If you’ve had trouble opening a bank account, there’s a good chance ChexSystems could be involved. ChexSystems is a consumer reporting agency that banks and credit unions use to assess applicants for new accounts. Around 80% of banks in the U.S. rely on ChexSystems data to screen for certain financial behaviors, like overdrafts or unpaid fees.
This agency also assigns each person a ChexSystems Consumer Score. This score, much like a credit score, indicates risk—high scores make you more favorable to banks, while lower scores may lead to account rejections.
In this guide, you’ll learn how ChexSystems scores work, how to request your score, and what steps you can take if your score is holding you back from getting a new bank account.
Factors That Affect Your ChexSystems Score
Your ChexSystems score is based on how you’ve managed your past bank accounts. If your score is lower than expected, these common issues could be the reason. Here’s what banks are looking at:
- Overdrafts: Repeated overdrafts or unpaid negative balances suggest risky behavior to banks and can bring your score down.
- Unpaid fees: If you left fees unpaid on a closed account, that debt could be reported to ChexSystems and hurt your score.
- Bounced checks: Writing checks without enough funds signals poor account management and may lower your score.
- Account misuse: This includes things like suspicious withdrawals, failing to follow account terms, or possible signs of fraud. These issues may get flagged on your report.
- Closed accounts due to mismanagement: If a bank closed your account because of unpaid charges or policy violations, that could show up on your record and affect your score.
Being aware of these risk factors makes it easier to avoid mistakes that could keep you from opening a new checking or savings account.
What Is a Good ChexSystems Score?
The ChexSystems score ranges from 100 to 899, with higher scores indicating a lower risk of future account closures. Unlike credit scores, ChexSystems doesn’t officially label scores as “good” or “bad.” Instead, it estimates the likelihood that an account might be closed “for cause” within a year.
Each bank interprets ChexSystems scores based on its own risk tolerance, often using “cutoff” segments. For example, a bank with a moderate risk tolerance may approve applicants with scores of 545 or above. Other banks may set their own thresholds based on how much risk they’re willing to accept.
Here’s a general idea of how banks might view different ChexSystems score ranges:
| ChexSystems Score Range | Risk Level | Typical Bank Response |
|---|---|---|
| 700 – 899 | Low Risk | Approval likely |
| 545 – 699 | Moderate Risk | Approval possible, depending on bank |
| 400 – 544 | Higher Risk | Approval unlikely without additional review |
| 100 – 399 | High Risk | Likely to be rejected |
This table offers a general guide—each bank may adjust these cutoffs to match their specific policies.
ChexSystems Score vs. Credit Score: What’s the Difference?
It’s common to confuse ChexSystems scores and credit scores, since they’re both numbers tied to your financial history. But they serve very different functions. Here’s how they compare and why banks look at them separately.
Why Banks Look at ChexSystems Scores
Credit scores focus on your history with borrowing—things like credit cards, auto loans, and mortgages. ChexSystems scores, on the other hand, look at how you’ve managed your checking and savings accounts.
Banks use ChexSystems to decide if you’re a safe bet for a new account. They want to know if you keep a positive balance, avoid overdrafts, and handle your account properly.
Let’s say someone has a strong credit score but a track record of unpaid bank fees. That person could still be flagged as risky by ChexSystems. The system gives banks a way to screen for account misuse, not missed credit card payments.
Risks Assessed by ChexSystems vs. Credit Scores
- ChexSystems Score: This measures your reliability with deposit accounts. It looks at things like overdrafts, unpaid fees, and whether a bank closed your account because of misuse.
- Credit Score: This number, produced by scoring models like FICO and VantageScore, is based on your credit report. It factors in payment history, total debt, and how long you’ve used credit. Credit bureaus—Equifax, Experian, and TransUnion—collect and report this data.
Both scores help financial institutions evaluate risk, but they focus on different areas. ChexSystems scores are about account handling. Credit scores are about loan repayment. That’s why someone could be denied a checking account even if their credit score is excellent.
How to Get Your ChexSystems Score
Planning to open a bank account? Checking your ChexSystems score can help you see what banks might notice when reviewing your application. Thanks to the Fair Credit Reporting Act (FCRA), you’re allowed to request a copy of your ChexSystems Consumer Score.
Steps to Request Your ChexSystems Score
The process is simple and only takes a few minutes:
- Go to the ChexSystems website: Look for the form labeled “Order Your ChexSystems Consumer Score.” You can fill it out online or print it and complete it by hand.
- Double-check your personal information: Make sure your name, address, and Social Security number are accurate. Mistakes can delay your request.
- Submit the form:
- By mail: Send your completed form to:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125 - By fax: You can also fax it to 602-659-2197.
- By mail: Send your completed form to:
Some versions of the form may also include online or phone options for faster service. Once ChexSystems receives your request, your score should arrive by mail within five business days.
How to Request a Score for a Minor
To request a ChexSystems score for someone under 18, you’ll need to send extra documentation:
- A copy of the minor’s Social Security card
- A copy of the minor’s birth certificate
- A photo ID for the parent or legal guardian
- Proof of the guardian’s address
If the parent or guardian is not listed on the birth certificate, include a court document showing legal guardianship.
Requesting Your ChexSystems Report
How to Request Your ChexSystems Report
Your ChexSystems score shows your overall risk to banks, but it doesn’t reveal the full story. To see the specific details influencing your score—like overdrafts, unpaid fees, or account closures—you’ll need to order your ChexSystems report.
The report lists every item financial institutions have submitted about your account activity. These entries directly affect your score and can be the reason you’re denied when trying to open a new account.
You’re allowed to request one free copy of your ChexSystems report every 12 months. It’s worth checking annually to spot errors or outdated information that could be hurting your chances of getting approved.
Ordering your report is a simple way to stay informed and make sure what banks see is accurate and up to date.
How to Improve Your ChexSystems Score
If your ChexSystems score is low, there are a few steps you can take to boost it over time. Here are some practical tips to improve your score and make it easier to open a new account:
- Pay outstanding fees: If you have unpaid fees with past accounts, settle these as soon as possible. Clearing these debts can make a positive impact on your ChexSystems profile.
- Avoid overdrafts: Keeping a positive balance and steering clear of overdrafts shows responsible account management. Setting up low-balance alerts can help you avoid overdrafts in the future.
- Check for errors and dispute them: Mistakes happen, and sometimes accounts may be reported incorrectly. Review your ChexSystems report and, if you find any errors, file a dispute with ChexSystems to correct inaccurate information.
- Keep track of your score: Request your ChexSystems score annually to see if your efforts to improve your financial habits are making a difference. Monitoring your score can help you stay on top of your progress.
Final Thoughts
A low ChexSystems score can be discouraging—especially if it’s blocking you from opening a new bank account. But you’re not stuck. Once you know what’s dragging your score down, you can start making changes to improve it.
That said, you don’t have to wait five years for your report to clear. Many banks offer options that don’t rely on ChexSystems at all. Non-ChexSystems banks and second chance bank accounts are designed specifically for people in this situation. They give you access to basic banking services while you work on rebuilding your record.
Whether you’re focused on fixing your ChexSystems history or ready to open an account right now, there are real solutions. Taking action today gives you more flexibility and better access to the financial tools you need.
