Author Topic: Do lenders look at Chexsystems for credit card and other loan applications?  (Read 419 times)

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crandall10

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I have overdraft balances from checking accounts owed to a bank and a credit union from 3 years ago that appear on my Chexsystems report.

I can't find my report but I believe the balances from the 2 accounts total around $850.00.    I know the entries will drop off Chexsystems

after 5 years, but I am trying to rebuild my credit by getting a couple of loans (installment and revolving) to add a mixture to my credit profile. 

Neither of these accounts show up on any of my credit reports but I wonder if these overdrafts would be revealed when I try for a loan with

lenders who utilize Chexsystems? 

Flyingifr

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Chexsystems is used by banks when you open a deposit account, not by lenders in the traditional sense, but nothing prevents the banks that report to Chexsystems from reporting to TU, EFX and EQS also.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Bruno the JDB Killer

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You should be more concerned that the bank and CU will probably sue you.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

crandall10

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Chexsystems is used by banks when you open a deposit account, not by lenders in the traditional sense, but nothing prevents the banks that report to Chexsystems from reporting to TU, EFX and EQS also.

But would the lenders in their due diligence use Chexsystems as that extra resource to check on credit issues with the applicant?

Flyingifr

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But would the lenders in their due diligence use Chexsystems as that extra resource to check on credit issues with the applicant?

Not likely because the reason for pulling a Chexsystems report is typically directly related to they type of account that is reported to Chexsystems - deposit accounts closed by the bank for various reasons and not defaulted loans or credit cards. It would be like lookin at your water bill to see how much electricity you used last month.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

BrokeBob

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Different places use different credit reports for different reasons.

I used to know a guy, a very good programmer from London, who had once worked at a record club in the UK.  For the young crowd, those were places where you would get a certain number of albums from their list, the first few at a very deep discount, and the you were expected to buy a certain number during the year at their regular price, which was still below retail. 

Anyway, it turns out that in the UK at least, there was no correlation between one's credit rating and one's propensity for meeting the club obligations.  There were starving artists who couldn't balance a checkbook or pay their bills on time who would never stiff a record club, and businessmen with stellar credit ratings who wouldn't think twice about stiffing the record club. 

The Chexsystems looks at how you have treated the bank, did you bounce the check, etc.  Apparently how people treat their checking accounts is not exactly the same as how they treat their credit cards.  Some people will bounce checks from time to time but never miss a car or mortgage payment.  Others will have no credit at all, but be meticulous in their checking. 

When I first moved to Wisconsin, and had to open up an account, I found out there was a Hispanic female illegal alien in Chicago who had used my SS# to bounce quite a few checks.  That never prevented me from getting any credit, but whenever I opened up a bank account, I had to show I wasn't the same person. 

CleaningUp

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A point that an OP needs to be aware of:

Credit Unions because of their nature and size tend to be a lot less forgiving that banks when it comes to collecting.  Credit unions sue.

Bruno the JDB Killer

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And they have excellent records and usually  no arbitration.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

crandall10

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A point that an OP needs to be aware of:

Credit Unions because of their nature and size tend to be a lot less forgiving that banks when it comes to collecting.  Credit unions sue.

Are checking accounts written contracts or open ended type of agreements as far as SOL is concerned? 

CleaningUp

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Written...

And what's more, your signature is required to open the account.