What is ChexSystems and How Do I Deal With It?

When you owe a person and unfortunately you were not able to pay on time or you have not paid at all, there are remedies. You may ask for an apology and pay and the two of you are back to normal. The problem comes when you owe, not from a person, but from lending companies.

This happens when you had a shopping spree and maxed out your credit cards only to find out you have buried yourself alive in debts. There may be a time when you might have missed payments due to a shortage of fund or lack of sources to pay. You may still have a remedy but it is not as simple as just pay and say sorry.

What is ChexSystems and How Do I Deal With It?

Your negative financial remarks have been noted and stored in what is called as ChexSystem. Find more about this by checking this https://letmebank.com/best-non-chexsystems-banks/. In line with this, the current article deals with ChexSystems and how are going to deal with it.

The Nature of ChexSystem

ChexSystem is a systematic record of information concerning negative remarks of certain customers. A lot of banks use this to evaluate and filter customers and save them from the risk of making big loan agreements with people who are considered as high risks. A person is considered as a high risk when such has consistent bad reports of either late payments or unpaid debts, involved in theft-related crimes, and other heinous crimes. When such a person applies in another bank, he or she may not be allowed to open in order to avoid risk on the side of the bank and its customers. Hence, that person may apply only in banks that do not use ChexSystems which is very hard to find considering that almost 80% of banks in the US are using ChexSystems.  

Remedies in Dealing with ChexSystem

Dealing with ChexSystems is a matter of wisdom and patience. There are ways to deal with it as long as you are familiar with the system.


  • Monitor your Credit Report and Rating – diligence is the primary characteristics needed by a person in order to deal with ChexSystems. By constant monitoring, you can plan your finances well and at the same time, you develop a sense of certainty that all things are becoming well. Furthermore, you may have enough basis to dispute when things become worse.



  • Make a Dispute – considering that your bank has mistakenly reported you to ChexSystems due to a reflected non-payment because of offline or technical glitches, you can correct it. The correction process is called a dispute. In doing this, you must have a copy of your credit report, write a letter disputing the report with the copy of the credit report as supporting documents.



  • Maintain a Good financial record – a good financial record is equivalent to a good credit report with a high credit score. This is achieved through diligent monitoring and payment of term dues. This is important because chexSystem relies so much on credit reports. Thus, don’t miss a payment in your credit.



  • Maintain a Good Public record – aside from good credit report, a good public image may also be essential in dealing with ChexSystems. This includes being a good citizen that follows the law, rules, and regulations.



  • Find a bank that doesn’t use ChexSystem – not all banks use this system of recording despite the fact that 80% of banks in the US are under ChexSystems. You still have your luck because there is still a meager 20% that do not use. Usually, these are small banks in rural areas that offer second chance checking accounts.



There are many ways on how to deal with ChexSystem. Primarily it begins from consistent monitoring, writing a dispute if necessary, maintaining a good financial and public standing. All these require patience. Nevertheless, ChexSystem is a brilliant way to secure financial stability especially for banks and other stakeholders. It prevents harmful people from gaining access financially. However, if you are in that position, it may be bad for you.

In addition, knowing well the system makes a better chance on how you can work around. But more than the technical aspects, prevention is still better than cure. Means to say, improve your financial knowledge and have wisdom in order to make prudent financial decisions. With this, you don’t have to keep minding the ChexSystems.

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