How to Clean Up a ChexSystems Report - Experian (2024)

If you're having trouble opening a bank account, it may be because there are some negative items on your ChexSystems report. By cleaning up your report, you can improve your chances of getting approved for a new account. Here's what you need to know.

What Is ChexSystems?

ChexSystems is a banking reporting agency, similar to credit reporting agencies like Experian. The difference is that ChexSystems only keeps track of your deposit accounts with banks and credit unions.

ChexSystems maintains a report of certain account activities and reasons accounts were closed. Most banks and credit unions use this information to determine whether to allow you to open an account with them. Examples of items that can show up on your ChexSystems report include:

  • Involuntary account closure
  • Bounced checks and overdrafts
  • Unpaid negative balances
  • Account, card or ATM abuse
  • Suspected fraud or identity theft
  • Number of accounts applied for recently

Each bank and credit union has different criteria for which activities it will report and which activities may prevent you from opening a new account with them.

Cleaning Up a ChexSystems Report

1. Request a copy of your ChexSystems report. If you've been denied a bank account because of your ChexSystems report, it's a good idea to get a copy and address potential concerns.

Federal law allows you to obtain one free copy of your ChexSystems report every 12 months. You can also request a free copy when a bank refuses to open an account due to information on your report. To request a copy of your report, visit the ChexSystems website. Once the agency receives your request, you can expect to get a copy of your report within five business days.

2. Review your report. When you get it, look through it to determine what may have caused your denial.

3. Dispute any inaccurate information. If you find erroneous or fraudulent information, you have the right to dispute it. Include any supporting documentation you have in your dispute with the agency. Investigations typically take up to 30 days.

4. Pay any overdue amounts. If the report is accurate and you owe money, pay it as quickly as possible. If you don't have enough cash to do so, consider asking the bank or collection agency if they would be willing to settle for less than what you owe.

Once you've paid off your balance, you can request that the bank or collection agency remove the record from your ChexSystems report. You can also get a receipt showing that you paid the amount in full and send it to ChexSystems to have them update their records.

This process can take time, but it shows that you're working to improve your financial situation and can help your chances of getting a new bank account.

How Long Does a Report Stay on File?

If there's an item on your ChexSystems report that you can't have removed manually, it usually takes five years for it to fall off your report on its own. Unfortunately, this may limit your options to second-chance bank accounts and prepaid debit cards.

So if you can get something removed by disputing it or paying off a debt, it's best to do so to avoid having to wait.

Opening a Checking Account Without ChexSystems

While most banks and credit unions use ChexSystems or another consumer reporting agency, there are several that offer what's called second-chance banking. These financial institutions either don't check your ChexSystems report at all, or they're willing to look past some negative items. National examples include:

  • Capital One 360 Checking Account
  • Chime Second Chance Banking
  • GTE Financial Go Further Checking
  • Varo Second Chance Banking
  • Wells Fargo Clear Access Banking

You may also have luck finding second-chance banking opportunities with regional and local banks and credit unions. Call the institution directly to determine what your options are.

Issues with your ChexSystems report can cause problems if you need a new bank account. But fortunately, you're not without options. By getting a copy of your ChexSystems report and addressing the problems that are preventing you from getting approved, you can improve your odds for the next time you apply.

Also, consider getting a free copy of your credit report and check your credit score. While these may not help with getting a bank account, knowing where you stand and working to improve your credit history can help get you on the path to a better overall financial standing.

How to Clean Up a ChexSystems Report - Experian (2024)

FAQs

How to Clean Up a ChexSystems Report - Experian? ›

There is no quick remedy for eliminating past credit or debit history that may be affecting your score. The best approach for managing your score is to manage your credit and debit activities responsibly over time. You should review the key factors provided with your score.

How can I clear my ChexSystems report? ›

5 steps to clearing your ChexSystems report
  1. Request a copy of your ChexSystem report. ...
  2. Dispute mistakes or fraudulent activity on your report. ...
  3. Pay off your balances. ...
  4. Ask creditors to remove information from your ChexSystems report. ...
  5. Wait for items to fall off your report.
Nov 4, 2023

How do I lower my ChexSystems score? ›

There is no quick remedy for eliminating past credit or debit history that may be affecting your score. The best approach for managing your score is to manage your credit and debit activities responsibly over time. You should review the key factors provided with your score.

