All About ChexSystems: What Is It and What You Can Do About It?

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If you ever had trouble managing your finances before, it might be hard for you to turn things over. You might have already known about poor credit score and how it can negatively affect your credit report. But here’s another thing: there is also a consumer report that can prevent consumers with a denied credit from opening a checking account. 

This is the ChexSystems consumer report. Once you get blacklisted by them, it might get in the way of your financial activity. Don’t panic; you can still fix your ChexSystems record by improving your banking history. You can also open a new bank account in a bank that doesn’t use ChexSystems.

All About ChexSystems What Is It and What You Can Do About It

There are plenty of ways to consider, and you can learn that from here:

ChexSystems: An Overview

Just as there are credit reporting bureaus like Experian, Equifax, and Transunion, ChexSystems exists as a bank reporting agency. The difference between the two is that ChexSystems only check consumers’ deposit accounts placed in banks and credit unions. 

This reporting agency keeps a record of different account activities and the reasons why these accounts were closed. These institutions will then use this information to see if a consumer is eligible to open a new account with them. Provided here is a list of items that may show up on your ChexSystems record:

  • ATM, account, or debit card abuse
  • Outstanding Balances
  • Identity theft
  • Overdraft and bounced check
  • Involuntary account closure
  • Suspected Fraud
  • Several numbers of accounts applied recently

Every bank and credit union has varying criteria for reporting activities observed in your account. They also apply different regulations that decide whether you can open an account with them or not. While you are still figuring it out with your bank, check what personal loans are available for you here:

Also Read: Learn from Where and How to Buy Bitcoins!

What to Do When ChexSystems Blacklist You?

If you are denied the opportunity to open a bank account, you are most likely blacklisted by ChexSystems. What you can do is acquire a copy of your report to address potential concerns. You may visit the ChexSystems website to request this. The federal law allows consumers like you to have a free copy of your ChexSystems report every 12 months. 

Once you already have a copy of the report, immediately check for any fraudulent information so you can dispute it right away. Investigations may go on for as long as 30 days. But if the records are accurate, you should pay the money you owe as soon as possible. If you have insufficient cash, you may negotiate a settlement with the bank or the collection agency.

After paying your balance, you can request the bank or the collection agency to remove the negative item from your ChexSystems report. You may show them the receipt as proof that you already paid what you are due. Clearing off your ChexSystems record can take time, but this only proves that you are trying to improve your financial situation.

Banking Options for Consumers With Poor ChexSystems Score

Most banks and certain credit unions may be using ChexSystems or some other consumer reporting agency; you still have some banking options you can venture into. Second-chance banking is one of them. 

Several financial institutions never check consumers’ ChexSystems reports or are willing to ignore negative items reflected in your account. Provided below is a list of national examples that you can consider:

  • BBVA Compass
  • Green Dot
  • Chime
  • MemoryBank
  • Wells Fargo
  • Radius Bank
  • Capital One 360

If second-chance banking still doesn’t work for you, using a prepaid debit card can do. With a prepaid debit card, you may only use the money you’ve already put on the card. You may buy or reload your card at retail stores or financial institutions in your area. 

But you need to watch out for additional fees. Prepaid debit cards charge fees every time you reload your card, use an ATM, make some purchases, check your available balance, there is a denied transaction, or monthly fees just for simply using the debit card. 

How to Avoid Getting Blacklisted By ChexSystems?

Rebuilding a poor ChexSystems score is a difficult task. To not get in this situation again, you need to check your accounts regularly and responsibly. Learn how to avoid getting blacklisted by ChexSystems with the tips provided below:

  • Know your account balance. 
  • Review your bank statement every month.
  • You need to check your account balance regularly.
  • Familiarize your bank’s or credit union’s fees and policies.
  • Never “float” your checks.
  • Protect your account from identity theft.

Also Raed: How to Win Real Money with No Deposit in Online Games?


Being denied a checking account because ChexSystems blacklisted you isn’t the end of the world for you. You may review the options mentioned above and see what you can do about it. Understanding the system may be beneficial for you too. Not only it guides you to a life of better money management, but it also gives you awareness of your financial status.

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