Second Chance Checking | ChexSystems and Your Credit Score
There is a lot of misinformation floating around about ChexSystems, your consumer credit report and your credit score. One of the biggest misconceptions about ChexSystems is that being listed in their database will cause your consumer credit score to drop. Here is the real deal about ChexSystems and your consumer credit score with bureaus like Trans Union, Equifax and Experian.
Currently, your being listed in the ChexSystems database does not affect your consumer credit score. In fact it is entirely possible that you could be listed in the ChexSystems database and have a solid credit score. Now this may change in the future, but currently the two systems are not related.
Now this does not mean that writing a bad check (which could cause you to be listed in ChexSystems) can not negatively affect your credit report and credit score. This could happen due to the bank/credit union or merchant passing the bad check debt to a collection agency. At this point, it would more than likely be reported to the credit bureaus and at that time your consumer credit score will take a hit. This could happen due to the bank, credit union or merchants (receiver of the bad check) business policies of immediately reporting and turning over debts to a collection agency or if you do not clear up the bad check in a reasonable amount of time.
So how do you keep your ChexSystems from affecting your credit score. If you pass a bad check, make sure that you clear the matter immediately. This includes paying all associated costs and making sure that all parties affected are made whole. Do not let is slide, procrastinating and putting things could cause the infraction to be reported to the bureaus and then your credit score will definitely take a hit.
