ChexSystems: What to Check After a Bank Account Denial
A person can have a good credit score and still run into trouble opening a checking account. Sometimes the issue is information in a separate banking report, not a traditional credit report.
Before trying another account, including SoFi Banking, identify the report named in the denial. A different bank is not a guaranteed way around the reason your application was declined.
What ChexSystems does
ChexSystems is a specialty consumer reporting company that helps financial institutions screen checking and other deposit-account applications. Its report can include account applications, openings, closures and check-writing history. It is not the same as your FICO score.
When you might need to check
If a bank or credit union denies your application, read the notice. It should identify the consumer reporting company used in the decision. If ChexSystems was involved, request your disclosure instead of assuming the problem came from one of the three nationwide credit bureaus.
How to get your report
Start with the official ChexSystems website. You may request a free consumer disclosure at least once every 12 months, and additional free disclosures may be available in certain circumstances. The Consumer Financial Protection Bureau’s ChexSystems listing explains report requests and consumer rights.
What to look for
Compare account-opening dates, closures, reported negative balances, identifying information and any unfamiliar entries against your own banking records. Look closely at the name of the financial institution that supplied the information.
What if something is inaccurate?
You can dispute inaccurate or incomplete information with ChexSystems and with the institution that supplied it. Explain the exact entry you question and provide supporting documents if you have them. The reporting company must conduct a reasonable investigation under applicable consumer-reporting law. An accurate negative entry cannot simply be removed because it is inconvenient.
What to do next
If the report appears correct, ask the bank which account options it offers and whether any unpaid balance or older account issue needs attention. If the report contains an error, dispute that specific entry first. Don’t pay someone just to request your own disclosure. If you later compare SoFi Banking’s account options, check eligibility, fees and cash access against your needs before applying.
Sources
CFPB: Checking account consumer reports · ChexSystems official site
This article is for general information. Neither service replaces the reports available through AnnualCreditReport.com. Do not send personal identifiers through this website.
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