Got denied a bank account and left wondering why? In most cases, it comes down to your ChexSystems report—a file banks use to flag issues like unpaid fees or overdrafts.
You don’t have to stay in the dark. Here’s how to order your ChexSystems report for free, understand what’s in it, and start fixing any problems that might be holding you back.
What is ChexSystems?
ChexSystems is a consumer reporting agency that about 80% of banks use to screen applicants. It tracks things like unpaid overdrafts, bounced checks, and account closures due to mismanagement.
Even a small mistake—like an unpaid $30 fee—can land you in their system and make it harder to open new accounts. If you’re new to all this, here’s a more in-depth look at how ChexSystems works and why it matters.
Why Won’t the Bank Employee Tell You More?
If you’re wondering why the bank employee couldn’t explain your ChexSystems status, it’s not because they didn’t know. Bank employees can see the basic details of your record, but they’re restricted from sharing specifics. This policy is in place to protect your privacy and ensure that all customers are screened fairly.
It can feel frustrating not having answers, especially when you’re ready to resolve any issues. Thankfully, you don’t have to stay in the dark—you can request a copy of your ChexSystems report directly to see exactly what’s affecting your account access.
How to Order Your ChexSystems Report
If you’ve been denied a bank account, you have the right to see what’s on your ChexSystems file. Under the Fair and Accurate Credit Transactions Act (FACTA), you’re entitled to one free copy of your ChexSystems report every 12 months.
- Online Request – Visit the ChexSystems Consumer Disclosure page and follow the prompts to submit your request securely.
- By Phone – Call 800-428-9623 and provide your information through the automated system.
- By Mail – Download and complete the Consumer Request for Disclosure Form, then send it to:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125 - By Fax – Fill out the same form and fax it to: 602-659-2197
Once your request is received, ChexSystems will mail your report within five business days. Delivery times may vary depending on USPS.
What Your ChexSystems Report Will Show You
Once your report arrives, you’ll see a list of entries from banks or credit unions that reported negative activity. Each entry includes details that can help you understand what happened and what steps you might need to take.
Your Personal Information
Make sure all of this is accurate—errors here could signal identity theft or a reporting mistake:
- Name
- Address
- Social Security number
- Driver’s license number and state
Bank or Credit Union That Reported You
This tells you which institution flagged your account:
- Source of information
- Routing number
- Account number
Reason for the Report
This section is key to determining why you were denied an account:
- Date reported
- Reason for reporting (e.g., non-sufficient funds, unpaid fees, suspected fraud)
- Closure status (whether the account was closed in good standing or not)
- Closure date
Pay close attention to the reason and closure status. Banks take some offenses more seriously than others. For example, an overdraft that was paid off may not hurt you as much as unresolved fraud. If something doesn’t look right, you may need to file a dispute.
How to Dispute Errors on Your ChexSystems Report
If something looks wrong on your report, you have the right to dispute it. Errors can include accounts you never opened, fees you already paid, or incorrect personal information. Fixing these mistakes can improve your chances of getting approved for a new account.
Ways to File a Dispute
ChexSystems typically investigates disputes within 30 days. You can start the process using one of these methods:
- Online: Submit your dispute through the ChexSystems dispute page.
- By Mail: Send a written dispute to:
Chex Systems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125 - By Phone: Call 800-513-7125 to begin the process over the phone.
What to Include With Your Dispute
- Proof of identity: Copy of your driver’s license or passport
- Social Security verification: Copy of your Social Security card
- Relevant account documentation: Statements or receipts that support your claim
- Written explanation: A short statement describing the error and why it’s incorrect
If You Suspect Identity Theft
Take extra precautions to protect yourself:
- Contact ChexSystems to flag your file for potential fraud
- Place a fraud alert on your credit file with Equifax, Experian, and TransUnion
- File an identity theft report with the FTC
- Consider freezing your credit reports to prevent new accounts from being opened in your name
Once ChexSystems finishes their investigation, you’ll receive an updated report showing the results.
Tips for Improving Your ChexSystems Record
If your ChexSystems record has negative marks, there are steps you can take to improve it over time. Building a better record can open up more banking options in the future. Here are some practical steps to help you get started:
- Pay off any outstanding fees: Contact the bank or credit union that reported you and settle any unpaid overdrafts or fees. Clearing these balances can help improve your standing with ChexSystems.
- Monitor your ChexSystems report annually: Like a credit report, your ChexSystems report should be checked for errors or new entries. Reviewing it each year ensures you catch any mistakes early.
- Practice responsible banking: If you open an account with a non-ChexSystems bank or a second-chance account, keep it in good standing. Avoid overdrafts, maintain positive balances, and use the account responsibly.
- Consider opening a second-chance account: Many banks offer second chance checking accounts specifically designed for people with a history in ChexSystems. These accounts provide a chance to rebuild your banking history and, over time, may help you qualify for traditional accounts.
Consistent, positive banking habits can strengthen your ChexSystems record. With time, this approach may improve your eligibility with a wider range of banks.
What Can You Do in the Meantime?
While you’re working on improving your ChexSystems record, there are still banking options available. Many banks and credit unions offer accounts for people with a ChexSystems record or those with bad credit. Some institutions provide bank accounts for bad credit that include essential features like online bill pay, debit card access, and direct deposits.
You can also explore banks that don’t use ChexSystems if you need a fresh start. These banks can give you a chance to manage your finances effectively without worrying about ChexSystems. Over time, consistent and responsible banking habits may help you qualify for a wider range of accounts.
Final Thoughts
Dealing with a ChexSystems record can feel overwhelming, but there are steps you can take to improve your situation. Ordering your report, disputing any errors, and considering second-chance accounts or banks that don’t use ChexSystems are all proactive ways to get back on track. With time, consistent banking habits can open up more options for you.
Remember, having a plan can make all the difference. Whether you’re looking to clear up your record or find an alternative banking option, there’s a path forward. Taking these steps can help you get the financial fresh start you need.
