What is ChexSystems?
ChexSystems is a company that reports banking information. The difference between ChexSystems and the credit bureaus is simple: ChexSystems keeps a record of your banking and credit union history, and the credit bureaus keep a record of your credit history.
The information in the ChexSystems database is shared with other banks and credit unions. If you have negative information on your report and apply for a checking account at a ChexSystems member bank or credit union, you might be turned down because of your banking history.
It is extremely important to know what kind of negative activity ChexSystems can report. Listed below is damaging information that could prevent you from acquiring a checking account.
- Multiple overdrafts on your bank account.
- Multiple Insufficient Funds Fees – Unpaid debts to your bank.
- Providing false information when opening your bank account.Writing bad checks.
- Bank closes your account because you Mishandled Accounts.
Once you have been placed in the ChexSystems database, you will remain on this report for five years. This fact can make getting a bank account impossible. Therefore, verifying and resolving the information on your ChexSystems report is crucial. To do so, you need to send a statement in writing to ChexSystems indicating the errors you are disputing. Make sure you include your Social Security Number, Full Name, and Address, and sign your request.