Most banks don’t just check your credit score when you open a checking account. They check banking history reports from ChexSystems and Early Warning Services (EWS). If a past account was closed with a negative balance or flagged for suspected fraud, you can be denied even with good credit.
What these reports show
- Accounts closed with an unpaid negative balance
- Suspected fraud or account misuse
- Bounced checks and repeated overdrafts
- Recent applications for bank accounts
How long it stays
ChexSystems generally keeps records for up to 5 years. Paying what you owe doesn’t automatically erase the record, but it should be updated to show it was paid.
Your rights
ChexSystems and Early Warning Services are consumer reporting agencies, so the Fair Credit Reporting Act applies. You can request your report for free once a year and dispute anything inaccurate, incomplete or unverifiable.
What to do
- Request your ChexSystems and EWS reports
- Dispute anything that’s wrong
- Settle real balances and get proof in writing
- Ask about second-chance checking accounts while your record is being fixed
Banking history restoration is one of our core services. If a bank has turned you down, we can help you find out why.
Want help with your file? Book a free strategy call, or learn the process yourself with The Approval Room (free for 7 days).
This article is for education only and is not legal or financial advice. Results vary.