When you apply to open a bank account, your bank may check for a ChexSystem file on their database. A ChexSystems file indicates if you have a history of banking problems. Being reported to ChexSystems may be the reason a bank turns down your application for opening an account. Most consumers are not aware of the ChexSystems until they have to open a bank account.
If you’re having a difficult time opening a bank account because of having a record on a ChexSystem, here is what you can do to remove yourself from the record.
Make a Request for Your Report
If you have ended up on the ChexSystems record, you can start by making a request for your report to understand why your bank turned your application down.
The report will give you insight into the accounts you may have closed, any debts that remain outstanding and checks that may have bounced. You can request a free copy of this report once a year by calling ChexSystems at 800-428-9623 or by filling out this form on their official website.
Disputing Errors and False Information
If you find that your report indicates a discrepancy that you believe is inaccurately reported, you can dispute that error by collecting supporting documents. These supporting documents may be in the form of payment records and bank statements. You can submit your dispute online via the ChexSystems website, mail or by phone.
After submitting the proof of supporting documents, you can decide on either of two courses of action. The first course of action is that you let ChexSystems contact the bank or crediting agency that misreported the information on your behalf; the second course of action is that you can mail your dispute to the financial institution on your own.
Paying off Your Debts
If your report does not have any misinformation and you owe money, try to clear our debts. If you are unable to do so because of budget constraints, try to negotiate with your creditors if they are willing to settle for a lesser amount than you owe. If done right, the negotiation can turn out in your favor in more than one way.
Ask Your Creditors To Update The Information
Once your debt has been repaid, you may proceed to asking your creditor of the debt collecting agency to update your records on ChexSystems. Make sure to get the payoff in writing so that you can keep a track of the records for the payments you have made. If everything is done right, the next report will indicate that the debt has been cleared.
Wait for The Record To Drop Off ChexSystems
If nothing else work, wait it out. Any information reported on your ChexSystems record drops off after 5 years. As a backup plan, you may get a second-chance banking account opened. Designed especially for those who have had bad credit and banking histories, the second-chance account enables you to rebuild your financial history so that you can be eligible for a standard bank account within a year.
Get A Credit Services Company To Help
KeyPoint is a credit service company in Fremont that caters to clients looking to improve their financial health. With their experienced team of legal and financial experts, KeyPoint specializes in credit repair, ChexSystems removal and other credit services.
Get in touch with them at 1-800-745-7400 to learn more about their services.