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10 Tips to Avoid ChexSystems

With the knowledge that more than 80% of banks use ChexSystems, concerned customers are looking for ways to ensure that they will not end up in the ChexSystems database. If you want to ensure that you do not end up on this “blacklist” for 5 years consider following these tips.

Tip #1 Pay your Bank

While it might appear simple, if you owe your bank any money – pay them. Good faith effort goes a long way.

Tip #2 No “Kiting”

If you know that you do not have money in your account to cover a check the day you write it, do not write the check. With electronic funds today, the check may clear in minutes instead of days.

Tip #3 No Bouncing

Aside from the fact that bouncing a check is a form of fraud, if you do not know how much money is in your account prior to writing a check, you may want to get your account balanced.

Tip #4 No ATM Overdraws

An overdraw is when you pull more money out than you have in your account currently. Some people mistakenly think that the bank won’t let you overdraw. Wrong. Overdrawn accounts bring in extra fees to the bank.

Tip #5 No Auto Drafts with No Money

Why would you pre-schedule automatic withdrawals from your account, if you know that the money will not be available that day? Sadly, this is a huge problem, especially with mortgage loans.

Tip #6 Never open an account with a Fake Name

Obviously, this is fraud. Fraud is a crime. If you open an account under a fake name, you will more problems than not being able to open a checking account. Be honest.

Tip #7 Never give wrong Information on a Bank Application

While this can happen by accident, it is important to double check everything you write down on a bank account application. When you sign the paperwork, you are stating it is true and accurate. Unfortunately, errors can come back to you with bad effects.

Tip #8 Balance Your Account

If you do not know how to balance your checking account, make an appointment with a bank representative and have them show you. “Estimating” your balance will nearly always end up badly.

Tip #9 If you become aware of an issue, contact your bank

If you realize that you had the wrong balance showing, and you know that you will have a check bounce, let your bank know immediately. You may be able to arrange it so the bank will pay the check and allow you to pay the NSF fee without having the check receiver know there were no funds available.

Tip #10 Always review your Monthly Statement

Believe it or not, banks do make errors. By reconciling your statement every month, you will be aware of any suspicious activity or errors made on the account. Never assume that you don’t need to look at your statement.

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By following these simple tips, you can ensure that you will not end up in ChexSystems database. Not only are these good practices, but they will help you navigate the often confusing bank systems.

About The Author

Ben Todd

Ben was a seriously broke graduate student with bad credit who after finding himself rejected for any sort of credit card or loan for most of his adult life, finally decided to get his financial life in order. 'He spent several years reading as many financial advice books and blogs as he could.And suprisingly, Ben found he actually LIKED the topic of personal finance; after fixing his own finances, starting his own successful work at home website business, and using his earnings to get out of debt, created echeck.org to help others do likewise!

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