Key Takeaways
ChexSystems is a consumer reporting agency that tracks your checking and savings history, not your credit. Its reports mostly show negative items.
You can request one free ChexSystems report every 12 months online, by phone, by mail, or in accessible formats.
ChexSystems generally doesn't affect your credit score directly, but a debt that goes to collections can.
Records usually stay about five years. Some financial institutions don't use ChexSystems, and second-chance accounts or prepaid cards offer other paths.
Switching banks or opening your first account usually means filling out an application. Many banks and credit unions check ChexSystems to see if you have negative banking history. So what is ChexSystems, how do you get your report, and how can you open an account if a bank turns you down?
What is ChexSystems and how does it work?
ChexSystems is a specialty consumer reporting agency that tracks how people manage checking and savings accounts. A consumer reporting agency collects information about you and shares it with businesses that have a legal reason to see it. The Fair Credit Reporting Act, or FCRA, sets the rules ChexSystems follows.
Banks and credit unions often review these reports when you apply for a deposit account, like checking or savings. A ChexSystems report works like a credit report, but it covers only your banking history. It mostly lists negative items, such as unpaid fees or a bounced check.
Your report might hold just one item, like a single overdraft. An overdraft happens when you spend more money than your account holds.
ChexSystems focuses on accounts a bank or credit union closed for cause, along with returned checks, inquiries, and check orders. It doesn't include open account details or accounts you closed in good standing.
What is a ChexSystems report?
Your report shows how you've handled checking and savings accounts over time. Think of it as a credit report for your banking history.
The report can show accounts a bank closed for cause and the reason for each closure. Banks and credit unions often pull your report when you apply for a new account. Most negative information stays on your record for about five years.
What is on a ChexSystems report?
The Consumer Financial Protection Bureau, or CFPB, is the federal agency that oversees consumer financial products. The CFPB notes that these reports can show common banking problems like unpaid negative balances, suspected fraud, and bad checks. Here's what each item on your report means.
Item | What it means |
Unpaid fees or negative balances | You still owe a bank or credit union money, such as unpaid fees or a balance below $0. |
Bounced checks or overdrafts | You wrote a check or made a payment without enough money in your account. |
Account closures by a bank or credit union | A bank or credit union shut down your account for a reason like an unpaid balance, suspected fraud, or misuse. |
Suspected identity theft or fraud | A bank or credit union flagged activity that looked like fraud, or someone may have used your identity. |
Inquiries | A bank, credit union, or other company requested your report, often when you applied for an account. |
Banks and credit unions use this information to predict how you might handle a new account. A clean report can make opening an account easier.
How long does information stay on ChexSystems?
ChexSystems generally keeps negative information on your report for about five years. Federal law bars consumer reporting agencies from sharing most negative information older than seven years.
Paying off what you owe can still help. The bank or credit union may update your record to show you paid the balance. Paying may not remove an accurate item, though, so it may stay until the reporting period ends.
What is a ChexSystems consumer score?
ChexSystems also creates a consumer score that estimates how risky you might be as an account holder. The score falls between 100 and 899, and a higher number signals lower risk.
Banks and credit unions may use different scoring models. Each financial institution also sets its own approval rules, so no single number guarantees approval.
This consumer score isn't the same as your credit score. Your credit score reflects how you handle borrowed money, while this consumer score focuses on deposit accounts.
How to know if you have a ChexSystems report
If a bank or credit union has never turned you down, you've probably never thought about your banking report. If your accounts are in good standing, your report is likely in good shape.
It's still smart to check, since errors or identity theft can show up on your report. A quick review can help you spot problems before you apply.
How to get a free ChexSystems report
The FCRA gives you the right to request your ChexSystems report at no cost every 12 months. If a bank turned you down because of your report, you can also request a copy without paying a fee.
Review every item once your report arrives. Cross-check the accounts, dates, and balances against your own records, and flag anything that looks wrong.
You have several ways to request your report. Pick the method that works best for you.
Method | How to request |
Online | Request your report through the ChexSystems Consumer Portal at chexsystems.com. |
Phone | Call 800-428-9623. The automated line runs 24 hours a day, and representatives answer between 8 a.m. and 7 p.m. CT, Monday through Friday. |
Send your request to Chex Systems, Inc., Attn: Consumer Relations, PO Box 583399, Minneapolis, MN 55458. | |
Hearing impaired | Call 7-1-1 for relay service and refer the operator to 800-428-9623. |
Visually impaired | Call 855-472-2911 to request your report in Braille, large print, or audio CD. |
A parent or guardian who's 18 or older can request a report for a minor by mail. Include the minor's birth certificate and Social Security card. Add your own driver's license or state ID and proof of your address.
How to dispute your ChexSystems report
Found an error? You can dispute it with the bank or credit union that reported it or with ChexSystems. Follow these steps.
Gather proof, like bank statements, receipts, or letters.
Submit a dispute with ChexSystems or contact the bank or credit union that reported the item.
Explain which item is wrong and why, and attach copies of your proof.
Wait for the investigation, which usually takes about 30 days.
Review the results you receive and keep copies for your records.
The CFPB notes that banks must also investigate disputes you send them. A dispute doesn't guarantee removal, since accurate information can stay on your report.
You can also clean up your record by paying what you owe. Once you've paid, ask the bank or credit union to update your record.
Do ChexSystems reports affect your credit score?
Generally, no. Traditional credit reports usually don't include checking history. Credit bureaus, the companies that build credit reports, track borrowing like loans and credit cards instead.
Your banking history can still affect your credit in a couple of indirect ways.
An unpaid overdraft balance can go to a collection agency, and a collection account can hurt your credit.
A denial can push you toward prepaid cards, which often charge fees.
Are there banks that don't use ChexSystems?
Yes. Some banks, credit unions, and financial technology companies don't use ChexSystems to approve new accounts. Some may check a different banking report instead, and each one sets its own approval rules.
Chime® is one financial technology company that doesn't use ChexSystems when you apply. Chime works with partner banks to offer online checking and savings accounts.
To find other options, shop around. Check each financial institution's website or call its customer service team and ask whether it uses ChexSystems.
What can you do if a bank turns you down?
A denial can feel frustrating, but you still have options. Start by requesting your report and disputing any errors, then consider these paths.
Apply for a second-chance checking account, which banks and credit unions design for people with negative banking history.
Consider a prepaid debit card, which you load with money ahead of time. Prepaid cards work without a bank account, and most charge fees.
Follow the steps to open a bank account with bad credit, like paying off old balances first.
Compare fees and requirements before you open any account. Our guide to second-chance bank accounts explains what to look for.
Set yourself up for banking success
ChexSystems plays a big role when you apply for a checking or savings account. A negative record can make approval harder, but it doesn't have to stop your progress.
Request your report, fix any errors, and pay off what you owe when you can. Each step can help you rebuild your banking history.
If you hit a denial, look at second-chance accounts or financial institutions that don't check ChexSystems. A fresh start often begins with one account in good standing.