Your Guide to Your Banking History
- Berley B, MS
- Mar 21, 2022
- 3 min read
“We will send you a letter in 7 to 10 business days”, says the bank
Have you or a friend have been denied a checking account at your favourite bank? Do you know someone who only has a CashApp card because they cannot open a checking account with a traditional bank? You might wonder why since banking history is not reported to the credit reporting agencies. Well, I’m here to tell you, like everything else in America, there’s a report for that!!! CHEXSYSTEMS.
What is ChexSystems and how does it work?
ChexSystems is a reporting agency that reports your banking history- Checking and Savings accounts. The thing is- it mostly reports NEGATIVE activities. Banks and Credit Unions use it to determine your approval for a new checking/savings account.
Just like your credit reports, there are different sections to your ChexSystems report:
Personal Information- Name, Address, Email, phone number, and Date of Birth (DOB)
Reported Information- Account/Debit Cards abuse, unpaid negative balance, overdrafts, suspected fraud and identity theft, involuntary closure of checking/savings accounts, and more for a period of 5 years.
Inquiries- Anyone who accessed your account up to 3 years (when applying for a loan, they usually check it too.)
Retail Information- Returned checks within the past 4 years
History of check ordered- Checks ordered within the past 5 years
Social Security Number Validation- Year and State the social security number was issued.
How to obtain a copy of your ChexSystems Report?
You are entitled to obtain a FREE copy of your ChexSystems report once every 12 months, and you can also obtain a free copy of your report if you’ve been denied for a checking/savings account within 60 days.
There are 4 different ways you can request a copy of your report:
Online through the consumer reporting agency's website (I recommend this way because it gets emailed to you and it is the faster route)
Over the phone by calling 800-428-9623 (This route is also fast)
Downloading and mailing a request form to:
ChexSystems Inc.,
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125
Downloading and faxing a request form to 602-659-2197
Does your ChexSystems Report Affect Your Credit Score?
Your ChexSystems report does not usually affect your credit scores, however, it does affect your ability to obtain loans, especially personal and mortgage loan. Sometimes, banks send negative accounts (checking accounts) to collection agencies, which will be reported to the credit reporting agencies and will then affect your personal credit reports/scores.
I know you’re asking, “what can I do if there are inaccurate information on my ChexSystems, can I at least dispute it?”
You know I got you! Just like your credit reports, you have the right to dispute any questionable, inaccurate items on your banking history report. THANKS TO THE FAIR REPORTING ACT.
If you found some inaccuracy/negative items on your ChexSystems report, here what you can do:
Send them a certified letter asking them to investigate and be specific on what you want the outcome to be. (They have 30 days from when they receive your letter to respond.)
If you have an outstanding balance with a bank, contact the bank to come with a solution and ask them to update or delete the account
If you find have been denied a bank account, do not get discouraged! There are banks that offer “second-chance checking accounts”. Just google “banks that offer second-chance checking accounts”.
If you need a more personalized Plan of Action, the only service I currently offer where I go over your ChexSystems report AND your credit reports is the Private One-on-One Finance Session.
In this session, we will be covering and highlighting:
Explicit feedback on your three Credit Reports and Banking History (Chex Systems) for areas of improvement
Targeted suggestions for each area to strategically improve your chances of improving your credit reports/scores, getting approved for car/home/dream credit cards, etc…
Your own PERSONAL Plan of Action (POA)
The first FOUR (4) rounds of letters to the credit bureaus
The First (1) round of letter to the Collection Agencies
Up-to-30 minutes follow up session within three (3) to six (6) months of your initial session for a complimentary audit and feedback of your Credit Reports.
and more....
Schedule your Private Zoom Session with me now
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