What is ChexSystems and Why Do Banks Use It?

The banks may compete with each others for customers, but they’re more than willing to cooperate with one another when it serves their interests.  ChexSystems is a perfect example.

The banks want your money, but they don’t want you to open account if you’re likely to close the account with a negative balance or otherwise abuse your banking privileges.

ChexSystems is a service utilized by banks to determine the level of risk they may be facing if they allow someone to open an account.  When people do owe the banks money, have a history of NSF problems, have been involved in fraud or have otherwise engaged in behavior that raises red flags, member banks report the situation.  That makes your banking history available to other banks, who will look at the data when deciding whether or not to provide you with an account.

Being on the Wrong Side of ChexSystems

If you’re ChexSystems report contains the “wrong” kind of information, banks won’t allow you to open an account.  That information stays on your record for five years, so you can end up in “bank limbo” for a  long time if your report isn’t clean.  Trying to live a normal life without a bank is tough, so you don’t want to end up on the wrong side of ChexSystems.

It’s not just a matter of not being able to open a new account.  In some cases, a negative ChexSystems report from one bank can result in another freezing or closing your active account.  It’s also worth noting that some banks will allow you to open an account prior to running the report.  If they later find out that you have a bad report, they can shut down the account.

What Does ChexSystems Think about You?

You might be wondering exactly what’s on your personal report.  After all, it makes sense of have an idea of whether a bank may turn you down for an account.  You may also want the information to clean up messes you have left behind.

You’re entitled by law to a free copy of your report once every twelve months.  Additionally, if you’ve been turned down for an account, you can order a free copy of your report from ChexSystems within sixty days of the decision.  The request process is simple and surprisingly convenient.

Dealing with a Negative ChexSystems Report

If you’re having problems related to a negative ChexSystems report, there are a few things you can do.

First, if the information on the report isn’t correct, you can dispute it.  That may lead to a fixed report and a regained ability to secure a bank or credit union account.

Second, you can take action to resolve the negative items on your report.  If you owe money on an old account, for instance, you can go back to that bank and make good on the amount owed.  This will (or sould) result in the negative information’s removal from your report.  That’s why it’s a good idea to get a copy of your report if you’ve been denied an account–going back and cleaning up your past mistakes is usually the best way to fix things.

Third, you can try to search out a bank that doesn’t rely on ChexSystems when making its account decisions.  Based on the number of websites claiming to have lists of banks that don’t use the service, you’d think that finding one would be easy.  It isn’t.  Most banks and credit unions do use the service.  Those who don’t usually use alternative systems that may have the very same information.

Fourth, some banks offer “second chance” or “fresh start” accounts to those who have poor reports.  They’ll allow you to open accounts with stricter-than-usual requirements.  Most don’t immediately provide check writing privileges, but in many cases, you can “earn” your way into a standard account if you demonstrate the ability to bank responsibly.

If you’re considering a credit card, you’ve probably come across the Household credit card offer.  This refers to the credit card product offered by Household Bank, a nationwide financial institution.

Why Consider a Household Credit Card?

The household credit card is attractive for a variety of reasons, including:

1. Ease of Acceptance: The Household bank is known for taking some risks on those with less than stellar credit.  Of course, cardholders do pay for that privilege:  the variable interest rates on the household credit card can be as high as 29.49%.
2. Quick Response: Believe it or not, it is possible to get an initial response on your application in just a couple minutes at the Household site.  And your first inquiry will not impact your credit rating in any way.
3. Personalized Approach: Many people seek out the Household credit card because the issuer will customize the terms of the card to better suit your credit and spending situation.  So, for example, if you have OK credit you may be able to get a card with a lower interest rate.  Or you may be able to get a card with a lower annual fee and slightly higher interest rate.
4. Introductory Rates: The household credit card also offers a 0% introductory APR for six months.  Note that savvy consumers will be careful with these types of offers, being sure to pay back the amount owed under the introductory agreement before the interest rate jumps to a higher amount.
5. Cash Back: Another great feature of the Household credit card is that it offers cash back on purchases.  Again, this offer is useful only for those who utilize it wisely.  For example, the 2% cash back is not very useful if you consistently carry a balance.  You’ll find yourself paying significantly more in interest and fees than you’ll ever get in cash back.
6. Security with a National Bank: Finally, one of the key attractions of the household credit card is its relationship with internationally known HSBC bank.  If you’re looking for a card with some stability it’s always best to go through an organization that has a long-standing positive reputation.

