ChexSystems: Like a Credit Score for Your Banking Habits
You’re probably well aware of the existence (and importance) of credit scores, even if you couldn’t cite your own off the top of your head.
But did you know there’s a similar consumer reporting system for your banking habits? It’s called ChexSystems — and just like your credit report, your ChexSystems report could have serious effects on your future financial endeavors.
Here’s what you need to know about this often-overlooked reporting agency and how it could impact your money.
What is ChexSystems?
ChexSystems is a consumer reporting agency that collects banking-related information, such as account inquiries, misuse, fraudulent activity and unpaid fees. In short, it’s a lot like a credit score for your bank account — and just as lenders often pull your credit report before deciding whether or not to offer you a loan or line of credit, some banks will request a ChexSystem report before allowing you to open a checking account.
However, unlike your FICO score (the three-digit credit score consumers tend to be most familiar with), the negative information on your ChexSystem report is generally removed after five years as opposed to seven.
That’s a good thing, because without a bank account it’s difficult, if not impossible, to pay certain bills, especially in the all-digital-everything age of automated electronic payments.
A bank account also keeps your money more secure than it is in your piggy bank, and certain accounts even pay interest. In short, you probably want a checking account — and if your ChexSystems report doesn’t pull up clean, it could be more difficult to open one.
What Shows Up on a ChexSystems Report?
So what kind of activities are reported by ChexSystems?
Well, just as your credit report does, your ChexSystems report will list a variety of personal identifying information, including your name, address(es) and Social Security number.
But the majority of the report will focus on your banking history — particularly any history you’re eager to forget, including:
- Negative balances, such as existing unpaid overdrafts or involuntarily closed accounts
- Unpaid banking fees
- Fraudulent or suspicious activity, including identity theft
- Account inquiries and applications
- Public records, such as bankruptcies or judgments
Just like the major credit bureaus, ChexSystems is governed by the Fair Credit Reporting Act, which means you’re entitled to one free copy of your ChexSystems report every calendar year. You also have a right to a ChexSystems report if a bank uses its information to deny your application for a checking account. You can learn more about pulling your free annual report here, and you can also see a sample report if you’re curious to know what it might look like.
If you find an error on your ChexSystems report, you can (and should) report it immediately. You can do so easily online by filling out the ChexSystems online dispute form, or by mail or fax.
Most ChexSystems investigations are completed within 30 days of filing a dispute.
What to Do If You Have a Negative ChexSystems Report
If your ChexSystems status is keeping you from opening a checking account, the good news is you have options.
Some financial institutions offer “second chance” bank accounts for those with negative histories, though they do sometimes come with additional fees. These are more common with online-only banks, like Chime, but some major nationwide banks offer similar options. For example, Wells Fargo’s Opportunity Checking account is available in 39 states and Washington DC, and offers some attainable ways to avoid its $10 monthly service fee.
You may also be able to use a prepaid debit card to settle bills that are tough to pay in cash, like utilities. Although some prepaid cards come with monthly fees, you can often get them waived with recurring direct deposits.
Whether your ChexSystems report is clean as a whistle or could use some TLC, the first step is to educate yourself. If you’ve never heard of this consumer agency, go ahead and request your free report today. In this case, knowledge really is power — the power to open a checking account that could help you better manage your money.
Jamie Cattanach’s work has been featured at Fodor’s, Yahoo, SELF, The Huffington Post, The Motley Fool and other outlets. Learn more at www.jamiecattanach.com.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.
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* Terms apply. Limited time only, must open the new account and complete qualifying activities to earn 3 individual rewards, up to a max of $350.00, as described at https://www.chime.com/policies/newmemberofferv3.
1 Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
2 Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network.
3 SpotMe® on Credit is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, “SpotMe”). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month.
Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won’t cover non-card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe Terms and Conditions.
4 With a qualifying direct deposit, earn 1.5% cash back on eligible secured Chime Visa® Credit Card purchases. Please refer to the Secured Chime Visa® Credit Card – Cash Rewards Program Addendum for details and more information on rotating cash back categories.
5 On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
6 Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
7 Money added to Chime Card™ will be held in a secured deposit account as collateral for your Chime Card, and you can spend up to this amount. You can use money deposited in your Secured Deposit Account to pay off your charges at the end of every month.
8 You must notify your financial institution immediately of any unauthorized use. For specific restrictions, limitations and other details, please consult your issuer.
9 To be eligible for Chime+™ status, you must receive a qualifying direct deposit to your Chime Checking Account in the preceding 34 days. Certain products marketed as Chime+ benefits have additional eligibility requirements. While some Chime+ benefits may have associated fees, none of these fees are mandatory to access Chime+ benefits or to maintain Chime+ status. See Chime+ Terms and Conditions for details.
10 To be eligible for MyPay, you must receive qualifying direct deposits to your Chime Checking Account in the preceding 36 days as set forth in the MyPay Agreement. A qualifying direct deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Maximum Available Advance may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 – $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or Stride MyPay Agreement for details.
11 Top three national bank ranking according to the Federal Reserve Statistical Release based on domestic assets; number of ATMs self-reported by Chase, Bank of America and Wells Fargo – June 2025.
12 To apply for a Chime Card, you must also open a Chime Checking Account.
13 Chime Visa® Credit Card holders – Deposits and debit refunds go to your Checking Account, then transfer to your Chime Card Secured Deposit Account – other than Chime Card cash deposits at retailers, which go to your Chime Card Account, then transfer to your Secured Deposit Account. Funds are moved from your Secured Deposit Account to your Checking Account to facilitate outbound transfers and debit purchases. Your Available balance is the money you can spend with your Chime Card or Checking Account. See account agreements and statements for details.
14 Chime will report the following activities, as applicable, to TransUnion®, Experian®, and Equifax®: amount past due; payment status of the last paid-off balance; how long you’ve had your card; current statement balance; last balance payment date; and highest balance before paying it off.
