A Chexsystems report can affect your ability to open a savings account especially if there are records of overdrafts or unpaid debt. It is evident the huge role having a savings account plays towards saving for your children’s future. The future your child has depends on how you have planned the growth of your finances. That is why you should work towards your Chexsystems report being positive. Before opening a savings account, most banks check your Chexsystems report to ensure that you did not fall back on any payment or debt.
One way that banks determine if one is qualified for a savings account is retrieving your Chexsystems file. The file contains all information on non-paid overdrafts and bounced checks. It is important to plan your financial future that incorporates your children to ensure they live a comfortable life.
Below are some of the tips to stay away from being reported to Chexsystems:
- Always ensure you don’t overdraw your account to maintain good account records.
- Pay bank fees promptly
- In case there is an inability to pay the bank fees incurred, always make sure you talk to your bank so that you work out a flexible payment plan to avoid any negative report on the system file.
The following few pointers can help you maintain a positive record on your Chexsystems file.
- Sign up for an overdraft protection
It’s normal to overdraw when withdrawing funds because sometimes it is quite a challenge to maintain your records. However, the good news is that banks have a package known as overdraft protection. This type of package is possible where your primary account is linked up with another account in the same bank which is usually a backup plan. In this case, once you overdraw, funds are withdrawn from your other account which prevents you from paying overdrawing fees and having a negative record. The fees paid here are way lower than fees charged on overdrafts.
- Constant contact with your bank
Some of the mistakes people make are not doing any follow ups with their banks. Always ensure that you are in constant communication with your bank. Make inquiries on unclear information. Provide the bank with your primary and secondary contacts so that in the case of anything new they contact you immediately.
- Monitor your account
For accurate record keeping of your account, always track how you spend your money that’s in the account. Have a check register so that any time you write out a check, you can subtract it from your account. By doing this, there will be no instances of bounced checks, which will translate to a positive Chexsystems report. A check register ensures you are aware of how much you have spent from your account.
- Request a Chexsystems Report
You don’t have to wait until you apply for a bank account and your application is declined. Request for your Chexsystems report online and get to see your checking history to see if there are any issues. You can access such a report annually through any Chexsystems website. They offer an annual free copy, and you can get to see where you stand. Sometimes, you may find some information that may not be true, provided that you have the relevant evidence and documents. When this happens, be sure to file a ChexSystems dispute immediately.
- Report Missing Checks
Sometimes, it’s hard to protect yourself from theft, and you may find yourself in a fix when your checkbooks are stolen. At such a point, it is always important to immediately report when it happens. This ensures that the bank is aware that any transactions that happen after the ordeal may be a fraud. By doing this, you prevent an adverse impact on you.
- Scrutinizing your Bank Statements
One very crucial aspect of having a bank account is that you have to be very keen on your bank statements. Review them consistently so that you can note in case of unusual or unauthorized charges. When you notice this, contact your bank immediately for clarification so that they can correct the issue.
- Avoid Post-Dated Checks
Always find a way to avoid postdating your checks because they can always be cashed early. If this happens, you may not have enough money in the account which causes the check to bounce. In return, this affects your Chexsystems report adversely and may lead to the closure of your account by the bank.
As seen above, you have to be determined not to have such incidences of risking the closure of your account. However, it is advisable to have a backup plan in case such an occurrence happens. Some banks offer second chance banking where they don’t check your Chexsystems report to determine if you are qualified to open an account with them.