ChexSystems is a verification service and consumer credit reporting agency owned by the eFunds subsidiary of Fidelity National Information Services. It provides information about the use of deposit accounts by consumers.
If you’ve browsed around HustlerMoneyBlog, you may have noticed that some bank bonuses and promotions have information about ChexSystems.
In this article, we will talk about what it actually is and how it can help your decisions when it comes to your banking needs.
What is ChexSystems?
As mentioned earlier, ChexSystems is a consumer-report agency. It exists to provide financial institutions account verification services when individuals apply for accounts. ChexSystems primarily aids banks and financial institutions in identifying applicants with a poor history handling their bank accounts, including those who had overdrawn accounts that were closed.
When you are applying for a new bank account, your information will be run through ChexSystems. If there is a single negative item on your report, then you will most likely be denied a new bank account.
Once a bank verifies a customer, they will perform a ChexSystems test on your account. As you might see from our lists of banking offers, ChexSystems is able to run a soft or hard pull on your credit reports. If they run a hard pull, then your credit score might suffer a couple of points.
This is why it is best to check if the bank promotions require a hard or soft pull. If you liked to know more, you can take a look at our list of Banks that Require a Hard Pull vs Soft Pull. Here are some things you’ll find on your report:
- Identifying information like your name, Social Security number and past addresses
- Unpaid negative balances, including overdrafts or accounts closed involuntarily
- Suspected fraudulent activity
- Account inquiries or applications for other bank accounts
- Unpaid fees
- Public records
Some consumer reports will contain information from nearly seven years or more, but ChesSystems Reports will only give you negative information from the past five years. Keep in mind that each financial institution will have their own set of rules about how much time passes after a negative incident happens before you can open a new bank account.
Receive your ChexSystems Report
You can request your report from ChexSystems for free every 12 months. If you request it more than once, then you will have to pay $10.50 for extra reports. If you don’t have one, then that’s great! ChexSystems typically report negative activity, so if you’ve been paying off everything, then you’re in good standing.
You can contact their customer service by calling 1-800-428-9623. You can also go through their online application process by visiting ChexSystems Online Application.
How to Dispute ChexSystems Reports
If you’ve ever been wrongly denied for a bank account due to a ChexSystems screening then you have the ability to contest some items on your ChexSystems report. In order to dispute an item, follow the next few steps.
- You will need a copy of your ChexSystems report. Remember, you can receive a free report every 12 months.
- Follow the online process via ChexSystems Dispute Service. You will need to complete the application in full, and they will contact you approximately within 30 days.
If it turns out the information on your report is correct, then you should be sure to pay any of the money owed.
- Pay any outstanding balances.
- Communicate to the bank that you’ve paid the balances and request them to report to ChexSystems about the occurrence.
- Be sure to keep documentation of all activity for proof.
This process will require several days, maybe even weeks, but it is worth it in the end to take off a negative item on your ChexSystems report. This will allow you to be eligible for more bank accounts in the long-run. Keep in mind that some banks may or may not allow you to settle your debts. Be sure to double-check with each bank for more information.
Avoid Being Reported to ChexSystems
As mentioned above, ChexSystems documents negative items on your reports. The best way to steer clear and avoid being reported is to keep a clean bank account. By clean, I mean that you should not pay for something that you cannot fund because of your financial status.
Avoiding being reported by ChexSystems is relatively easy. By just understanding your account balance and knowing what you can and can’t pay, you are able to keep a clean record. With that being said, mistakes are possible. As soon as you find a mistake on your report, make sure to contact ChexSystems ASAP.
Banks Sensitive to ChexSystems Reports
| Bank | Sensitivity | Review |
|---|---|---|
| Bank of Canton | Denied with 10 inquiries in past 6 months/20 in the past 12 months | Review |
| Bank of the West | Declined for 20+ accounts in two years Denied for 15+ accounts in two years | Review |
| BBVA Compass | Hard pull via TransUnion. Not sure what limit is, but they are sensitive to too many inquiries. | Review |
| Blue Federal Credit Union | Denied with 10+ inquiries in last couple of years. Denied with 8 this year. CSR mentioned more than 3 accounts in past 6 months would lead to denial | Review |
| Blue Hills Bank | Denied with 15+ inquiries Denied with 2 accounts in last 12 months | Review |
| Byline Bank | Denied if you've had more than 2 inquiries | Review |
| Cambridge Savings Bank | Declined with 15+ inquires in last year Declined with 20+ in last six months | Review |
| Capital Bank | Review | |
| Carver Federal Savings Bank | Denied by having 5+ accounts | Review |
| Christian Community Credit Union | Denied with 26+ inquires | Review |
| Citibank | Denied with 9+ account openings in past 4 months | Review |
| Dedham Savings Bank | Declined with 20+ inquiries in last 6 months | Review |
