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Chex Systems -- A List You Definitely Don't Want to be On!
Have you been turned down when you tried to open a new bank account? If so, there's a pretty good chance that the bank denied you because you are on the Chex Systems list. You may have gotten on the list by bouncing checks, overdrawing your account, owing a bank money, or somehow cheating a bank. If you are on the list, you will have a difficult time opening a new bank account. You may even be terminated from an existing bank if you get on the list because of account problems at another bank.
Most of us open bank accounts when you get our first job (sometimes when we are in high school). It is a big responsibility -- but nobody ever teaches us how to use a bank account. This article provides you with some tips on how to use a bank account so that you don't end up on the Chex Systems list.
What is Chex Systems?
To Avoid Problems, You Should Know What Chex Systems is...
Chex Systems is a credit reporting agency. They are similar to Experian, Trans Union and the other, more famous, credit reporting agencies. The difference is that Chex Systems only tracks bad banking behavior (unlike the other credit bureaus, Chex Systems doesn't give you points for good banking behavior). Instead, banks and credit unions just report data to Chex Systems about people who "mishandle checking and savings accounts." Once you get in the Chex Systems database, your bad record stays in there for a long time -- five years or longer. So, it is important to avoid any bad banking behavior that can get your name on the list.
Ok, It is Bad to be on Chex Systems List -- How Do I Stay Off?
... it's simple (in theory!)
Bouncing a check now and then will probably not get your name in the Chex Systems list. In general, only people who exhibit severe mishandling of accounts should end up on the list. Here are a few tips to keep off the Chex Systems list:
These tips may seem common sense. However, when money is tight and you are living paycheck to paycheck, it can be difficult to follow them. Please remember how difficult it will be to get off the Chex Systems list. Your banking relationship is important! Don't jeopardize it.
If you are on the Chex Systems list, you can get more tips on how to get off the list or get a bank account at a non Chex Systems bank.
- Always make sure to have money in your account when you write a check -- don't try to "float" a check! New banking technologies make it extremely difficult to float a check, as most checks you write will clear or post in one or two days.
- Keep track of your account balance. You don't need to "balance" your checkbook each week, but you do need to generally know the status of your account. If you are going to write a check, always double-check your balance.
- Plan ahead for any scheduled withdrawals. If you have money automatically scheduled to be withdrawn from your account, always make sure you know when the money will be debited, and plan for it. Many people repay loans (such as payday loans or cash advances) with "ACH" debits to their account. These debits are just like checks, and you need to make sure you have funds available when the debits are scheduled to hit your account.
- Be careful with ATM or debit card transactions. Don't withdraw money from an ATM, or use your check card if you have outstanding checks that have not cleared and insufficient funds to cover both. The ATM or debit card transaction may clear, but the check will bounce.
- Always settle your debts or outstanding balance with a bank as soon as possible. The fastest way to get reported to Chex Systems is to owe your bank money.
These tips may seem common sense. However, when money is tight and you are living paycheck to paycheck, it can be difficult to follow them. Please remember how difficult it will be to get off the Chex Systems list. Your banking relationship is important! Don't jeopardize it.
If you are on the Chex Systems list, you can get more tips on how to get off the list or get a bank account at a non Chex Systems bank.
Chex Systems related books from Amazon!
Your Checking Account: Lessons in Personal Banking
Amazon Price: $14.03 (as of 12/18/2009) 
Math for the Consumer : Checking Accounts, Paychecks, and Basic Buying
Amazon Price: (as of 12/18/2009)
Opportunities vs ethics. (analysis of retail checking account pricing strategies): An article from: Bank Marketing
Amazon Price: $5.95 (as of 12/18/2009)
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- sankar sankar Apr 28, 2008 @ 4:11 am
- Nice lens. This lens provided good information on chexsystems list.
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- Apr 28, 2008 @ 4:03 am
- Chexsystems list may be so crucial to open an account. thank you......
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- Lakshmee Lakshmee Apr 9, 2008 @ 12:02 am
- Many of us do not know how to use bank account properly. We may in chex systems list by this problem and it will come at the time of rejection of account and no chances for open an account in any bank. Please have a look on this site may help you to out of chex systems list.
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- Apr 8, 2008 @ 11:58 pm
- Really very tough situation to open an account who are in chex systems list. We will face lot of problems. This site provided more information on chex systems how to stay off from it. Thank you.....
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- aliveworldwide aliveworldwide Jan 12, 2008 @ 10:39 am
- What a terrific lens! Thanks for all the great information... I gave you 5 stars!
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by klehman
Klehman is a financial services author, writing articles about Chex Systems, banking, financial services, payday loan debt and other banking and credi... (more)
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