Chex Systems

[financialfreedom777]

Ok, so I've sifted through the forums on here about the Chex Systems so try to understand why it is on my reports, who checks it, its value and weight in credit decisions but geezzzz, its just all so complicated. Why? I'll admit its super uninteresting information and I am still on the learning curve of credit but ay yay yay!

[Anonymous]

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@financialfreedom777 wrote:

Ok, so I've sifted through the forums on here about the Chex Systems so try to understand why it is on my reports, who checks it, its value and weight in credit decisions but geezzzz, its just all so complicated. Why? I'll admit its super uninteresting information and I am still on the learning curve of credit but ay yay yay!

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it is more for banking info. Bounced checks, overdrafts, closed bank accounts on bad terms, large tramsactions, etc. Depends on which FI is using it and how much info they provide. Negative info remains for 5 years. I had a CU checking account closed with a negative balance in 2015 that just dropped off this year and hindered me from getting other bank accounts for several years.

It also keeps track of how many bank accounts you have. So if you do banking sign up bonuses, this can hinder you if you have opened too many accounts in a certain period of time.

[OmarGB9]

As mentioned above, it's not for credit, it's usually to open up bank accounts or gain membership to a CU.

Also, it's not part of your standard credit reports through Experian, Equifax, and TransUnion. It's its own "bureau" if you will.