What is ChexSystems and how does it work?

When you apply for a new checking account or loan from a bank, it’s not uncommon to have several different checks done on your history. These checks often look for issues such as debt, late payments, and defaulted payments. The results will usually help a bank decide if they will accept your application. ChexSystems is one of those checks.

What is ChexSystems?

ChexSystems is used by banks, much in the same way as they use Experian. It helps banks to decide whether a new customer can open up a checking account with them. Unlike Experian, which checks your credit score, ChexSystems investigates any checking accounts you’ve had in the past, and the reasons they were closed. Continue reading