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Why do Ally and Discover keep pulling my ChexSystems?

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Valued Member

Why do Ally and Discover keep pulling my ChexSystems?

So I'm a bank account churner who regularly pursues checking and savings sign-up bonuses. Therefore I'm aware of the numerous inquiries on my ChexSystems report, and noticed something odd on my latest annual report -- that several banks with which I already have an ongoing banking relationship have kept pulling my report, even as I maintain my accounts with them:

 

Ally Bank - initial pull 10/15/2018 when I opened my account, then again on 5/6/2019.

 

Discover Bank - no initial pull for any of the three deposit accounts I opened with them in 2017; then a Chex pull on 10/12/2018; an Experian pull when I opened a credit card on 2/16/2019 (no surprise there); then another Chex pull on 5/6/2019.

 

What's the deal here?

 

First of all, it kind of sucks because this is the equivalent of a hard inquiry that I didn't authorize, which damages my ability to get new bank accounts.

 

Second, it's curious because both of these banks pulled on the same timeline (within a few days of each other in Oct. 2018, then together on the same day in May 2019). Neither date of the Chex pulls correlates to anything significant in my banking history, e.g. applying for new products with that bank, obtaining a new credit card (with them or elsewhere), or the addition of any adverse information in my Chex report (which is clean except for inquiries).

 

Finally, what are they looking for when I already have an open account with them?

Message 1 of 4
3 REPLIES 3
Established Contributor

Re: Why do Ally and Discover keep pulling my ChexSystems?

Hello fellow bank account churner. I don't have Ally but I do have Discover and yes, it is annoying. Whats doubly annoying is that Discover uses EWS which gives them access to every single ACH and all my balances at other EWS institutions. So there is no reason to continuously pull my Chex.

Solution? Freeze your Chex. Get a PIN so you can unfreeze it when you need to open an account

 

https://www.chexsystems.com/web/chexsystems/consumerdebit/page/securityfreeze/information

https://www.chexsystems.com

BECU | Apple | Discover | Key
Message 2 of 4
Valued Member

Re: Why do Ally and Discover keep pulling my ChexSystems?


@Morpho wrote:

Solution? Freeze your Chex. Get a PIN so you can unfreeze it when you need to open an account


Good idea. What's your experience with applying with a freeze in place? Would it be an auto-reject like with a credit card, or do some banks let it slide and just go without?

Message 3 of 4
Established Contributor

Re: Why do Ally and Discover keep pulling my ChexSystems?

I don't normally apply with a freeze in place. That is an instant denial for banks that only use Chex. I keep the freeze in place when I'm not applying to prevent people hitting my Chex randomly who are not supposed to; Like Discover. When I am applying I check to see if a bank is a EWS bank. If they are then I know that is their primary method. So for those banks I leave Chex frozen. They might hit Chex, just cause...reasons. But they will not deny you if frozen because EWS gives them much much more detailed information about your banking activity and that is their primary method of approval.

 

An example of banks hitting Chex randomly for no reason is Apple/GS and Capital One. I don't have bank accounts with either yet Cap1 is listed as requesting my Chex via TU and Apple/GS tried to. Both when I applies for a credit card.

https://www.doctorofcredit.com/banks-credit-unions-dodont-pull-chexsystems/

https://www.doctorofcredit.com/banks-credit-unions-chexsystems-inquiry-sensitive/

 

BECU | Apple | Discover | Key
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