How to clear your Chexsystems record

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How to clear your Chexsystems record

BEST NON-CHEXSYSTEMS BANKS

Looking to get your Chexsystems record cleared? You’re in the right place.

Did you know that most banks use a system called Chexsystems, which is a database that looks at all your past account issues? It’s similar to a credit report, but not quite the same.

By Editorial Team | 17th May 2019
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If you keep getting rejected for accounts or offered limited options, it could be because you’ve got red flags on your Chexsystems report. This can reveal a range of things, from fraudulent activity and missed payments to overdrafts and identity theft. In this article, we’ll look at what sort of things might look bad on a report, along with how to clear it so that you can start banking properly again.

What is Chexsystems?

So what exactly is Chexsystems? It’s a banking database that stores a lot of information about how you’ve interacted with banks in the past. Most major banks use it, so that’s why when you try and apply for something in a new bank, they might already know about you.

While Chexsystems shares some similarities with credit reports, they aren’t quite the same. Your credit score can be accessed by almost anyone, including landlords and other such figures. Chexsystems is a more private database that’s only available to banks. It comprises a detailed set of information, only relating to problems with account holders at banks, rather than wider financial tools.

If you keep getting rejected for loans or other banking services, you might wonder why – especially if you’ve got a good credit rating. It could be because something has been flagged up on the Chexsystems database that you don’t know about.

Chexsystems is owned by Fidelity National Information Services, and it generally shows banks what potential risk you might pose as a borrower. Things that show up on the Chexsystems database which could put off potential new banks include whether you’ve had accounts closed for fraud, how many bounced checks you’ve had and how many times you’ve been into your overdraft. It will also flag up ATM and debit card abuse, excessive account applications, excessive loss of debit cards and checks, suspected identity theft or fraud, along with unpaid negative balances.

Close up of credit cards over grey background
Find out what shows up on the Chexsystems database (Picture: iStock by Getty)

All or any of these records could have a negative impact on your ability to open new accounts at banks or apply for different financial products and services.

If you want to avoid the risks associated with not being able to open up a new bank account or take out a range of financial services, you should start by avoiding the above listed banking behaviors. Obviously, if you are a good banking customer and don’t get involved with any of the things which could come up as red flags on the Chexsystems database, then you should be ok. But for some, this advice might be a bit too late. What do you do if you’re already getting negative hits on the system?

How to clear your Chexsystems record

Thankfully, there are a few potential ways to clear Chexsystems report. Let’s have a look at a few options so that you can start banking properly again:

Clear any issues you have with your bank as quickly as possible. You might be able to fix things before they’re reported to the Chexsystems database. That means you need to keep up with repayments and pay off your overdraft as quickly as possible.

If you get rejected at new banks (or offered limited accounts), you can apply to Chexsystems for a report within 60 days. This will let you know what the bank sees about you and why you were rejected.

This report will also give you advice on how to fix the problems and hopefully get your Chexsystems records cleared. They’ll give you tips on things to do to rectify the issue.

If you can’t clear your record completely, all is not lost. You might still be able to open new accounts, but with limited options. You may have higher fees and some restrictions on your account. Once you’ve been banking safely for a while, these restrictions might get lifted over time.

Alternatively, you can open up a no Chexsystems bank account. Examples include BBVA Compass, First Convenience Bank, Renasant Bank, United Bank and US Bank.

Cash, like this mountain of American dollars, always allows you to feel confident, like a possessor of a miracle cure, capable of solving any arising problem and providing comfort to their owner
Clearing your Chexsystems record helps you bank with confidence (Picture: iStock by Getty)

If these don’t work, then you can try simply behaving better at banks for a while. If you build up a good recent history of banking, then lenders and new banks might look more favorably at your record. Remember, if you do manage to clear your history – then stay away from the sort of things that got you a poor record in the first place!

Summary

If you’ve been having trouble getting accepted for new bank accounts or financial services, it could be because of the way you’ve banked in the past. Many of these interactions show up on industry-wide banking platform Chexsystems. Thankfully, there are ways to get Chexsystems records cleared so that you can start banking properly again.

Written by
Editorial Team
Our Editorial Team is constantly watching for new and exciting services to report on. They aim to bring balanced, honest reviews to the site to give you the best comparisons and ensure you have the knowledge to choose the product right for you. Read more.
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