Chex Systems:10 Ways To Maintain A Positive Chex Systems Report

Did you know that mishandling a checking or savings account can negatively impact your report with ChexSystems?

It's crucial to maintain a favorable score because 80% of banks and credit unions will review your report with Chex Systems anytime you decide to open a new checking or savings account.

This consumer credit agency is very different from Equifax, Transunion and Experian because the data it collects and supplies to over 9,000 financial institutions shows whether or not an applicant has a history of mishandling a checking or savings account.

You can get a negative report when your financial institution closes your account for "cause" and reports it to this agency. The reasons behind an account being closed can vary between banks and credit unions.

Here are some examples:

*Excessive bounced checks

*Abuse of a debit card or ATM

*Unable to collect for an account overdraft

*Multiple account overdrafts

*Fraud

If you get an incident reported to Chex Systems it stays on your report for five years but just because you are on Chex Systems does not mean that you will be denied a checking account at every bank.

Some banks like Bank Atlantic will allow you to open a bank account with only one incident. While other banks like Compass do not even pull a Chex Systems report but instead pull a Telecheck report.

Here are ten ways to maintain a positive report with Chex Systems:

1) Stop all automatic payments prior to closing a checking account. Keep in mind that some companies may take weeks to process your request so prepare for additional payments that could be deducted from your account.

2) Close your account directly with your bank or credit union. Don't allow maintenance fees or overdraft fees to accumulate causing a negative balance.

3) Allow adequate time to pass when depositing checks prior to writing checks against the balance.

4) Always balance your checkbook and avoid overdrafts at all costs. You can easily avoid this by adding overdraft protection to your account.

5) Be careful with having a joint account because regardless of which person mishandles the account both account holders are responsible.

6) Protect your bank debit card and Personal Identification Number (PIN) at all costs. Allowing someone else to access your funds opens your account to potential abuse.

7) Avoid post-dating a check because it can be cashed early. If you bounce checks and cause excessive overdrafts then your account may end up getting closed.

8) Review your bank statements regularly. If you uncover any additional fees or unauthorized charges notify your bank immediately.

9) Always notify your bank when you change your address. It may take time for your next statement to arrive so sign up for web banking if it's available.

10) Report lost or stolen checks to your bank immediately. Do everything you can to protect yourself from check fraud like shredding old checks, reconciling bank statements, and keeping statements secure.

If you have been denied an account from a bank or credit union, and Chex Systems was used, you are entitled to a free ChexSystems Consumer Report.

Under the Fair and Accurate Credit Transaction Act (FACTA), you are also able to receive a free copy of your Chex Systems Consumer Report at your request, once every year.

If you believe that any of the information in your report is incorrect or incomplete you can file a dispute with Chex Systems and expect to receive results within 30 days. This is similar to the consumer credit repair process when disputing items on your personal credit reports.

Take these ten steps to avoid incidents like bounced checks and overdrafts so you can maintain a positive report with agencies like Chex Systems.