With tons of different Bank Deals & Promotions out there, of course, some of them may lure you quite a bit. In which case, it’s important to note just what Bank accounts are safe to open without getting that hefty hard pull lingering your credit score within a given year.
Prominently, most of the time when you open a bank account, the issuer will check your Chex-System report. Essentially, this will contain any unsatisfied balances, check overdrafts, depositing fraudulent checks and/or any suspicious account behavior reported by other banks. Every bank has their own set standards in implementing how much bank bonuses or credit cards you will be able to get your hands on in a period.
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What is ChexSystems?
ChexSystems is a consumer-report agency. It exists to provide financial institutions account verification services when individuals apply for accounts.
ChexSystems is a database that banks use to determine if potential customers might present too much risk to the bank. This primarily aids banks and financial institutions in identifying applicants with a poor history handling their bank accounts, including those who had overdrawn accounts that were closed.
Here are some things you’ll find on your report:
- Identifying information like your name, Social Security number and past addresses
- Unpaid negative balances, including overdrafts or accounts closed involuntarily
- Suspected fraudulent activity
- Account inquiries or applications for other bank accounts
- Unpaid fees
- Public records
How to Receive your ChexSystems Reports
You can request your report from ChexSystems for free every 12 months. If you request it more than once, then you will have to pay $10.50 for extra reports. If you don’t have one, then that’s great! ChexSystems typically report negative activity, so if you’ve been paying off everything, then you’re in good standing.
You can contact their customer service by calling 1-800-428-9623. You can also go through their online application process by visiting ChexSystems Online Application.
How to Dispute ChexSystems Reports
If you’ve ever been wrongly denied for a bank account due to a ChexSystems screening then you have the ability to contest some items on your ChexSystems report. In order to dispute an item, follow the next few steps.
- You will need a copy of your ChexSystems report. Remember, you can receive a free report every 12 months.
- Follow the online process via ChexSystems Dispute Service. You will need to complete the application in full, and they will contact you approximately within 30 days.
If it turns out the information on your report is correct, then you should be sure to pay any of the money owed.
- Pay any outstanding balances.
- Communicate to the bank that you’ve paid the balances and request them to report to ChexSystems about the occurrence.
- Be sure to keep documentation of all activity for proof.
This process will require several days, maybe even weeks, but it is worth it in the end to take off a negative item on your ChexSystems report. This will allow you to be eligible for more bank accounts in the long-run. Keep in mind that some banks may or may not allow you to settle your debts. Be sure to double-check with each bank for more information.
How to Avoid Being Reported to ChexSystems
As mentioned above, ChexSystems documents negative items on your reports. The best way to steer clear and avoid being reported is to keep a clean bank account. By clean, I mean that you should not pay for something that you cannot fund because of your financial status.
Avoiding being reported by ChexSystems is relatively easy. By just understanding your account balance and knowing what you can and can’t pay, you are able to keep a clean record. With that being said, mistakes are possible. As soon as you find a mistake on your report, make sure to contact ChexSystems ASAP.
Inquiry Sensitive Banks/Credit Unions
- Banco Popular:
- Had 5-7 accounts in four months prior. Closed after initially being opened from too many inquiries.
- Bank of Canton:
- Denied with 10 in past 6 months/20 in past 12
- Bank Of The West:
- Declined for 15-20+ accounts in two years
- BBVA:
- Hard pull on your actual credit report, but they are sensitive to many inquiries.
- Blue Federal Credit Union:
- Denied with 8-10+ inquiries in last couple of years
- Blue Hills:
- Denied with 15+ (was approved in branch)
- Denied with 2 accounts in last 12 months
- BMT (Bryn Mawr Trust)
- Approved with 10+ accounts in two months
- Byline Bank:
- More than 2 inquires will result in you being declined
- Cambridge Savings Bank:
- Declined with 15+ in last year
- Declined with 20+ in last six months
- Carver Federal Savings Bank:
- More than 5+ accounts will result in you being declined
- Christian Community Credit Union:
- Declined with 26+ inquiries
- Citibank:
- More than 9-10 new bank account openings in the last 4 months
- Dedham Savings Bank:
- Declined with 20+ in last six months, eventually approved in branch
- Eastern Bank:
- Denied with 5+
- Elements Financial:
- Approved with 15+
- Approved with 5 in the last 15 months
- Elevations:
- Denied for 12 inquiries made in 8 month
- Evansville Teachers Federal Credit Union:
- Declined with 12 inquiries in past 12 months
- Approved with 7 inquiries in the last 3 months
- E*Trade:
- Decline possible if you’ve had more than 10 accounts.
