topic Re: Bank account charge off and credit card application question in Credit Card Applications

Bank account charge off and credit card application question

Anonymous — Wed, 29 Apr 2020 03:31:49 GMT

In November I had a bank (US Bank, I didn't use the account and didn't check it) submit a chexsystems report (and probably EWS) for a bank account negative charge off of $37 (original amount was $7 + $30 fee). Before this I had gotten a credit card with Discover. My 6 months of 0% apr is coming up as ending (I'm fine with it for right now as a card) my question is. If I were to apply to the new Schwab investor credit card (they are my bank, I would like to have a card with my bank) or just any other credit card. Will this chexsystems report flag the application and will application be denied because of this? Am I prevented from opening bank accounts and credit cards for the next 7 years or is it just bank accounts? Thanks.

Re: Bank account charge off and credit card application question

Anonymous — Wed, 29 Apr 2020 03:36:36 GMT

I did pay off the account, but US Bank still reported it.

Re: Bank account charge off and credit card application question

Brian_Earl_Spilner — Wed, 29 Apr 2020 03:39:11 GMT

Depends on how sensitive the bank is. Not sure about Schwab.

Re: Bank account charge off and credit card application question

M_Smart007 — Wed, 29 Apr 2020 03:52:39 GMT

@Anonymous wrote:
In November I had a bank (US Bank, I didn't use the account and didn't check it) submit a chexsystems report (and probably EWS) for a bank account negative charge off of $37 (original amount was $7 + $30 fee). Before this I had gotten a credit card with Discover. My 6 months of 0% apr is coming up as ending (I'm fine with it for right now as a card) my question is. If I were to apply to the new Schwab investor credit card (they are my bank, I would like to have a card with my bank) or just any other credit card. Will this chexsystems report flag the application and will application be denied because of this? Am I prevented from opening bank accounts and credit cards for the next 7 years or is it just bank accounts? Thanks.

Hi @Anonymous and welcome to myFICO forums!

So in a nutshell, Schwab is not a bank but a brokerage house, they do utilize The Bank of New York Mellon for check writing purposes.

The Charles Schwab Investor Card runs on The American Express Network and is underwritten by them.

I do not see any problem with ChexSystems or EWS when applying for this card.

You would have a problem opening a bank or credit union account that uses either one of those companies.

Been with Schwab for 25+ years and I hold The Schwab Investor card, that you speak of.

Summary The Schwab One® Account consists of Brokerage Services and optional checking services, and a Visa® Debit Card issued by BNY Mellon Investment Servicing Trust Company. The Visa® Debit Card terms are set forth in the Charles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure Statement. If you decide to become a Visa® Debit Card holder, you will receive your Charles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure Statement with your new card.

You may use the Visa® Debit Card and checks to pay for goods and services or to withdraw cash from your Schwab One® Account.

Re: Bank account charge off and credit card application question

Anonymous — Wed, 29 Apr 2020 05:24:55 GMT

I want a card with my primary bank - Schwab. And I'm sure I'm not worthy nor do I need the Amex Platinum with them.

My second question, will Schwab close my account for the Chex report? As I said, I paid it the week I found out usbank closed it. Or is Chex a one time thing? Will I have trouble opening any other credit card because of it?

Also I read WF doesn't have a problem with either when it comes to standard accounts? I don't like WF, but WF has a branch where I can turn physical money into digital money almost everywhere.

Thanks for the help!

Re: Bank account charge off and credit card application question

Anonymous — Wed, 29 Apr 2020 18:43:51 GMT

@Anonymous wrote:
I want a card with my primary bank - Schwab. And I'm sure I'm not worthy nor do I need the Amex Platinum with them.

My second question, will Schwab close my account for the Chex report? As I said, I paid it the week I found out usbank closed it. Or is Chex a one time thing? Will I have trouble opening any other credit card because of it?

Also I read WF doesn't have a problem with either when it comes to standard accounts? I don't like WF, but WF has a branch where I can turn physical money into digital money almost everywhere.
Thanks for the help!

If you are not using overdraft facilities, my impression is that institutions generally check Chex only at opening. Basically credit card issuers want to pull credit reports regularly because maybe you have become a bad person and will default. With deposit accounts, the risk seems lower, and is highest at opening.

There are lists on the Web of banks that don't use Chex or are second chance banks (they do look at Chex, but will give accounts anyway(, but I cannot speak to their accuracy. As you say, Wells Fargo is on the list, as is NFCU