How do I Apply for a Household Credit Card?

The best way to get started is by going directly to the Household bank site at www.householdbank.com.  Here you’ll fill out a brief application to get an initial response online.  While the bank will need to get more information from you in order to actually issue a card, it can be reassuring to get that first “yes” — or at least helpful to know that the first reaction is “no.”

What Else Can I Do on the Household Bank Site?

Should you be fortunate enough to get a household credit card, you’ll be able to manage all your interactions with the bank through their online interface, including:

• Bill payments
• Requests for credit increases
• Checking on the status of your application
• Integration with other HSBC accounts

In short, if you’re looking for a credit card provider specializing in less-than-fabulous credit, the Household credit card may be the way to go.

If you’re a student, you’ve probably run in to the famous credit catch-22.  In order to get a credit card, you have to have a credit history.  And in order to build a credit history you have to have a credit card.  How do you solve this dilemma?  The answer may be in special credit cards for students.

Where can I find credit cards for students?

In many cases, offers for special credit cards for students will come to you — from your college bookstore, from your part-time job or even in the mail.  Credit card issuers see great potential in the student market.  They welcome the idea of building a relationship with consumers and students tend to be a good long term risk in the credit market.

Another option for finding viable options is a site like Card Offers.com.  Here you can review options and specials from a variety of vendors, specifically for the student market.

What can I expect?

Credit cards for students generally operate similarly to regular credit cards.  However, you may find that you will have a slightly higher long-term interest rate as well as a significantly lower credit limit.  This is because many students have both a limited credit history as well as limited income.  High interest rates and lower limits help the bank issuing the card reduce their risk.

How can I improve my chances of getting a student card?

While the banks that issue credit cards for students do understand the unique student market, they are still looking for customers that will make payments on time and not default.  How can you demonstrate that you’re a good risk?  Here are some ideas:

- Consider starting out with a prepaid or secured credit card:  These products require you to set aside a certain amount of money with the bank issuing the card.  Your credit limit will be no more than the amount you’ve set aside.  This approach gives you access to the convenience of credit while ensuring that the bank will not be left holding the bag if you default.  It’s also a great way to build a positive credit history, but only if you make payments on time.

- Look into a revolving line of credit:  If you are considering buying anything from a school ring to a car, ask if you can make the purchase through a revolving credit line.  If a credit line is available, make sure that the organization reports your timely payments to one of the three main credit bureaus.  This information will be utilized to build your credit score.

- Consider credit cards from local stores:  Many chain department stores offer store credit cards with small limits and high interest rates.  While those terms don’t sound too exciting at first, if used correctly they can be a great way to start developing a positive credit history.

What can I do to utilize credit cards for students wisely?

If you’re just getting started in the credit world, you can easily get carried away.  Whatever you do, don’t let a few years of unwise spending during or right after school ruin your credit history for years to come.  When you get that first credit card, think of it as a very short-term (i.e., monthly) loan.  Essentially, credit cards for students should not be seen as a license to purchase anything you want up to the credit limit.  Instead, think of plastic as a convenient way to carry around you existing cash.  Never spend more than you can pay at the end of the month.

There’s nothing more frustrating than trying to get needed credit if you don’t already have a good credit score.  And yet the irony is that if you had a good credit score, you probably wouldn’t need to seek additional credit — banks and lenders will beat a path to your door.

Well, if you’re in this situation, have no fear!  There is a credit card for bad credit out there:  in fact, there’s more than one!  But before you start exploring, you should ask yourself a couple questions.

What Should I Ask Myself Before Seeking a Credit Card for Bad Credit?

Don’t just go leaping from the bad credit frying pan in to the new credit card fire.  Ask yourself a few questions first, including:

- Do I really need a credit card?  If at all possible, you should look for ways to solve any current financing problems without a new credit card, especially if you’re still in-debt.

- Have I solved any past credit problems?  If the reason you are seeking a credit card. for bad credit in the first place is because you’ve consistently been late on payments, bought more than you could afford, or mismanaged your money, it’s important that you identify ways to stabilize your financial situation before finding a new line of credit.

- How will I use this credit card?  Getting a new credit card when your credit is less-than-fabulous can make sense if you’ve solved any management issues and are willing to use the card to help re-establish yourself as a good financial risk.  On the other hand, if you’re seeking a card because you’re having financial difficulties and can’t meet your payments, you should seriously consider cutting back on expenses before looking into loans.

