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trying2getbackin

Denied for an account due to ChexSystems, yet no negatives items reporting from them

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I just applied online at a bank with a large presence, and I have two credit cards with them which have always been in good standing; one opened in 2014, the other 2 years ago.  Before that I had opened a secured card with them in 2011 and closed it in good standing 3 years later.

 

Application for the checking account was declined due to information from ChexSystems ( I last ordered my report last spring and it was clean with no negative bank entries; and it has been clean for almost the last 3 to 4 years).  Later I received an email from the bank which listed their reasons for the denial based on information from Chex.  The reasons had nothing to do with overdrafts or fraud; but also referred to a score in the 520 range.  Can anyone explain or shed light on these reasons?  What would be the best way to resolve them?

 

  • TIME SINCE NON-DDA INQUIRY ACTIVITY-I opened a local CU account last spring, which I am in the process of closing, before that I opened another CU account last November.
  • CURRENT ADDRESS CHANGE HISTORY-I moved two years ago, before that I was at the previous address for 8 years.
  • NO EVIDENCE OF ASSET OWNERSHIP-I don't own a home, don't drive so no car, but I have brokerage and retirement accounts so I don't get this.
  • NON-DDA INQUIRY OR RETAIL ITEM HISTORY-???  I haven't written a paper check in 7-8 years; I either pay with cash, card, or ACH, and have not had any of these returned.

 

Of course I went to the CS site and ordered a new disclosure.

 

In 2015, after the last of the negatives fell off, I opened checking and savings online with US and have had no issues since.  I also have deposit accounts with Fidelity (opened 10 years ago and survived through a negative report), PenFed opened almost 2 years ago, E-Trade (inactive but opened around the same time as Fidelity and also survived a bad report), and two other CUs opened within the last year (One approved me for a loan in the 5 figures last summer, and the other I am closing).

 

Just Strange......

Edited by trying2getbackin

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Chexsystems offers their scoring system to subscribers.  The scoring goes by different product names, most commonly Qualifile. It computes several things in your file, and gives them a "predictive" score. This score is suppose to indicate to the bank or credit union how you'll handle the bank account, and how much of a risk you are. 520 may be lower than what they'll accept for new accounts.

 

The bank decides which scores they'll accept for new account approvals.

**If your Chex file is clean, many of the declines are often due to recent inquiries for new accounts, or discrepancies in identifying information.

 

What It Computes:

Number of new account inquiries over a certain time period.

Discrepancies in identifying information found in LexisNexis.

FICO Score

Recent negatives with a current or previous bank account.

Recent negatives with check writing or debit card activity.

Other related financial transaction information.

 

Here's a good article explaining the scoring:

https://wallethub.com/edu/chexsystems-score/13318/

 

How To Resolve?

Each bank or credit union is different. You could contact them and try to determine if they offer an account alternative, or reconsideration. Personally I would find another financial institution. With a clean file, you have a lot of options.  Let us know if you would like options for your location. A low Qualifile score is not an end all. Too many other options available.

 

NOTE:  However, keep in mind that multiple new account inquiries can affect approvals.

 

 

 

Edited by tmcgill

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NOTE:  However, keep in mind that multiple new account inquiries can affect approvals.

 

Agree. I was shown the door at a bank because of this, even though everything else was 100% clean. How banks look at accounts at other banks can differ, so be careful in what you open in a given time period.

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I was under the impression that databases like Chex just kept information on those who have had their accounts closed by a bank for cause; excessive overdrafts, possible fraud, or owing the bank as a result of such.

 

If one was listed this database, no new account for 5 to 7 years.  If one isn't listed there then no worries.  Been there and did my time (negative balances), but luckily there were other alternatives then.

 

So Chex is now following *everyone* around and tracking all banking history on them regardless of positive/negative entries??  One can have a clean report with no derogatory deposit account history, yet still be declined for an account for other reasons that are not all that transparent??

 

Perhaps I don't want to open that account after all... 

 

 

 

 

 

 

Edited by trying2getbackin

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When I look at my Chex, it's just inquiry stuff. Not much else, but I haven't checked in a while. I can get another free annual report early next year.

EWS is another story. It's full of banking history on me.

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I received my Chex report last week, no negative information.

 

As far as inquiries, a credit union that I applied to last May ran three inquires, is that excessive?

 

There were also inquires from Clarity; who/what are they?  They did reference loan/credit line account solicitations I received by mail that I responded to online; and stated that checking rates/terms would not affect credit score.  Why would they be looking at my Chex record, let alone be reporting to it???  

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10 hours ago, trying2getbackin said:

I received my Chex report last week, no negative information.

 

As far as inquiries, a credit union that I applied to last May ran three inquires, is that excessive?

 

There were also inquires from Clarity; who/what are they?  They did reference loan/credit line account solicitations I received by mail that I responded to online; and stated that checking rates/terms would not affect credit score.  Why would they be looking at my Chex record, let alone be reporting to it???  

A couple months ago I joined Los Angeles Federal Credit Union. The representative in the office asked about my Chex inquiries. She mentioned they felt having three in the past six months was too many. I think I had two, but she could also see inquiries before that. I was approved. I don't know what my Chex score is, but I've never have overdrawn or otherwise misused a bank account.

It's not written in stone how a financial institution looks at your Chex or EWS. If you have three inquiries at the same time from the same place, maybe you can explain those were duplicates and thus should only count once.

 

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Banks and credit unions with pull your data from other consumer databases such as Clarity or Lexis. They profile you to see what other services they can offer; auto financing, mortage loans, investments, etc.

 

Clarity is part of Experian. The big three credit bureaus have a lot of services they market under different names.

https://www.clarityservices.com/

 

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