Why does my bank use ChexSystems?

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Why does my bank use ChexSystems?

Isabelle Barunga Answered question April 2, 2021
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ChexSystems is a kind of verification tool that many banks use as a way to keep tabs on your credit score. Your bank likely uses this to collect information on facts like how much overdraft you have used in the past and whether your bank account was ever forced to close because of non-repayments of debt. Your bank collects this information so that it can hand it over to other banks in the future, should you try to open an account, take out a loan, or apply for other finance like a life insurance mortgage.

If you have good credit, then you don’t have to worry. If you have bad credit, then at least rest assured that the information isn’t kept permanently. However, it is stored for five years so one small mistake can prevent you from opening an account down the line. If you’re trying to find a comprehensive list of banks that don’t use ChexSystems, then click here.

Isabelle Barunga Answered question April 2, 2021
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