ChexSystems
Like a credit reporting bureau for your banking history
ChexSystems Definition:
ChexSystems is a federally regulated consumer reporting agency that tracks your banking history, specifically your use of checking and savings accounts. Banks and credit unions across the United States use ChexSystems reports to decide whether to approve new account applications. If you’ve had issues such as unpaid overdrafts, account closures for cause, or suspected fraud, these can be reported to ChexSystems and may affect your ability to open new accounts.
Much like a credit report for your banking activity, ChexSystems compiles information provided by financial institutions and keeps it on file for up to five years. A negative ChexSystems report doesn’t just impact your checking account options, it can also influence whether you’re offered overdraft protection, certain savings products, or promotional bank bonuses.
Quick Links
Frequently Asked Questions:
How long does information stay on ChexSystems?
Most negative records remain for five years unless they are successfully disputed or the reporting bank requests removal sooner.
Can I get a free ChexSystems report?
Yes. Federal law entitles you to one free ChexSystems report every 12 months. You can request it directly from ChexSystems online, by mail, or by phone.
How does ChexSystems affect my ability to open a bank account?
If your ChexSystems report contains negative entries, many banks will deny your application for a new account. Even if approved, you may be limited to basic accounts without certain features
.
Can I dispute information on my ChexSystems report?
Yes. You can dispute inaccurate, incomplete, or outdated information directly with ChexSystems. They are required to investigate and respond, typically within 30 days.
Are there banks that don't use ChexSystems?
Yes, not all banks and accounts will use your ChexSystems history to determine eligibility. Even major banks offer specialty or "second chance" accounts for those with Checksystems issues.
