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How to Improve ChexSystem Score and Maintain Credibility?
Wednesday, 06 June 2018

ChexSystem is a database used by banks to find out about the credibility of a person before allowing the person to open a checking or savings account in their bank. The ChexSystem report of a person will have all details related to the handling of previous bank accounts by the person.


Say that you have a history of improperly handling your previous bank like bounced payments, negative balance etc., then you will have a low ChexSystem score. If you have a low ChexSystem score, then banks will hesitate from offering you a savings or checking account.

There are many trusted banks known as second-chance banks that don’t use ChexSystem which is best for people who immediately need a bank account. You can find a list of trusted top-level second-chance banks in the article at Creditful.

However, if you are interested in improving your ChexSystem rating to stay out of any negative records, then today we are here to help you clear your ChexSystem record and improve credibility.

How to Improve ChexSystem Score?

Even though every bank account holder will have a ChexSystem record in their name, ChexSystem will only register negative information related to using or maintaining your bank account.

Hence, it is first important to know the activities that are most likely to be registered as negative information in your ChexSystem record. Below are some such important activities with negative impact on your ChexSystem record:

? If the bank itself closes your account.

? Multiple bounced check/overdraft instances in your account.

? Negative balance pending to be paid by you to your bank.

? Dishonest or risky use of ATM, Debit/Credit card, Savings account etc.

? Fraud check instances or checks outstanding in the SCAN database.

? False identity information provided to the bank.

? Any ongoing or past inquiries on you or your account.

? Losing of debit cards and checks.

Apart from these activities, the ChexSystem also routinely updates other information related to your banking activity in their database. This information includes your check issuing behavior for the last 3 years, the number of bank accounts opened in the last 90 days etc.

Now below are some tips that you can follow in order to improve your existing ChexSystem score.

? The first and foremost thing to do in order to improve your ChexSystem score is to pay off any pending negative balances or debts you owe to the bank. You can find any pending debts to any banks from your ChexSystem report and pay them off will help in rebuilding your score. Also, once you settle all the debts with a bank, make sure to get it in writing and keep all related invoices and bills safely.
? All the data in your ChexSystem report may not be correct and accurate. Therefore, make sure to analyze your ChexSystem report thoroughly once and in case you find any inaccuracies or errors, raise a dispute with ChexSystems and also with the bank who has reported the error. Every person with a ChexSystem report has complete rights to raise a dispute in case of any errors in their report. Disputes can be raised online, over the phone, or even by sending a fax or email.
? If you see negative reporting by banks with whom you have settled all the debts in the past, get in touch with the bank authorities and request them to remove the negative information and update that you have cleared all the pending debts.

Final Words

Once you attain a low ChexSystem score and follow the steps to improve it, it will definitely take some time to see the changes in your ChexSystem report. Negative reporting can stay up to 5 years unless it has been successfully disputed.

So, even if you follow the procedures to improve your ChexSystem score, you will have to wait at least 3 years until you can get see a better score in your ChexSystem report.
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