A credit union undeniably offers help for its members to achieve financial success through its service. Unlike any other bank, a credit union is owned by its members. These credit unions would then return all the profits to their members in the form of lower fees and much favorable interest rates. Thus, leading to higher saving rates for its members.
You may already know or not that banks and credit unions use ChexSystems to determine and track a potential customer’s banking behavior. Not only that, but ChexSystems also collects negative information about your credit history. This negative information can eventually affect any credit union’s decision if you are allowed to open a new account with them.
ChexSystems reports may include unpaid negative balances, account abuse, bounced checks and overdrafts, and other credit issues. These factors can cause you to be denied when opening a new account. How can I clean up my ChexSystems report? Here are the steps that can help clean your record to open a new credit union account.
Request for a Copy of Your ChexSystems Report
If you were denied creating a new credit union account, you could request a copy of your ChexSystems report. This process can be your first approach to address the concerns regarding your account. You are allowed to get a free copy of your ChexSystem report every twelve months. Commonly, you will receive a response and a copy of your requests in five business days.
It is also essential for you to review the content of the report once you receive it. Make sure that it contains the correct name, address, and accurate social security number. Look thoroughly at your received copy and immediately check the causes of the denial.
This request for the ChexSystems report can help you pay the outstanding balance and acquire solutions to your report’s related problems.
Pay the Balances
If the report you requested contains accurate information, you can then proceed to pay your outstanding balances. Paying your debt in full can help clean your report. Make sure that you already have enough to pay for the balance. If not, you can consider asking the collection agency if you can pay less than your balance or decide which debt to take action on first.
Once you have settled and paid off your balance, you can ask the collection agency to remove the negative record in your ChexSystem report. To make sure, you can opt for the receipt and send it directly to ChexSystem for them to remove and update your records.
Dispute Mistakes or Fraudulent Information
Just like any other credit report, your ChexSystems report can possibly record inaccurate and fraudulent information. This inaccuracy can lead you to have problems when opening a new credit union account. Thus, checking and reviewing your report should be done carefully.
If you find any incorrect information in your report, you have the right to dispute it. Investigations for the ChexSystem to check the possible inaccuracies or fraud in your report can take up to 30 days. Once done, they will send you an email regarding the findings.
Wait for the Items To Fall off Your ChexSystems Report
Letting your items fall off your ChexSystems report can be your last option in cleaning it up. It usually takes five years for ChexSystem to remove the items in your report. However, this process can take a lot of time.
Furthermore, this action can possibly limit your chance to apply for second-chance banking or prepaid debit cards. As mentioned above, to avoid having to wait, you can opt to dispute or pay off your debt for a faster solution.
Open a Credit Union Account That Don’t Use ChexSystems
Fortunately, there are credit unions that do not participate in ChexSystems. These banks or credit unions offer second-chance banking. This type of account can be useful specifically for people with negative ChexSystem reports.
If you want to open a new credit union account but already have past issues with ChexSystem, second-chance banking can be your best option! Crediful provides a list of credit unions that do not use ChexSystems that will probably help you decide.
Takeaway
The issues with your ChexSystems report can indeed affect your plans to open a new credit union account. There can be a lot of options and opportunities available to you with proper communication with the institution. Consumers should take action immediately to avoid any severe problems in the future.
Opening a new credit union account can be helpful as it offers a lot of advantages. It is also essential to consider that one should be knowledgeable enough about the fees, locations, and options of a credit union before deciding to open one. It would help if you also took necessary action when problems occur and be responsible in improving your credit history to avoid similar issues.
