ChexSystems & Bad Credit Resources
CreditServicer.com is a leading resource site designed to help consumers overcome their problems with ChexSystems and bad credit. We offer a variety of financial services including bad credit loans, credit cards, second chance banking, and debt relief. In addition, we provide free advice and resources which can help you improve your current financial situation.
What is Chexsystems?
Chexsystems is a network of financial Institutes that share information about mishandled checking accounts holders to one database, those financial institutes then use this information the evaluate risks dealing with a specific person. Many banks use Chexsystems in order to determine whether to allow or decline opening a checking/saving account to an individual. People who have bad credit often unable to open a checking account due to their Chexsystems report.
Which ChexSystems solution is right for me?
There are several ways to overcome ChexSystems. The option you choose should be based on your personal situation and banking history. Many people have found their solution by opening a checking account through a bank that doesn't use ChexSystems, also known as Non-ChexSystems Banks. While many others have found relief by applying for a second chance checking account or a prepaid debit card. Browse through each option and see which one works best for you.
If I have bad credit, can I qualify for a new credit card?
Absolutely. There are credit cards designed especially for individuals with past credit problems. Check out our credit card page to find the most current list of "bad credit" credit cards. We provide applications to various types of credit cards, including unsecured, secured and prepaid debit cards.
Can I qualify for a personal loan even if I have bad credit?
The credit crunch has made it more difficult for people to qualify for a loan. Lenders are more stringent with their lending guidelines nowadays, but there is hope. We've teamed up with HFC and Citifinancial to bring you their personal loan services. They are currently accepting applications for all credit types.
I have bad credit and my debts are piling up, can you help me?
Yes, our debt relief partner can help you payoff your debts faster, lower your interest rates, eliminate fees and late charges. Through debt consolidation, you can simplify your financial situation by making a single payment to the debt counselor. Don't ruin your credit any further and stop those harassing phone calls from your creditors. Get started by filling out this short debt relief form.
Should I repair my own credit, or hire a credit repair company to do it for me?
We always recommend that you repair your own credit whenever possible. There have been thousands of reported cases where fly-by-night credit repair companies have scammed people out of money and even ruined their credit. Visit our credit repair section for information on credit and learn about ways to improve it on your own.
Curious about what's on your credit report?
There are ways to obtain your credit report without paying a dime. Here are three easy ways to get your credit report with no strings attached: Free Credit Reports
New helpful ChexSystems help and financial advices
Getting a free credit report
- The first step to repairing your credit report after being on the chexsystem list, is to obtain a copy of your credit report so you can fully understand what is written about you.
- The consumer reporting companies- Equifax, Experian and Trans Union are required to provide you with a free copy of your credit report, upon request. The easiest way to request a copy of your credit report is via each company's website. Ensure that you have entered the correct website, as many sites are designed to look similar and provide services you may not need. To order your report by phone – fill the Annual Credit Report Request services, P.O. Box 105281, Atlanta, GA 30348-5281.
- There is no need to call the consumer reporting companies, as they will send you the information you require once they have received your free credit report request.
More helpful financial advices
New helpful ChexSystems help forum posts
- Do I need a lawyer to dispute with the bank about being in the chexsystems?
If you have a simple account and you have minor debt problems, the bank may attempt to help you and offer solutions as its main objective is to recover its own money. if you have had previous problems with the authorities or if you are running a business and your personal and company debts are mixed, it is advisable to obtain the assistance of a lawyer.
- Is there a short way to overcome chexsystems – bad credit?
I have heard of the corporation way, will it help me?
- Using the corporation system means that you are involving other peoples and using their names instead of your own name and security number to avoid the chexsystem barrier. This method is not sufficiant to get around the chexsystem as creditors will ask for more then just names. They will need the security number of at least one individual. It can be difficult to find a person willing to risk his personal credit rating by associating with someone who is on the chexsystem list. If you really need a solution now it can be worthwhile applying for one of the many credit cards that are available. It will also be a good start to improving your credit score. You may have an account as a corporation but if there will be any problems [with any member of the group] you have done more damage to your credit report and even to theirs.
- How do I switch credit cards and not affect my credit score?
