5 Steps to Clear Up Your ChexSystems Record

Get your report, dispute errors, pay off debts, ask creditors to remove information and wait for it to drop off.

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If you’re having a hard time opening a bank account because of ChexSystems, follow these five steps to remove your record.

» Need more context? Learn the basics about ChexSystems

» Skip ahead to see our list of the best banks to avoid and limit overdraft fees.

1. Request your report

Get your ChexSystems report to determine why a bank didn’t approve your application. The report shows a breakdown of specific accounts closed, outstanding debts, bounced checks and more. You’re eligible for a free copy of your report once every 12 months.

Request your record in one of these ways:

  • Call ChexSystems at 800-428-9623. (This is an automated voice messaging system.)

  • Visit the website, go to the Request Reports section and fill out the consumer disclosure form. Submit it online or print it out and mail it to Chex Systems Inc., Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN, 55125.

2. Dispute errors

If you find information that you believe is wrong, gather supporting documents, such as payment records or bank statements. Then go to the Dispute Information section of the ChexSystems website and choose how you’ll submit your dispute:

  • Online: At the link above, click on that webpage where it says "submit your dispute now." You'll be taken to a form to fill out and an area where you can upload files that support your claim. Once you're ready, hit "submit" at the bottom of that page.

  • Via mail or fax: Starting at the same link above, click at the phrase "read more about other methods of submitting a dispute." From there, you’ll see a link for the “Request for Investigation” form to print out. Then fill in the necessary information and include copies of any supporting documents — not originals. Send these files to the address listed above, or fax them to 602-659-2197.

  • By phone: If you've already received a copy of your ChexSystems report, you can speak to a representative at 800-513-7125. This is helpful if you don't have any supporting documents. You can’t make disputes involving fraud or identity theft by phone.

The next part is up to you. You can let ChexSystems contact the bank or credit union that reported false information on your behalf or mail a dispute to the financial institution yourself. If you choose to do it yourself, use this sample letter to get started.

ChexSystems and your financial institution must research the dispute within 30 days. If they confirm that information is wrong or incomplete, they’re bound by federal law to correct it. If you're not satisfied, you can add a brief statement to your report explaining the problem.

3. Pay off debts

If your report is accurate and you owe money, pay it. If your budget is tight, ask your creditors if they'd be willing to settle for less than the debt amount.

“I was able to negotiate a payoff with one collection agency for a little less than the total amount owed,” says Steven Hughes, an entrepreneur in Columbia, South Carolina. He had racked up nonsufficient-funds fees in his checking account, which ended up getting closed.

» More from NerdWallet: How to pay off debt fast: 7 tips

Get out of debt faster

We'll help you stay on top of upcoming payments and find a strategy to ditch your debt.

4. Ask creditors to remove information

Once you’ve paid your debts, ask the collection agency or other creditor to update your file on ChexSystems. Get payoff information in writing and keep track of receipts or other documents that show you’ve paid the debt.

In Hughes' case, once he paid the agreed-upon amount, he received a receipt for payment and sent it to ChexSystems. “The next report I pulled showed that the debt had been cleared,” he says.

5. Wait until the record drops off the database

If all else fails, wait until blemishes fall off your record. Reported information usually is removed from your ChexSystems file after five years.

Until then, you might be able to open a second-chance checking account. These accounts are designed for people with bad credit or banking histories. Although they generally have monthly fees you can’t avoid, they can help rebuild your financial history and make you eligible for a standard bank account, usually within a year.

» Interested in rebuilding your banking life? Find a bank for you among our list of second-chance checking accounts

Best 6 banks to avoid and limit overdraft fees

Once you've removed your record from ChexSystems, help yourself avoid future trouble by opening an account that has a good overdraft policy. Here is NerdWallet's list of the best banks to avoid or reduce overdraft charges.

BEST BANKS TO AVOID OVERDRAFT FEES

SIMPLE

  • No overdraft program or fees

  • No monthly account fees

  • Mobile budgeting tools

Simple Simple Checking & Budgeting
NerdWallet rating 

at Simple, Deposits are FDIC Insured

CHIME

  • No overdraft program or fees

  • No monthly account fees

  • Two automatic savings programs

Chime Chime Spending Account
NerdWallet rating 

at Chime, Deposits are FDIC Insured

DISCOVER BANK

  • No overdraft fee

  • Offers free overdraft protection via linked account

Discover Bank Discover Bank Cashback Debit
NerdWallet rating 
Read review

BEST BANKS TO LIMIT OVERDRAFT FEES

CAPITAL ONE 360

  • Free transfers from linked savings accounts

  • Offers overdraft line of credit

Capital One Capital One 360 Checking®
NerdWallet rating 
Read review

TIAA BANK/EVERBANK

  • Free transfers from linked accounts

  • Offers overdraft line of credit

TIAA Bank Yield Pledge® Checking
NerdWallet rating 
Read review

CHARLES SCHWAB

  • Free automatic transfers from savings and brokerage accounts

Schwab Bank Schwab Bank High Yield Investor Checking®
NerdWallet rating 
Read review

» Want to compare more banks? Read about what other banks charge for overdraft fees

If you’d rather not deal with a bank account right now, you could choose from our list of the best prepaid debit cards. These spending cards have some banking features such as direct deposits and multiple loading methods including cash loads and check deposits.

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