Credit Unions Use ChexSystems - Yes They Do
Do credit unions use ChexSystems - chances are that most of them do.
Industry reports say that 80% of all credit unions and banks in the US use the ChexSystems as the first step to
decide on deposit applications. If at any time in your life you wrote a bad check, or had an overdraft - the odds
are high that you have a negative score in the Chexsystems.
The ChexSystems is a check verification service provided by Fidelity National Information Services (FIS) to help
financial institutions form an opinion and make a decision on whether to accept or reject applications to their
financial services and products. The ChexSystems is also a credit bureau or a credit reference agency - it provides
personal credit information collected from a variety of sources. It provides data on how you have handled deposit
accounts at the financial institutions that you have dealt with over the years.
The following are some of the products or services under ChexSystems available to financial institutions as a means
to assess the risks associated with potential and present customers: Do credit unions use
ChexSystems and the services that go with it? In many cases, yes they do.
o DebitBureau. This verifies the credit rating of a person who presents a check as payment. This tracks the
activities of an individual's accounts such as opening and closure histories, check order histories, overdrafts,
o DebitReport. This creates a debit score based on a person's history of deposits, withdrawals, overdrafts or an
account that has been forcibly closed. Most financial institutions use this tool and most will refuse to deal with
persons who has a 'negative entry' in the DebitReport database. This is also used by some as a tool for tenant
screening and payday lending.
o Qualifile. This validates the identity of a new customer and forecasts the probability of an account being
o FraudFinder. This is delivered as an integrated component with QualiFile and provides a powerful tool to protect
financial institutions from identity manipulation and fraud.
o Identity Protection Service. This is a simple, cost-effective and secure way to fight identity theft.
o ID Verification Service. This confirms the identity of individuals and businesses through cross-referencing with
more than 23 billion records from numerous data sources.
Contents of an Individual's ChexSystems Report
Your ChexSystem's report will contain banking irregularities you have been involved with such as check overdrafts,
unsatisfied balances, and suspicious accounts that other banks have reported during the past five years. Do credit
unions use ChexSystem and its reports? Yes, it does and most probably they will not allow you to open a new deposit
account, unless they have specific programs for those with bad credit history.
Fair Credit Reporting Act
With the Fair Credit Reporting Act, individuals are now allowed to have access to their own free ChexSystems report
annually. You can contest the negative items in the report, correct erroneous reporting, and demand proof of the
data contained in the report. You don't have to wait 5 years anymore to be allowed to open a checking account. You
don't have to cash your checks at pawn shops or purchase postal money orders anymore.
Avoid overdrafts and don't be involved with any kind of fraud. Don't let your account be forcibly closed - follow
the rules of your bank for maintaining the account. The financial discipline and responsibility you practice today
is your stepping stone for a promising future. Not only do you know the answer to the question, do credit
unions use ChexSystems but you also know what you can do to change your bad credit history.
Source: Credit Cards For People With Bad Credit Rating
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