How does chexsystems affect me

If your report shows anything that causes the financial institution to view you as a risky customer, it may deny you a bank account. Fortunately, there are some banks and credit unions that offer second-chance bank accounts. These accounts are designed primarily for people who can't get approved for a regular bank account due to issues with their ChexSystems report.

However, second-chance bank accounts often charge fees and may provide limited services—for example, you may not be able to sign up for overdraft protection or get access to checks or direct deposit. You can also apply for a prepaid debit card, which only allows you to use money you've loaded onto your account. You can also get a free copy if you've been denied a checking or savings account in the past 60 days.

Also, note that if you've been denied a bank account, the bank or credit union is also required to disclose the reason or reasons for the denial. After the agency receives your request, you should get a copy of your report in the mail within five business days, so requesting one online or via phone will give you the fastest response time.

Legitimate information will typically stay on your report for five years, which can make it challenging to get approved for a bank account. Depending on the situation, though, there may be some opportunities to clean up your ChexSystems report. If your report shows accounts where you still owe money—such as an account with a negative balance due to overdrafts—pay off the balance of what you owe as quickly as possible. In some cases, you may even be able to settle for less than what you owe.

Once the debt is satisfied, you can file a request with the bank, credit union or collection agency to update or remove the negative item from your ChexSystems report. Alternatively, you can request a receipt for your payment and send it directly to the reporting agency to have your record updated.

If you find anything that's inaccurate on your report, you can dispute it with ChexSystems. Make sure to provide any supporting documentation you might have.

The agency can take up to 30 days to investigate it and, if it can confirm your dispute, remove the inaccurate information. Your ChexSystems report has no direct impact on your credit score. However, if you've been denied a checking or savings account and have a ding on your ChexSystems report, it may be a sign that you've had difficulties in the past that may also have an impact on your credit history.

Also, if you have a negative balance on a checking account that's been sent to a debt collection agency, that agency may choose to report the collection account to the national credit bureaus, which can harm your credit score. If you're concerned about your credit history, it's a good idea to check your credit regularly. While monitoring your credit won't help you get approved for a bank account, it will help you know where you stand and what you can do to improve your credit history and overall financial health.

Focus on Making Good Financial Choices Getting denied a bank account can be frustrating and discouraging. But don't let it sap your motivation to improve your financial life.

Review your ChexSystems report to see if you can do anything to improve your chances of getting approved. If you still can't get approved, apply for a second-chance bank account or prepaid debit card, and plan to use them wisely. That way you can avoid any other negative items that could hurt your chances of getting a bank account in the future.

But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. When you apply to open a new checking account , banks and credit unions may review your ChexSystems report before approving or denying your request.

Just like the major national consumer credit bureaus , ChexSystems collects information about a specific set of your activities. But instead of information about your credit history, ChexSystems collects information about your checking account history. Although some other consumer reports contain negative information from the previous seven years or more, ChexSystems reports generally keep negative information on record for only five years.

But each financial institution has its own rules about how much time must pass after a negative incident before you can open a new bank account. The Fair Credit Reporting Act requires ChexSystems to provide you with one free copy of your checking account report each year. See your options for submitting a request here.

You also have the right to pull a free copy of a ChexSystems report used in a decision to deny your application for a new account. Staying vigilant is key to financial success in many areas, from loans to debt management and especially navigating through ChexSystems. By following a few responsible banking practices, you can take better control of your finances! Credit can be a wonderful thing. How else could you afford to buy a car, buy a home, pay for college, or some other big-ticket item?

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