 21 days for Maine residents ), but they can be extended by 15 days if you provide extra data while the investigation is under way .

once the investigation is complete, ChexSystems will notify you in writing of the results. This doesn ’ deoxythymidine monophosphate undertake that any negative information will be removed or corrected, but it ’ sulfur worth exploring if you believe that you ’ ve been reported to ChexSystems in error .

Bank Account Options When You ’ ra Listed in ChexSystems

If you have a ChexSystems phonograph record, it ’ s possible that you may be denied for a traditional check or savings account. In that scenario, there are two alternatives that you can explore for managing your money .

The first is a second gear prospect bank report. second base casual accounts, besides known as lower risk accounts, are designed for people who have had trouble with bank in the past. These accounts typically differ from regular deposit accounts in things such as :

  • Minimum deposit requirements
  • Monthly maintenance fees
  • Transaction limits
  • Debit card access
  • Check-writing access

irregular opportunity accounts can be found at traditional banks and credit unions, and you may besides find them online. These accounts can help you reestablish a positivist bank history, and, depending on the bank, you may be able to convert to a regular bank bill after a set time period .

Another possibility for managing your money when you ’ ve been denied a banking account because of your ChexSystems history is using a postpaid debit card rather. These cards allow you to load money and then withdraw cash or make purchases the way that you would with any other debit card. The difference is that they aren ’ t attached to a bank score .

When comparing prepaid debit card options, look for ones that offer the best combination of low fees and added benefits, such as the option to enroll in direct situate or earn cash back on purchases. When choosing a postpaid debit card for spend, consider :

  • How much you can load at any one time
  • Loading methods (cash, direct deposit, mobile deposit)
  • Where and how you can use the card (for purchases, at ATMs, online bill payments)
  • Online and mobile access
  • Fees, including initial card purchase fees, monthly maintenance fees, and reload fees

A postpaid debit poster won ’ thymine help you build any type of positive bank history, and you may run into headaches if your menu is lost or stolen and you have to pay to replace it. placid, if you ’ re unable to qualify for a unconstipated bank account or a second probability bank report, they can be a more favorable option for managing money than using cash .

faq

Can You Get Yourself Removed from ChexSystems?

If you have a ChexSystems record ascribable to problems with a depository financial institution account, the record can remain for five years. To be removed before then, you must successfully dispute either the ChexSystems criminal record or the bank that reported you. You can obtain a free copy of your ChexSystems report, which you should examine for errors. If you find inaccurate information, file your dispute with whichever entity placed the false data .

How Often Can You Get a Free Copy of Your ChexSystems Report?

once per year. You can obtain a exempt replicate of your report and ChexSystems score annually. You must request the report. It is not sent mechanically. Requesting your report does not hurt your accredit score.

How Do You Know If You Have a ChexSystems File?

You may not find out until you apply for a bank account and are denied. If this happens to you, request a absolve copy of your ChexSystems composition, which you can do on an annual basis .

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