How to Check ChexSystems and Clear Your Report

Q: How long do you stay in ChexSystems?

Most entries stay listed in ChexSystems for five years from the date the information is reported. However, if there's inaccurate information or you've been a victim of debit card fraud, you could get entries removed sooner. You can access a free report at least once every 12 months to track any updates or changes within the system.

Q: How do I clear my name from ChexSystems?

You can either file a dispute with ChexSystems or directly with the reporting financial institution. ChexSystems has a form to fill out and you can submit supporting documentation. You may submit the form online, through mail, or get started on the phone. In order to succeed with clearing your history through a bank, you may need to negotiate payment for any outstanding balances owed.

Q: Do all banks check ChexSystems?

Most banks and credit unions do check applicant backgrounds in ChexSystems before approving an application. One option, however, is to apply for a second chance checking account. Some financial institutions offer this as an opportunity to rebuild your banking history.

How to Check ChexSystems and Clear Your Report

Lauren WardUpdated August 4, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

ChexSystems is a verification system that provides financial institutions with banking history data of applicants and customers. People with a negative ChexSystems report could be denied opening a bank account. Keep reading to find out what's included in a ChexSystems report, how to get a copy, and how to clear negative data that may be on there.

What Is ChexSystems?

ChexSystems is a national consumer reporting agency governed under the Fair Credit Reporting Act (FCRA). It collects consumer data related to checking accounts, which can be accessed by any financial institution with which you submit an application. ChexSystems is owned by Fidelity National Information Services, Inc.ChexSystems operates similarly to a credit bureau that collects data based on loan and credit payments, balances, and defaults. All of that information is analyzed to create a credit score, which creditors use to evaluate financing applications.Banks, credit unions, and other financial institutions use ChexSystems in much of the same way. When an applicant applies for an account, they can see if they've had a positive banking history.

What Is a ChexSystems Report?

A ChexSystems report includes information related to past banking relationships. Financial institutions report information to ChexSystems about existing and past customers, then request information on potential customers. Collected data includes:

Account applications
Openings and closures
Reasons for account closures

On a more granular level, a ChexSystems report contains negative activity, such as excessive overdrafts and bounced checks, unpaid non-sufficient funds or other fees, and any type of suspected fraud or account abuse.Others can request this information in certain situations, including:

A transaction you initiate (such as a checking account application)
A court order or federal grand jury subpoena
Certain applications for a government benefit or license
Some child support determinations

How to Check a ChexSystems Report

You can request a copy of a free ChexSystems report at least once every 12 months. The request process can be initiated on the ChexSystems website. Alternatively, you can ask for a copy via mail or over the phone. You may also get a free ChexSystems report if you've been denied opening a bank account. This allows you to understand what reasons were behind the denial. It's also smart to check your report if you think you've been the victim of any type of financial fraud or identity theft.Most adults have a ChexSystems report, but that doesn't mean there's any information actually listed there. If you've had a positive banking history, there won't be any negative entries on your report. Also note that if you have both personal and business checking accounts, only your personal account will be in the system. ChexSystems is targeted toward individuals, not companies.

4 Steps to Clear a ChexSystems Report

Wondering how to clear ChexSystems data? Here are the steps to take.

Requesting a Report

The first step is to request a report so you know exactly what information is included in your banking history. Once that is in hand, you can look at all of your records to make sure everything is accurate.

Disputing Errors

ChexSystems disputes are possible when you don't believe all of the information is accurate. The official online dispute form will prompt you to provide some personal information, as well as details on the entry (or entries) you plan to dispute.You'll have the chance to write about why you are disputing the information. There's also a place to upload supporting documentation. This can include things like verification of identity theft, police reports, a death certificate, or bank and credit card statements.While it's possible to get a negative entry removed, a report by the San Francisco Office of Financial Empowerment contends that it is "nearly impossible" to resolve a record with ChexSystems.

Paying Off Debts

Having an outstanding balance at a financial institution can impact your ability to open a new account elsewhere. But paying off that debt doesn't automatically mean you'll clear your ChexSystems report.In most cases, records are retained for a period of five years. Even if you pay off any money owed, the reporting financial institution does not have to remove it from your report. You can request it from the institution when you make your payment, but it's not a guarantee. Recommended: Negative Bank Account Balance: What Happens Next?

Requesting Removal of Negative Information

If you're unsuccessful disputing your report through ChexSystems, you can try communicating directly with the financial institution that reported your information in the first place. As mentioned earlier, it's best to make this request when you're paying off an owed balance. However, in order to ensure the financial institution follows through, be sure to get any agreements in writing. That way, you have documentation to support any delays if they don't remove the information from ChexSystems. Recommended: Guide to Second-Chance Bank Accounts

How to Get a Free ChexSystems Report

There are three ways to request your free ChexSystems report:

Submit an online request at any time
Call (800) 428-9623 during the hours of 8am-7pm CST Monday through Friday
Complete, print, and mail a hard copy dispute form to ChexSystems

The Takeaway

Your ChexSystems report has a major impact on the type of banking products you qualify for. But the information on there isn't permanent and there are ways to attempt to get negative entries removed.If you want to open a high interest savings account, consider Lantern by SoFi. High interest savings accounts allow you access to your money at any time, all while earning more interest than with a traditional checking account.Lantern can help you compare high interest online savings accounts and find today’s best rate.

Frequently Asked Questions

How long do you stay in ChexSystems?

How do I clear my name from ChexSystems?

Do all banks check ChexSystems?

Photo credit: iStock/nortonrsx

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About the Author

Lauren Ward

Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.

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