- Opening and closing credit cards is your choice and has nothing to do with your score as long as you close your accounts properly and leave no debts in them. Why not ask your creditors about the possibilities. Many times they will be glad to answer and help themselves recover their debts.
- I would like to know what my credit report contains?
- A credit report is a record of individual's loan payments or debts. The credit report specifies whether the individual had late payments or bankruptcies or any other irregularities in his financial situation. When opening an account, asking for a loan or even when submitting a request for a credit card, the financial institutes check the credit report as a risk assessment and then decide whether to approve or disapprove the lender request.
A well-known institute that holds information about bank account handling is Chexsystems
- Once you are reported to Chexsystems you must act quickly, At this time gather your strength and start fighting for your reputation.
You will have to know what is written in the Chexsystems report and who was responsible for what it includes. For that you must get a copy of this file.
- Ask for a file from the consumer-reporting agency, which is governed by the Federal
Fair Credit Reporting Act (FCRA). Every year you are entitled to request one free copy. Read your copy and search for incorrect information that can appear for many reasons, check every small detail as they are crucial. Remember it could be a mistake you can resolve with the banks help.
If you were reported because of a fraud or identity theft you will have to prove your innocence with the bank. One possibility is to search for an agency that will do the work for you and try to take you out of the Chexsystems report. Using this type of service is expensive, and, you will have to supply information and papers about your condition. You will have to prepare similar information if you did it yourself and so often it is just an unnecessary expense.
- If you can pay off your debts, try to close your file with the banks help.
Insist to have written confirmation that the debt was paid fully and cleared. You can add a note to your report making your side clear.
- This report will stay for five years unless there is a request from a federal institute to close it. This procedure may take time. Meanwhile, try opening an account that will enable you to handle your money responsibly and show your sincerity with money handling which in return will improve your score and boost your reputation.
- If you have reached the point in which you cannot help yourself eliminate your debt and your only option left is filing for Chapter 7 bankruptcy, you must know what you are going to face. Going into bankruptcy involves lawyers and judges which in turn use rules given by the local states or by federal laws. The value of your property will be taken into consideration when the list of what will be taken from you will be made. The list will have exemptions depending on the state or the federal law which will allow you to keep some of your property. In states where you will have the chance to choose between the state or federal law carefully asses whichever gives you the most assets as an outcome and which affects your credit score the most favorably.
- The law will appoint a bankruptcy trustee who will have authorization to sell your property in order to pay your creditors taking care not to sell what was agreed as exemptions.
- Any valuable property may be taken like cash furniture insurance bonds and so on.
If you know ahead that you are facing financial difficulties, you may be better off selling your valuable assets while you can get a good price for them and paying off your debts. Alternatively try to keep the amount of assets in your name to a minimum to avoid all your assets being sold off. Anyhow you will have to use an attorney for the next steps.
- Following your account activity is a difficult task. The need to check your bank account every statement and update your budget is a time consuming task. On the other hand, balancing the account is a crucial task, we must ensure that the amount spent is not more than you can afford.
- Be aware that when you check your account, some items may not have cleared through the banking system and so may not show up on your statement. These items often take a few days to come through.
- The optimal situation is to plan expenses and keep accounts balanced. Check the balance in your account and plan ahead for the big expenses (as far as you can). The sum total of the small every day expenses are difficult to budget for but do add up. In addition remember to budget for bank charges as fees are often made for every transaction in the account.
You cannot plan exactly how much you will spend for food, electricity, water, fuel, schools and so on. When planning our budget all we can do is to take into account the average expenses of each one of them. The differences between the average amounts and the real expenses are left as an uncalculated variable.
Unexpected expenses like presents, house damage and many other things you didn't think about are absent from the budget plan.
All this extra money in addition to the banks fees may change your balance to negative.
Depends on your incomes, leaving a substantial amount for unexpected expenses is necessary to avoid negative balances, otherwise you may be starting a nightmare.
Keeping our account balanced is a difficult but necessary task, planning ahead and foreseeing upcoming expenses and changes to the existing budget are crucial. Don’t forget, we should always leave a substantial amount for unexpected expenses.