Picture this. You submit your application for a new bank account, but your application is rejected. The merchant you wrote a check to also won’t accept it. This is a scenario that several people have found themselves in due to the Chexsystems. Chexsystems is an agency widely used by banks to determine the eligibility of applicants to open for new accounts. It keeps the record of a person’s banking history and reports negative information such as insufficient funds, fraud, and owing money in service or overdraft fees when your account was closed. These are a few of the reasons for negative records which can render you unable to get an account or write a check unless a bank gives you a second chance. To avoid such problems, here are ways you can avoid negative records.
Criminals online are constantly looking for ways to access bank account details. If a thug gains access to your account he might steal your identity and use it for fraudulent activities; a reason for your account being closed and negatively recorded on Chexsystems. It is therefore important to protect your account. Simple things like using strong passwords and not disclosing them go a long way in protecting your account. Criminals often use different means to gain confidential account information such as phishing and social engineering scams. Being aware of these mechanisms and having the ability to recognize attempts to steal your information is also important.
Manage your account well
Constantly having insufficient funds in your account and writing checks that bounce could also land yours on the negative side of Chexsystems. Bank accounts also attract different service charges which may pile up if your account does not have funds. Requesting multiple bank overdrafts within too short a time period could also land you in trouble, causing a bank to close your account and send your records to Chexsystems. You should try as much as possible to avoid these.
Pay your debts
Ensure that you submit your payments on time if you owe the bank any money. However, if it’s impossible for you to pay up, try having a conversation with your creditor. Some might work out a payment agreement with you, but in case a creditor goes ahead and forwards your records, there’s a chance you can redeem yourself. If you have a debt, you can clear your record by paying up and asking your creditor to send updates to Chexsystems. If, however you check your records and find it to be incorrect, you should file a dispute and make sure that you have the evidence to support your claims.
Review your report
Check the status of your records on Chexsystems so that you are aware if there is a problem. Once you know the status, you need to know the policies and check systems of any bank you want to open an account with. This is important because if you are a mother with tight finances, you don’t want to make an initial deposit only for the bank to reject your application after checking your report.