| Eastern Bank | Declined with 5+ inquiries | Review |
| Elements Financial | Mixed Reports | Review |
| Elevations Credit Union | Denied for 12 inquiries in last 8 months | Review |
| Evansville Teachers FCU | Mixed Reports | Review |
| E*Trade | Declines if you've had more than 10 inquiries | Review |
| First Federal Bank | Not sensitive to ChexSystems | Review |
| First National Bank | Review | |
| First Tech Federal Credit Union | Denied with 15+ bank accounts in the last 24 months | Review |
| First Tennessee | Not sensitive to ChexSystems | Review |
| Justice Federal Credit Union | Declined with 7+ accounts in past 10 months | Review |
| KeyBank | Denied with 10+ inquires Declined with 5 inquiries in last 3 months | Review |
| LA Financial Credit Union | Review | |
| Level One Bank | Denied with 15 inquiries | Review |
| M&T Bank | Review | |
| Memory Bank | Review | |
| Newtown Savings Bank | Denied with 20+ in last year and 10-12 in last 6 months | Review |
| Northpointe Bank | Declines if you've had more than 16 inquiries in the past 2 years | Review |
| Nevada State Bank | Declined with 11 in last 12 months | Review |
| People's United Bank | Closed after having 5-7 accounts opened within 4 months. | Review |
| PerkStreet | Declines if you've had more than 10 inquiries | Review |
| PNC Bank | Denied for 30+ inquiries in three years | Review |
| Popular Community Bank | Closed after initially being opened due to too many inquiries. Had 5-7 accounts in four months prior. | Review |
| Premier America Credit Union | Declined initially with 8 inquiries in past 3 months, approved through revaluation | Review |
| Provident Credit Union | Denied for 12+ accounts in the past two years | Review |
| Ridgewood | Denied with 7 inquiries in past 12 months Denied with 9 inquiries in past 12 months | Review |
| Sound Credit Union | Denied with 10+ inquiries in last 12 months | Review |
| Thrivent Credit Union | Denied with 15+ inquiries | Review |
| The Bank of Elk River | Review | |
| Unify Financial Credit Union | Review | |
| United Nations FCU | Denied with 4-5 accounts | Review |
| Union Bank | Declined for opening 2 accounts in past week | Review |
| Union Community Bank | Denied with +15 inquiries in last 6 months | Review |
| Union Bank & Trust | Not sensitive to ChexSystems | Review |
| Valley National Bank | Denied with 4-5 accounts in the past month | Review |
| Unity Bank | Denied if more than 15 inquiries | Review |
| Wells Fargo | Only sensitive to negative balance reports | Review |
| WesBanco | Declined with 15+ inquiries in past 12 months | Review |
Banks Not Sensitive to ChexSystems Reports
| Bank | Sensitivity | Review |
|---|---|---|
| Alliant | Approved with 15 inquiries in the last 7 months | Review |
| BMO Harris | Approved with 5+ inquiries in the past 3 months | Review |
| Bryn Mawr Trust | Approved with 10+ accounts in two months | Review |
| Chase | Approved with 20+ new accounts opened | Review |
| Citizens Bank | Approved with 15+ inquiries | Review |
| Discover | Approved with 15+ inquiries | Review |
| East Boston Savings | Approved with 15+ inquiries | Review |
| First Tennesse | Approved with 30+ inquiries in last 3 years | Review |
| Home Savings Bank | Approved with 20+ inquires in past 6 months | Review |
| HSBC | Approved with 12 inquiries in last 6 months | Review |
| Integrity Bank | Approved with 10+ inquiries | Review |
| M&T Bank | Approved with 30+ inquiries in last 12 months | Review |
| My Banking Direct | Approved with 15+ inquiries | Review |
| Santander | Approved with 15+ inquiries | Review |
| Stoneham | Approved with 15+ inquiries | Review |
| TD Bank | Approved with 15+ inquiries | Review |
| Tech Credit Union | Approved with 7 inquiries in the past 3 months | Review |
| TIAA Direct | Approved with 15+ inquiries | Review |
| U.S. Bank | Approved with 15+ inquiries | Review |
| Webster | Approved with 15+ inquiries | Review |
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Bottom Line
Understanding how ChexSystems works can be advantageous to your banking strategy. Knowing which banks request a hard pull or soft pull against your credit will help you decide which bank accounts to open. If, however, you do come across a problem with the reports, be sure to contact them immediately.
You are able to dispute any incorrect items on your reports as long as you have the proof to back it up. In the end, just be sure to steer clear of being reported by knowing your account balances. If you liked this article, be sure to check out our Best Banking Bonuses and out list of Bank Guides to learn more!
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Some genuinely fantastic information, Glad I noticed this.
Chexsystems removal and EWS
That’s true Bill. Some banks do look at the number of times of opening a bank account. Obviously opening more than 10 bank accounts within a year can set off an alarm even if it’s just a soft pull. Some care some don’t, however I find many banks are okay with this. YMMV.
In this blog post you discuss negative items such as bounced checks, non-sufficient funds, etc., but you leave out an item that some individuals may run into – that banks tally up the hard inquiries or requests for your ChexSystems report and it is considered negative to have too many inquiries within a short timeframe. The financial institution may hard or soft pull Chex as well as conduct a hard or soft pull on one or more other credit bureaus. (e.g. TU, EX, EQ)
ChexSystems retains inquiries (hard or soft) for three years and all hard inquiries on Chex become visible to anyone else that requests your ChexSystems report. Even if you’ve never bounced a check ever, you can be denied a checking account for too many inquiries on your Chex report.