What is ChexSystems? Banking Terms You Should Know

If you’re looking to open a new account or close an existing one, your bank might mention ChexSystems. While ChexSystems is a common terminology tossed around in the banking world, it’s not something consumers hear about on a daily basis. So what is ChexSystems? Or a ChexSystems report for that matter?

We’ll go over how ChexSystems affects your personal finances and can determine where you bank. We’ll also give you some solutions for banking with a poor ChexSystems report. Take a look to get started!

What Does Chexsystems Look For?

ChexSystems is a nationwide, specialty consumer reporting agency. It operates under the federal Fair Credit Reporting Act (FCRA). ChexSystems reports consumer banking information on checking accounts, credit unions, and savings accounts. 

Your ChexSystems report is similar to your credit report. The major difference is that ChexSystems tracks your banking account history while credit reports track your credit accounts. Similarly to when a lender looks into your credit history before approving you for a loan, banks will look into your ChexSystems report before allowing you to open a checking account or savings account. 

Your ChexSystems report contains your personal information, banking information, and your bank account history. It will also mention any of the following instances. 

  • Account overdrafts
  • Unpaid negative balances
  • Bounced checks
  • Involuntarily closed accounts
  • Suspected fraudulent activity
  • Number of times your debit cards have been lost
  • Number of times you’ve applied for a bank account

ChexSystems tallies up this information and translates it into a score. ChexSystems Consumer Scores range from 100 to 899, with a higher score meaning less risk. Banks will look into your ChexSystems report to determine how risky it is to let you open an account. 

How to Get a Copy of Your Chexsystems Report

The Fair and Accurate Credit Transaction Act (FACTA) along with amendments to the Federal Fair Credit Reporting Act (FCRA) gives you the right to a free copy of your ChexSystems report once every 12 months. 

You can request your free report through ChexSystems by submitting a Consumer Request for Disclosure form. ChexSystems will then mail you your official report within 5 business days after receiving your request. There are several ways you can request your ChexSystems report. 

Request Online: You can request your report online through ChexSystems’ online Consumer Request for Disclosure form. Get started by following the link here

Calling-in: Call 800- 428-9623 to request your report. 

Request via Mail: Find the Consumer Request for Disclosure form online by following this link. Once the form has been filled out and printed, you can mail it to the following address. 

Chex Systems, Inc.

Attn: Consumer Relations

7805 Hudson Road, Suite 100

Woodbury, MN 55125

Request via Fax: Once your Consumer Request for Disclosure form has been filled out and printed, you can fax it to 602-659-2197.

Can You Remove Negative Marks from Your ChexSystems Report? 

Negative marks on your ChexSystems report can last up to five years. This timeframe is too long if you’re trying to open a bank account now. If you notice account overdrafts or any other unpaid fees on your account, get in contact with your bank to try to resolve the issue immediately. Resolving issues won’t erase the incident from your report, but it will help improve your overall score and make you appear less risky to other banks. 

You can try to dispute information on your ChexSystems report if you believe there has been a mistake. ChexSystems will usually correct any misinformation on your report within 30 days. You can make a dispute online by following this link. Or you could print out and complete a Request for Investigation form and either fax it to 602-659-2197 or mail it to the following address. 

Chex Systems, Inc.

Attn: Consumer Relations

7805 Hudson Road, Suite 100

Woodbury, MN 55125

Can I Still Open a Bank Account if I Have Negative Marks?

Many banks will deny you an account if you have a negative ChexSystems report. That doesn’t mean it will be impossible to open a bank account. Some banks might give you some leeway. You could also open a second chance bank account. 

Second chance bank accounts are like checking accounts except they usually come with higher fees and fewer features. Many people with a negative ChexSystems report are able to open a second chance bank account. Many major, national banks offer second chance accounts. 

Opening a Bank Account with a Poor ChexSystems Report

Are you serious about getting your finances in order? Is your negative ChexSystems Report the only thing holding you back from a fresh start? A MoneyLion account can help.

Our all-encompassing bank helps you get back on track with setting up direct deposits, sending you alerts when your account gets low, giving you rewards, and charging minimal fees. You’ll get an instant virtual card and a MoneyLion Debit Mastercard. You can also take advantage of free cash advances of up to $250 from Instacash and Credit Builder Loans to help you restore your credit score. 

Ready to get started? Download the MoneyLion app and create an account! 

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