- Home Savings Bank:
- Approved with 24 in past 6 months
- Integrity Bank:
- Approved with 10+
- Justice Federal Credit Union:
- 7-8 checking accounts opened in the last 10 months, denied.
- Keybank:
- 13 accounts opened and denied.
- Declined after 1/2 per month range.
- 13 accounts opened and denied.
- Level One Bank:
- 15 inquires, declined.
- Memory Bank:
- Declined due to Chex
- Newtown Savings Bank:
- Denied with 20+ in last year and 10-12 in last 6 months
- Northpointe:
- Total of 16 inquires in the past 2 years led to being declined.
- 6 ChexSystem inquiries in the least two years, denied.
- Total of 16 inquires in the past 2 years led to being declined.
- People’s United Bank:
- Initially opened led to abrupt closure due to too many inquires. (5-7 accounts in four months before)
- PerkStreet:
- Decline if you’ve had more than 10
- PNC Bank:
- Denied ater 30+ accounts opened in three years
- Popular Bank:
- Monitors account even after opening. Will close if too many new accounts are opened.
- Premier Credit Union:
- Initially denied with 8 inquiries in 3 months. Approved on reconsideration.
- Provident Credit Union:
- Too many applications led to being denied + 5 other inquires.
- Denied after 4-5 accounts.
- Too many applications led to being denied + 5 other inquires.
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- 12+ accounts in the past two years, denied.
- Ridgewood:
- Declined after 7-8 inquiries in the past 12 months
- Sandy Spring:
- Denied
- Sound Credit Union:
- Denied with 10+ in last 12 months
- Thrivent Credit Union:
- Denied with 15+
- UNFCU:
- Denied with 4-5 new accounts
- Union Bank:
- Closed account after opening with two new accounts
- Union Community Bank:
- Denied with 18 in last 6 months
- Union Bank & Trust:
- Not sensitive
- Unity Bank:
- 15 inquires, declined
- Valley National Bank:
- Declined with 4-5 accounts in the past month.
- Approved in-branch with over 15 inquiries total.
- Wesbanco:
- Denied with 15+ in last 12 months
Banks/Credit Unions That Aren’t Inquiry Sensitive
- Alliant:
- Approved with 15 in the last 7 months
- BMO Harris:
- Approved with 6 inquiries in past 3 months
- Approved with 15+
- Chase:
- Opened up to 20+ new accounts on Chex
- Citizens Bank:
- Approved with 15+
- Discover:
- Approved with 15+
- East Boston Savings:
- Approved with 15+
- HSBC:
- Approved with 12 in the last 6 months
- First Tennessee:
- 30+ accounts opened with no issue on Chex in the last three years.
- M&T Bank:
- +30 accounts in the last 12 months
- My Banking Direct:
- Approved with 15+
- Santander:
- Approved with 15+
- Stoneham:
- Approved with 15+
- TD Bank:
- Approved with 15+
- Tech Credit Union:
- Approved 7 in the last 3 months
- TIAA Direct:
- Approved with 15+
- U.S. Bank:
- Approved with 15+
- Webster:
- Approved with 15+
- Wells Fargo:
- Deny if acounts get a negative balance reported on Chex
Conclusion
Among the many banks that offer banking products and credit cards, the truth is, the underlying question we all have is how much credit cards or bank accounts can we visibly obtain through inquiry before it’s a cold-denial. Answer is quite simple.
It varies among bank establishments and honestly Your Miles May Vary. There may be tons of other factors that counts towards you being declined, but it’s expected when you have 20+ accounts on your Chex within the past 2 years. Make sure you also check out our complete list of Credit Card Promotions!
Power Financial Credit Union is also sensitive & I found out yesterday after applying. FYI they have a promo for $500 in Checking pays $100 with no strings attached. No closure fees also.