How Can You Clear Your ChexSystems?

If you are having trouble opening a new account, it can be because of the ChexSystem report. Yes, this report can maintain all the negative items on your different accounts. You should clear your ChexSystems report to improve your chances of getting approval. If not, you won’t be able to open an account until the negative items eliminate themselves after five years.

What is ChexSystem?

ChexSystem is a consumer credit reporting agency and checks verification service like credit reporting agency Experian. But the main difference between them is that ChexSystem only records your deposit accounts with credit unions and banks.

Moreover, this organization maintains a record of specific account activities. They also have a record of the reasons you closed accounts. Many credit unions and banks use this information to decide whether they should approve your application or not. Here are some items that might show up on your accounts:

•  bounced checks and overdrafts
• involuntarily account closure
• account, card, or ATM abuse
• unpaid negative balances
• number of account applications submitted recently
• identity theft or suspected fraud

Each credit union and the bank have different methods to report different account activities to the ChexSystem. Also, they use different criteria to decide which activities prompt them to deny your application to open an account. To make sure that you don’t experience denial, you need to clear your ChexSystems.

Why It’s Important to Clear Your ChexSystems?

Your ChexSystems report is one of the important factors that helps credit unions and banks decide whether they want to work with you or not. This is truer in instances when you need to open a new account. Since you might need to open an account for multiple reasons at any time of your life, it’s important that your report only contains accurate information. Also, if you don’t clear your ChexSystems report, you might have lower chances to open a new account. So, it’s better to fix your report before submitting your application for the account opening to get outcomes in your favor.

How Can You Clear Your ChexSystems?

Clearing your ChexSystem will help you remove negative information from all your accounts that ChexSystem, a consumer credit reporting agency, has collected over the years. This agency holds information such as how many accounts you have used in the past, how much debt you have, and other negative things on your account.

If you are planning to open a new bank account, the organization you have chosen to open the account most likely checks your ChexSystem to verify your information and to understand your history with other accounts. So, it’s best to clear your ChexSystem so that your past mistakes aren’t a hindrance in your financial life.

Here are some of the steps that you need to take to clean up your record before you open a new account.

Request a Copy of Your ChexSystem Report

Begin the process by requesting a copy of your ChexSystem. This will help you understand what is in it. Note that federal law allows you to get one free copy every 12 months, allowing you to request it at any time of the year. Also, you can submit your request by phone, online, by fax, or by mail to ChexSystem. When you make a request, you will most likely receive your report in less than five business days.

Once you get your report, it’s time to analyze it from top to bottom. Keep in mind that you need to remind every detail of your past and current accounts. So, if you have a bad memory, you need to compare your documents and online account information with the ChexSystems report. Just make sure that your bank account and personal information are correct on the report.

While verifying the information, don’t forget to check the following things:

• Check that your social security number, address, name, and driver’s license present on the report are accurate.
• What type of information has been reported, like non-sufficient funds activity and fraud alerts? For instance, look for information on security or fraud alerts, unpaid checks, and returned checks.
• Look for who has accessed your report’s information in the past years.

This will give you a clear idea about your current report and how you will pay off your outstanding balances owed associated with electronic payments or returned checks. If you are having trouble understanding the report by yourself, take help from financial experts. They can help you analyze your report and help you understand what steps you need to take next.

Dispute Errors

Do you think some of the information on the report is inaccurate? If so, collect supporting documents such as bank statements or payment records. Now, go to the Dispute Information section on the ChexSystems’ website. Below you will find the option, ‘submit your dispute.’ Click on it.

 Here are a few methods- you can choose one of them for further process.

Online

When you click on the “submit your dispute,” you will find an option to do it now. Once you click it, you will be taken to a form that you need to fill out. You also need to upload documents that support your claim. When everything is done, click “submit” at the bottom of the page.

Phone

This doesn’t require you to check the website. Instead, you can call the ChexSystems and speak to one of their representatives. This option works best for people who don’t have any proof of their claim. The representative will help you understand what you can do to dispute your errors. Note that you can’t make disputes involving identity theft or fraud by phone.