Where Can I Start?

One great place to start is Card Offers.com.  Here you’ll find the latest options for those that do not have good credit.  Some of those options include:

- Traditional Credit Cards:  Believe it or not, it is possible to get a traditional credit card for bad credit.  In other words, you can find vendors who will offer you a line-of credit (granted, your limit probably won’t be too high).  All you need to do is make your payments on time to demonstrate your credit worthiness.

- Pre-Paid Debit Cards:  One of the best credit cards for bad credit is a pre-paid debit card.  You may not think of these as credit cards because, in essence, any amount that you “charge” on the card will be deducted automatically from your checking account.  That said, it’s a great way to re-establish yourself as a good risk.

- Secured Credit Cards:  A final great credit card for bad credit is a secured credit card.  Under this approach, you’ll set aside a certain amount as “security” for the amount that you charge on the card.  Your limit will usually be no more than the amount you’ve set aside for security.  In this way, the bank can be assured that it will at least get the principle that you’ll owe back.

With a little effort and a lot of careful review, it is very possible to find a credit card for bad credit — all you have to do is ask yourself some key questions and assess your current financial situation.  Then, take a look at the available options!

Having you been searching on the term “free copy of credit report” and been confused by the reponses?  For example, you may have come across www.freecreditreport.com, which requires you to sign up for a trial version of an expensive monitoring service in order to get your free report.  How can something that requires you to sign up for a trial membership in a credit monitoring service be free?

Well, have no fear.  It is possible to find a “free copy of credit report” without having to pay an arm and leg – or anything at all.

Why is my credit report important?

Chances are you’re searching on the term “free copy of credit report” because you’ll be approaching lenders soon for a new car or home.  Or you may need to get your report to check on past inconsistencies.  Or you just may be curious.  That’s OK, because it’s always good to know where you stand in the credit market.

In fact, many different entities beyond just credit card companies will use the information in your credit report to determine whether you are a good risk.  These might include:

• Banks
• Merchants (such as department stores)
• Car dealerships
• Landlords
• Potential employers

It is possible that you could lose out on a great car, apartment or even job all because your credit report contained inaccurate information.

When Should I Start Searching for a “Free Copy of Credit Report”

If you know you’re going to be applying for a mortgage, car loan or other major purchase, reviewing your credit report a month or two before that application can give you the time you need to fix any problems – or be assured that all is well.  Because you can get a free copy of your credit report only once per year, be sure to time your request wisely.

Who Manages Credit Reports?

Vendors forward information about how you manage your bills, including notes on late payments, credit limits available and the like, to one of three different credit agencies.  These are:

• Experian
• Equifax
• TransUnion

These agencies take this information as well as information they share with each other to create a report that provides extensive details on your use of credit, from what your historic balances are to whether you’ve ever made any late payments.

How can I get a free copy of credit report?

The good news is that a federal law requires each agency to provide consumers with one free copy of their credit report every year.  The bad news is that a truly “free copy of credit report” is hard to find.  To avoid any surprise fees, you’ll want to turn to www.annualcreditreport.com, the site that was required to be established under the recently passed legislation.

How does the annual credit report site work?

Once you’ve landed on the right page, you’ll be asked to provide important information, such as your social security number and date-of-birth.  This information will be used to match you with the proper report.  Then you will be taken to a page where you can download reports from the three agencies.  Review these reports carefully for any inaccuracies – even something as simple as a name misspelling or inaccurate old address can lead to BIG problems in the future.

In short, your search for a “free copy of credit report” is over.  Utilizing the tools noted above you’ll be able to access at least one copy of your report per year.  Make it an annual promise to yourself – and your financial future!

If you have a credit account of any kind, whether a revolving loan, a credit card or even something like a mortgage, chances are you’ve started to understand what your credit report means for your future financial status.  Taking the time to review the accuracy of your report and fix any errors is essential to your future – at least when it comes to receiving financing.  In essence, going over a free copy of your credit report, and specifically an experian free credit report, is never a waste of time.

What is an experian free credit report?

Experian is the name of one of the three credit bureaus that keep track of consumer credit.  The other two agencies are Trans Union and Equifax.  So the term Experian free credit report refers to a free copy of your credit report from Experian.

Why should I get an Experian free credit report?

