ChexSystems Report

Written by on February 15, 2011 in Money - No comments | Print this page

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ChexSystemsA ChexSystems report is a record that most banks use to establish if potential clients are too great of a risk for a loan. You will be on this list if your previous bank reports you after they close your account because of a negative balance.

Other reasons are writing bad checks, fraud and too many non sufficient funds. The information will be on records for 5 years unless the bank removes you from the list. Even if you have a good credit score once you make a mistake like bouncing check or overdraft you can be included on the list.

If you were not able to open a checking account chances are you might be listed with ChexSystems. You can contact them and ask for a copy of the report if you are on the list. Some banks will allow you to open a checking account once you’ve settled old balances with previous banks even if you are on the list. You could even negotiate with your bank to be removed from the list after paying all the money you owe them.

When you are reported to ChexSystems you will have a hard time opening a new checking account. Some banks will not even do any business with you at all if you are on the list. There are banks that will allow you to open a second chance checking account but you will be required to pay a higher minimum deposit and a monthly payment.

Make sure to look for banks that provide good services. Compare fees and check if they will be able to upgrade you account to a regular one once you established yourself as a good customer.

If there is no way you could be remove from ChexSystems you could look for banks that do not use the ChexSystems report. You can look for list of banks online just be careful as to what bank you choose. It should be a member of the Federal Deposit Insurance Corporation (FDIC) especially if it’s a small bank, so in case it closes you will not lose all your money.

Opening a new account will help you get back on your feet and improve your credit score. Once you have a good credit score and your name is off the list you can get a regular checking account from a commercial bank.

To avoid being listed always take care of any problem with your bank even if you think the problem is a small one. Always check your balances to avoid over drafts. Some people have been reported for an overdraft of less than 50 dollars. So you always need to be careful.

Make sure after closing your account and withdrawing all your money that you call the bank to confirm the account closed in good standing. Do not provide false information to any bank. If you are a victim of fraud or identity theft, report it immediately. If you think the ChexSystems report contains errors write a letter to them and dispute the information.

There’s more where this came from.  The Credit Doctor has useful and easy to use information that will help you fix your credit.  Find out for yourself what is a good credit score.

Image: jannoon028 / FreeDigitalPhotos.net

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About the Author

Alana Johnson

Alana Johnson tries to enjoy the simple things in life and writes for the Lifestyle category on Quality Life Resources. Living in the small New England town of Norwalk, CT, she looks forward to the warm summer months. To submit your own article for my category, please click HERE. View all Self Improvement articles.