Chex Account

The Chexsystem provides banking information and verification services to its members to help them in identifying applicants who have a history of misusing their bank accounts. The “members” who register to use this system are banks, credit unions and other financial institutions. They essentially check into the banking habits and histories of potential applicants for [...]

Chexsystems may be a beneficial tool for banks but it can cause serious problems for banking customers who do not have perfect banking records. It is a databank of customers that have been submitted by banks who have experience problems in the past with these individuals for reasons ranging from repeated bounced checks to accounts [...]

If you are unfamiliar with Chexsystems it is a consumer reporting agency (CRA) that retains negative information about the banking history of members who have had problems in the past. For instance people who have bounced checks or who have had their accounts closed by the bank because they were overdrawn. The system identifies account [...]

Dealing with ChexSystems can make you feel powerless. After all, this is the company that has been keeping you from opening a bank account, causing all sorts of aggravation for you, and continuing to do so for the next five years. But, even though it may feel like it, ChexSystems does not have unlimited power. [...]

If you have gone through the bankruptcy process, you may have been able to erase most of your debts.  However, you may not be able to clear up all of your banking problems.  In fact, a bankruptcy discharge does not get you out of the ChexSystems database. What is ChexSystems? It is a national database [...]

Credit card applicants are aware of credit bureaus and the “FICO” scores that impact their ability to obtain credit cards and the interest rates available to the individual, etc.  Consumers have less understanding of and visibility into the mechanism used by “ChexSystems”, the organization that provides account-holder reliability data to banks, savings and loans, and [...]

If you have experienced problems in the past with your checking account then you should explore what is available to you when it comes to 2nd chance bank accounts. These bank accounts as they state offer you a second chance and will help to restore your privileges regarding check writing. Who are 2nd chance bank [...]

1.  Because ChexSystems is a CRA, everyone who has had a bank account gets reported to them. False.  Only accounts with negative banking histories get reported to ChexSystems. 2.  ChexSystems records are held for 7 years or more. False.  Unlike the credit bureaus, ChexSystems records are removed after 5 years.  If you are certain that [...]

In most cases, you can open a bank account at any bank regardless of your credit.  This is because most banks and credit unions use ChexSystems to verify new accounts.  There are some banks that actually use both ChexSystems and a credit report, but this is not common. Technically speaking, ChexSystems is a CRA (Consumer [...]

How long will I be listed in ChexSystems? 5 years. Do banks from other states check your ChexSystems record? If you moved from one state to another, and wondering whether a bank will check ChexSystems, the answer is yes.  ChexSystems is a nationwide system, so if your name shows up in the database, it will [...]