And, just like the three major consumer reporting agencies, they produce a score based on the information contained in your ChexSystems file.
How the Score is Determined
A ChexSystems Consumer Score can range from 100 to 899. The higher the score, the lower the risk to a potential bank, credit union, lender or credit card company. The ChexSystems Score is based on the information reported to ChexSystems. Your overall credit and debit history is contained in your ChexSystems file.
The following list is in no way complete but it does contain some of the types of information found in a ChexSystems file:
- Delinquent or derogatory credit behavior
- Delinquent or derogatory credit behavior on installment trades
- Previous debit inquiry history
- Delinquent or derogatory credit behavior on trades opened last 24 months
- Paid and Unpaid insufficient fund items (“NSF”)
- Excessive “NSF” charges, even though you may have covered all of those charges
- Checking account habits that your bank may consider negative
- Any kind of Fraud
- Uncollected overdrafts, ATM transactions or automatic payments the bank paid
- Abuse of Debit Card, Savings Account or ATM Card
- Violation of any banking rules and regulations
- Opening an account with false information
- Excessive ChexSystems Inquiries
What companies use ChexSystems Consumer Scores
Banks, credit unions, other financial institutions and even some credit card companies use a ChexSystems score to help determine whether they should extend a bank account or credit to you. Potential banks, lenders, financial institutions and credit card companies use your ChexSystems report and score to see how you managed past credit obligations; and, if they are able to extend credit to you, the ChexSystems report and score help to determine the credit terms.
Your Rights to the ChexSystems Consumer Score
Because ChexSystems is a consumer reporting agency, it is governed by the federal Fair Credit Reporting Act (FCRA). In addition to promoting accuracy, fairness, and privacy of information in the files of consumer reporting agencies, the FCRA gives you the right to request your credit score.
You can pay for your ChexSystems Consumer Score; or, if you have been denied a bank account or other product based on your ChexSystems score, that company may send you a letter containing your score. Additionally, if you are denied because of adverse information you are entitled to a free copy of your ChexSystems report if requested within 60 days of denial.
A ChexSystems Consumer Score will cost you $10.50 and your request and payment must be submitted by mail.
Can a ChexSystems Score be Improved?
The short answer is yes. But approaching the issue of improving your ChexSystems consumer score should be focused on eliminating banking habits and behavior that may be lowering your score. For instance, if you have frequent overdrafts work on balancing your account to avoid overdrafts or maintain an overdraft protection account.
Banks like the Capital One 360 Checking automatically comes with overdraft protection. The Capital One 360 Checking Account comes with an overdraft line of credit which allows for coverage of items if you overdraw your account. Earn a $50 bonus when you open a Capital One 360 Checking Account. Free ATMs and no overdraft fees.
If you receive a denial letter based on ChexSystems it will include key factors affecting your score. Review the key factors as these are the main elements lowering your score. You have the right to dispute inaccurate, erroneous and outdated information in ChexSystems.
Information in ChexSystems can remain for 5 years. However, any dispute must be investigated by ChexSystems and they have 30 days to respond or the item must be deleted. Read more about “How to Dispute ChexSystems.”