Your Experian free credit report provides valuable information for any company that you have asked to take a chance on loaning you money.  In addition, more and more employers and potential landlords are pulling credit reports to see if you might be a good risk for a job or an apartment.

What kind of information is in an Experian free credit report?

The report basically consists of important details about your financial situation, including:

• Bank accounts and their balances
• Current credit accounts and your payment history
• Past addresses
• Information on past judgments or collections

The more negative items you have on your report, the less likely you are to get favorable terms for your credit request or, in some cases, your request may be denied.

Should I pull reports from the other two agencies?

The Experian free credit report is not the only report that might determine your financial future.  You should also consider pulling reports from the other two agencies, Trans Union and Equifax.  Because different vendors and merchants report to different agencies, you may find inaccuracies on one report, but not another.

How can I get an Experian free credit report?

There are two main ways to get an Experian free credit report:

1. Go to www.AnnualCreditReport.com:  This is the truly free site established under federal law that provides consumers with access to one free copy of the reports from each of the three agencies once per year.  When you visit the site, you will be asked to enter some identifying information and answer some security questions.  Once you have gone through this process, you will have access to your report.
2. Go to www.freecreditreport.com:  This is the Experian specific site where you can access one free Experian free credit report.  However, you will be automatically signed up for a free trial of their credit monitoring service and will have to provide a credit card number for subsequent billing.  If you cancel within seven days (first time customers only), you can keep the report and not pay anything for the service.

Regardless of which process you use to access your Experian free credit report, be sure to carefully review the report for inaccuracies.  Even something simple like an unknown address on your report now can lead to big misunderstandings in the future.

Without a doubt, one of the best things you can do to stay on top of your financial situation is to check the accuracy your credit report.  In fact, it’s so important that the U.S. Government recently passed legislation to allow every citizen access once per year to a totally free credit report.

Why is my credit report important?

Many different entities  will use the information in your credit report to determine whether you are a good risk.  These might include:

• Banks
• Merchants (such as department stores)
• Car dealerships
• Landlords
• Potential employers

Imagine losing out on a great car, apartment or even job all because your credit report contained inaccurate information.

Who Manages My Totally Free Credit Report?

Vendors forward information about how you manage your bills, including notes on late payments, credit limits available and the like, to one of three different credit agencies.  These are:

• Experian
• Equifax
• TransUnion

These agencies take this information as well as information they share with each other to create a report that provides extensive details on your use of credit, from what your historic balances are to whether you’ve ever made any late payments.

How can I get a totally free credit report?

The good news is that a federal law requires each agency to provide consumers with one totally free credit report every year.  The bad news is that the free credit report is hard to find.  In fact, if you search on the term “totally free credit report”, a number of not-so-free options will pop-up.  To avoid any surprise fees, you’ll want to turn to www.annualcreditreport.com, the site that was required to be established under the recently passed legislaiton.

How does the annual credit report site work?

Once you’ve landed on the right page for your totally free credit report, you’ll be asked to provide important information, such as your social security number and date-of-birth.  This information will be used to match you with the proper report.  Then you will be taken to a page where you can download reports from the three agencies.  Review these reports carefully for any inaccuracies – even something as simple as a name misspelling or inaccurate old address can lead to BIG problems in the future.

Will my credit score be negatively impacted if I access my totally free credit report?

Some people have heard that just checking your credit report can negatively impact your credit rating.  Actually, this isn’t strictly true.  If you have too many requests from vendors, such as banks or merchants, your score may be affected simply because potential lenders might be concerned that you are considering taking on a great deal of debt.  However, the occasional personal review of your report on your own won’t make any difference in terms of your credit score, but could make all the difference on catching a problem early.

In short, utilizing the tools noted above to download and review your totally free credit report isn’t just a good deal.  It’s an essential component of financial success.  Mark your calendar for a yearly review – and then do it!

One of the most important things you can do to maintain a good credit rating is to check your credit report for errors and inconsistencies.  More often than we’d like to imagine, vendors make mistakes in what they report to the credit bureaus.  These errors can be something as simple as stating that a payment was late when it wasn’t or assigning a bad account to your name.  And, of course, there’s always the threat of identity theft, leaving you with potentially dozens of “unsatisfactory” entries on your credit report – and a plunging credit score.

But how can you keep track of your credit when getting a report from one of the three major credit agencies can cost anywhere from $14.95 to $49.95?  That’s where recent laws requiring that every agency provide at least one free yearly credit report can come in handy.

Why Should I Be Concerned About My Free Yearly Credit Report?