Mail or Fax

For this option, you need to go on the same page and click the “submit your dispute” option. Now, click on the “read more about other methods of submitting a dispute.” Look for the option to request an investigation. After clicking that option, you need to print out a form. Fill in the accurate information and attach copies of the supporting papers with it- they should not be originals. You can find fax or address details on the same page. After completing the form, you can either send it to the address or fax it.

When you submit your application, the next step depends on you. You can either wait for the ChexSystem to contact your credit union or bank to mail who has reported false information about your accounts or mail a dispute to the bank yourself.

Furthermore, your financial institution and ChexSystem have 30 days to check the dispute. If they find out that the information is incorrect or completely wrong, then they are obliged to correct it by federal law. Whatever decision they take, you can add a detailed statement to your report if you aren’t satisfied. This will help you make them understand your problem.

Pay Off Balances

While you will be verifying the information on the report, you might also see the money you owe to different institutions. If yes, start making your debt payments to the respective institutions to get rid of any balances you owe. People can also try to reduce their balances. For this, talk to the customer representative of your bank or visit the bank by yourself. Based on your financial history and condition, they might be willing to waive all or some of your debt for you. Even if they don’t, they will at least help you understand what the charges are for and how long your account will stay negative.

Furthermore, if you have balances that you owe on different accounts, call each bank separately or visit them. You need to work with every bank to get rid of the balances you owe. Since each bank has its own policies, some of them might waive off the balance you owe, while others may ask you to pay. Also, based on your financial health and the bank’s policies, they may ask you to pay in full or give you a payment plan.

Ask Creditors to Report ChexSystem

Another step that you need to take to clear your ChexSystems is to ask your creditors or bank to report the organization that you have paid in full. When you have disputed your errors and paid all the balances you owe, the negative information on your report needs to be removed. So, begin this step by contacting each institution and asking them to remove the negative history from your ChexSystem report.

They will verify the information and might take a few days to do that. Also, when you request organizations to remove this information, it’s best to do it in writing. Hence, send snail mail or an email. This way, you will have a written document that you can show in the future when you find incorrect negative information on your report.

Wait Till the Record Drops off Your Report

The last thing you need to do is to wait for the banks or creditors to remove negative information from your report. ChexSystems keeps information in your file for around five years unless or until any institutions request to remove it from the report. This means even if you paid your balances in full, the information would stay on your file until ChexSystems got a request for removal and supporting documents to remove them. Of course, the removal process will be carried out according to ChexSystems policy.

If you have any negative items on your report that are nearing the five-year mark, you can just wait for them to go away on their own. This way, you don’t have to put extra effort into the removal process. However, make sure to get a copy of the report after the five-year mark has passed to check whether ChexSystems has eliminated the information or not.

Clear Your ChexSystems: How to Open a Checking Account without ChexSystems?

Although many credit unions and banks check your account history through the ChexSystems report, some institutions offer you a second-chance banking option. These financial organizations are either willing to ignore some negative items on the report or don’t check your report at all.

Some of the popular financial institutions that offer this service are:

• Green Dot
• TD Ameritrade
• Capital One 360
• Wells Fargo
• Chime
• MemoryBannk
• BBVA Compass
• Radius Bank

You can also find some local and regional banks and credit unions that offer second-chance banking services. Once you find the right institution, call them directly to find what procedures they offer to open an account.

Bottom Line

You can clear your ChexSystem, but it’s not an easy task. You must fill out the form accurately and submit an appropriate supporting document. Making any mistakes in the process will reduce your chances of clearing up negative items. If you think you can’t complete the process on your own, you can contact experts like Credit Follows for help.

We have a skilled team of experts who have years of experience and high qualifications that will help you prove your point. Our professionals go by all the policies and rules to make sure that you can clear your ChexSystems. Since the process of removing negative items on your report entirely depends on the supporting documents, we make sure that you gather the right paperwork for it. We make sure your request looks precise but effective so that the authorities can easily verify the information. To ensure you get approval, we cross-check every piece of information on the form and documents.

So, if you need help, you can call Credit Follows to either understand the process, to know whether you can remove negative items, or to get help to submit your request.