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Banking Problems? Here’s Everything You Need To Know About ChexSystems
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Banking Problems? Here’s Everything You Need To Know About ChexSystems

Have you been denied a banking account? Chances are ChexSystems has filed a report under your name. Most banks nowadays use ChexSystems to check if you’ve had a history of mishandling accounts. Applying for a new account may be difficult once blacklisted by ChexSystems. If such is the case, is there a way to remove or avoid them completely? There is!

It may not be easy to open a new bank account with ChexSystems coming after your back. But there are available alternatives for you to do while waiting for your record to clear up. Browse our comprehensive guide about ChexSystems and know what options may work to your advantage.

What Is ChexSystems?

ChexSystems is a national consumer-reporting company that tracks individuals who have histories of mishandling savings or checking accounts. They are the banking equivalent of credit reporting bureaus. Banks and credit unions have partnerships with ChexSystems to determine the level of potential risk that a customer can inflict on their respective institutions.

ChexSystems also provides banks with all the required information to identify whether a consumer is eligible for opening an account. For all of its importance, not many people are aware of ChexSystems’ existence. Learn how to avoid them for good here:

How Does ChexSystems Report Works?

A ChexSystems report is completely different from a credit report. While the latter holds your history of handling debts, the former records problems a bank has with account holders. Below is a list of negative items that banks may report to [ChexSystems]:

  • Unpaid balances
  • Abuse of debit/ATM cards
  • Too much account application
  • Overdrafts/Bounced checks
  • Excessive reports of lost check/debit cards
  • Fraud/identity theft
  • Closed accounts for a cause

The review process includes ChexSystems providing banks consumer information such as Risk Score and Consumer Disclosure. A Risk Score can range from 100 to 899. The higher score an account has, the lower the risk is. As for Consumer Disclosure, it contains all the banking history under your account.

How To Clear Up Your ChexSystems Record?

You can stay in ChexSystems record for as long as five years. And this can hinder you from applying for a new bank account. Clearing up your account as soon as possible should be your priority. Provided below are the ways that you can do to remove your record:

  • Request A Copy Of Your ChexSystems Record

The key to determining why your account application was rejected is by getting a copy of your ChexSystems record. You are accredited to a free copy of your record once every 12 months. The record consists of a complete breakdown of the negative items that your previous bank might have reported to the agency. [ChexSystems] can be reached through phone or email.

  • Dispute Inaccuracies Or Errors

If you find inaccuracies or errors after receiving a copy of your ChexSystems report, you may dispute the claims made against you. Start by gathering supporting documents such as bank statements and bank records. You may then visit the Dispute Information section of [ChexSystems]’ website and decide how you’ll proceed.

If you choose to submit online, you may fill up the provided form with all the necessary information to support your claims. If mailing [ChexSystems] works best for you, you may print out the “Request For Investigation” form, fill it out, and include copies of your supporting documents. But, if you have no documents to back you up, calling them is the best option.

  • Pay Off Unsettled Debts

If it says in your ChexSystems record that you have outstanding debt and confirms that it exists, you have to pay it. But if you are financially unstable, you may negotiate with your creditor to only pay less than the actual amount owed.

  • Ask Creditors For Report Removal

Once you’ve paid all the money you owed, request your creditor or the collection agency itself for a record removal. Make sure to keep written payoff information and receipts that show that you’ve already paid your debt.

  • Wait For Your Record To Be Removed From The Database

If the steps mentioned above still fail to clear off your ChexSystems record, all there’s left to do is wait for your record to be removed from the database. You may have to wait for as long as five years for this to happen.

Applying For A Bank Account With A ChexSystems Record

Getting blacklisted by ChexSystems doesn’t mean that you have no access to any checking or savings account for five years. There are banks and credit unions that offer second-chance checking accounts to individuals who have bad banking history.

Keep in mind that deals such as this may come with higher monthly fees. But it will give you a chance to move to low-cost regular checking accounts after managing checking accounts successfully for a year or two.


Getting your account application rejected because of a ChexSystems report isn’t the end of the world. You only have to understand the agency’s process and what options are available for you. Manage your money well and read our guide to successfully avoid [ChexSystems] at all times.

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