How to remove ChexSystems freeze? ›

To place, lift or remove a security freeze for a Protected Consumer, please submit your request in writing and provide sufficient proof of authority and sufficient proof of identity. Security freeze requests submitted to Chex Systems, Inc. will be applied only to your ChexSystems consumer report.

How long does a report stay on ChexSystems? ›

How long does negative information stay on ChexSystems and/or EWS consumer reports? Generally, negative information remains on ChexSystems and/or Early Warning Services (EWS) consumer reports for five years. Under the Fair Credit Reporting Act, certain negative information may be reported for up to seven years.

How do I get out of ChexSystems and Early Warning Services? ›

To submit your request using another method, click the tab labeled 'Submit Request by Other Methods'. If you prefer, you may submit a five-year opt-out request by calling ChexSystems' opt-out request line at 877. OPTOUT 5 (877.678. 6885).

What is a bad score on ChexSystems? ›

What Is A Good ChexSystems Score?
Risk LevelCutoff Score*
Averse580
Moderate545
Aggressive525
Nov 16, 2022

Can banks override ChexSystems? ›

While most banks and credit unions use ChexSystems or another consumer reporting agency, there are several that offer what's called second-chance banking. These financial institutions either don't check your ChexSystems report at all, or they're willing to look past some negative items.

What do banks look for on ChexSystems report? ›

ChexSystems is a reporting agency that banks use to track people who have had issues with their bank account. ChexSystems retains consumer records for up to five years. Second-chance checking accounts are an option for people who otherwise can't get a bank account.

What bank does not use ChexSystems? ›

Summary: Best Banks That Don't Use ChexSystems
Bank / Credit UnionForbes Advisor RatingMinimum Deposit Requirement
SoFi Checking and Savings Account4.5$0
Capital One 360 Checking Account4.5$0
Chime® Checking Account4.4$0
LendingClub Bank Rewards Checking4.2$25
1 more row

How to get a bank account with bad ChexSystems? ›

Many credit unions will open an account for you if you can reasonably explain why you haven't paid a ChexSystems debt, and some credit unions will not pull a report on you even if you do have poor history. Call and ask to speak to the branch manager or other bank official.

How do I remove a freeze from Experian? ›

Online: You can remove (and reactivate) a security freeze from your Experian credit report quickly and easily. If you have an Experian account, unfreeze your credit by logging in, clicking on "Help Center" and toggling the freeze status to "Unfrozen" or scheduling a future thaw.

Is it a good idea to freeze ChexSystems? ›

Why Freeze Your ChexSystems Report? Adding a security freeze to your ChexSystems report limits access to your report and can help protect you from identity fraud. If your report is frozen, it could be more difficult for someone else to open a bank account using your personal information.

How do I clear my Chexsystem report? ›

You have the right to dispute any information contained in your consumer file at ChexSystems. Pay off debts. After you've paid off any debts that are causing a negative report, you can request that the credit union, bank, or collection agency remove the record from your ChexSystems report.

How to remove negative bank balance? ›

In most cases, people quickly eliminate their negative bank balance by simply depositing the amount needed to get their account back in good standing. However, there are certain consequences that your bank may impose, especially if you consistently have a negative bank balance, such as: Overdraft fees.

Can you dispute something on ChexSystems? ›

You may submit a dispute only for information contained in your own personal ChexSystems consumer disclosure report.

How to clear negative balance in bank account? ›

Deposit Money into the Account

Once you understand your situation, take action. Deposit enough money to ensure that you won't overdraw again. Remember to include not only the money you need to bring your balance back into positive territory, but ideally put in enough to give yourself some cushion.

How do I get off the bank blacklist? ›

This might include paying off debts, maintaining good financial behavior, and rebuilding creditworthiness. Once the debts are settled or resolved, the blacklisting or associated fees may eventually expire or be removed, depending on the bank's policies and credit reporting regulations.

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