ChexSystems is a system that many banks use to track your checking and savings account activity over time. Banks use this database of information to decide whether or not you’ll be approved for financial products. In this text, we are going to tell you everything you need to know about ChexSystems as well as why and how to get removed from it.

As said above, ChexSystems is a consumer reporting agency (CRA) that scans your bank activity and provides all information to all banks that use it. Unlike other CRAs that monitor your entire banking activity and can provide creditors with your name, ChexSystems only track and informs about a bank activity that can make you a risky customer for a bank. These reports include accounts closed for cause, unpaid negative balance, bounced checks, abuse or excessive loss of debit cards and so on. Basically, banks use the CRAs system to protect their business from fraud and loss of money. Banks acquire all information, both personal and data about good and bad banking activity, that allow them to establish whether or not one would be a risk for their bank. There are several things that cause ChexSystems negative report such as violation of banking regulations, falsified information of banking account, fraudulent activity, failure to pay fees, etc.

Nowadays, not all banks employChexSystems. You can take a look at where you will find a list of banks that don’t use ChexSystems and choose the best one for you to open your banking account.

The main reason people want to remove themselves from ChexSystems database is to increase their chances of opening a banking account at some other bank. If you have ever been denied for opening a new account, it’s probably because you have a negative ChexSystems report. In order to get easily approved by banks, you have to remove yourself from this database and here’s everything you have to do.

The first thing you have to know is that your information is only available to banks and the whole process of deleting your negative report lasts five years. Yes, this is a long period of time, so be careful how you use your account. A lot of people accidentally breach the bank’s regulations without knowing it. Some don’t use their accounts very often, or they simply are not informed about their obligations towards the bank.

Firstly, you have to contact ChexSystems and request your report. By law, they are obliged to send it to you. Upon receiving your report, inspect it carefully for any mistakes. If you detect any mistake, you have to have it corrected as soon as possible, and you can do that by submitting a claim dispute. Once you have submitted your claim, ChexSystems will start an investigation to see if your claim is founded. You can request that they contact the bank which recorded your negative banking history. In addition, you will be required to provide documents that prove your claim. However, if their report is correct, you’ll have to pay off the debt in order to be removed from the database.

Since this process lasts for five years, a number of banks have established special banking programs for people who have a negative ChexSystems report. These programs are called Second Chance Banking. These banking accounts have several limitations, but you will be able to withdraw and transfer money from one account to another, you will get a debit card you can use for making purchases and withdrawing money from the ATMs. These accounts have low maintenance fee, however, you will not be allowed to write checks.

These are some basic things you have to know about banks and ChexSystems. Be careful when searching for a bank you want to work with. If you have been reported to ChexSystems, you have to act quickly. It can be really difficult surviving without typical banking service, so you have to investigate your negative report and start the process of removing it as soon as possible.