Your credit report, and specifically the credit score generated from the report, determines whether and on what terms you will be offered credit.  Everyone from mortgage lenders to car dealerships to department stores review your credit report to determine whether they will agree to extend you a line of credit.  They also use these numbers to determine important factors such as interest rates, fees and credit limits.  If your credit report is not great, you’ll be paying a great deal more for the privilege of using credit than you might like.

What Are the Potential Problems with my Free Yearly Credit Report?

As noted above, there are at least two problems that can occur in credit reports:

• First, there are simple administrative errors, such as a vendor reporting a payment late that really wasn’t, or the accidental assigning of certain bad accounts to your name.  If you have a common name, you should definitely double-check on at least a yearly basis to make sure that other accounts aren’t “lurking” on your report – and dragging down your score.
• Second, of course, is identify theft.  Every year millions of Americans find that someone is using their name, address and social security number to open credit accounts.  If you start receiving mail from companies you’ve never heard of about accounts you’ve never opened, you may be a victim of this crime.

How Can I Get a Free Yearly Credit Report?

First of all, be aware that recently passed laws require each of the three credit monitoring and reporting bureaus to give you one copy of your credit report absolutely free once per year.  If you find problems or inconsistencies on the report, you are entitled to additional free copies of the report until it is corrected.

Unfortunately, some of the advertising surrounding the concept of a “free yearly credit report” has been a little misleading.  For example, at the domain name www.freecreditreport.com, Experian is offering what it calls a “free credit report.”  However, this report is free only if you agree to sign up for a trial membership in Experian’s reporting service – a membership that will cost you $15 per month after the trial ends.  That doesn’t sound very free, does it?

The truly free yearly credit report can be found at www.annualcreditreport.com.  This is the system required by federal law that allows you to check your report for free once-per-year.  Utilizing your social security number the system offers you access to the records maintained by the three agencies.

In short, be sure to take full advantage of the free yearly credit report.  A thorough review and fixing of any problems may be what saves you from paying hundreds of dollars in extra fees and interest on your lines of credit.

The term “equifax free credit report” refers to a free credit report from a company called “Equifax.”  Equifax is one of three credit reporting agencies.  The other two are Trans Union and Experian.

The bad news is that in some cases, these bureaus will charge as much as $49.95 for access to your credit report.  But the good news is that you can get an equifax free credit report, if you just know where to look.

How Can I Get an Equifax Free Credit Report?

Each of the credit monitoring and reporting bureaus are required to give you one copy of your credit report absolutely free once per year.  If you find problems or inconsistencies on the report, you are entitled to additional free copies of the report until it is corrected.

The truly free yearly credit report can be found at www.annualcreditreport.com.  This is the system required by federal law that allows you to check  reports from all three agencies for free once-per-year.  Utilizing your social security number the system offers you access to the records maintained by the three agencies.

Why Should I Review my Equifax Free Credit Report?

Your credit report, and specifically the credit score generated from the report, determines whether and on what terms you will be offered credit.  Everyone from mortgage lenders to car dealerships to department stores review your credit report to determine whether they will agree to extend you a line of credit.  They also use these numbers to determine important factors such as interest rates, fees and credit limits.  If your credit report is not great, you’ll be paying a great deal more for the privilege of using credit than you might like.

Equifax is just one of the three agencies that maintain separate records.  While the bureaus share information and much of what you will find on their reports is similar, it still makes sense to seek out an Equifax Free Credit Report as well as an Experian and Trans Union report.

What Are the Potential Problems with my Equifax Free Credit Report?

Unfortunately, the credit bureaus aren’t always accurate in the information they add to your report.  Several things may happen that will impact the accuracy of your report – and hence your ability to get credit on favorable terms.

• First, there are simple administrative errors, such as a vendor reporting a payment late that really wasn’t, or the accidental assigning of certain bad accounts to your name.  If you have a common name, you should definitely double-check on at least a yearly basis to make sure that other accounts aren’t “lurking” on your report – and dragging down your score.
• Second, of course, is identify theft.  Every year millions of Americans find that someone is using their name, address and social security number to open credit accounts.  If you start receiving mail from companies you’ve never heard of about accounts you’ve never opened, you may be a victim of this crime.

Are There Other Ways to Get My Equifax Free Credit Report?

If you need access to your credit report more than the once a year offered through federal law, you might want to consider purchasing a plan that allows you access to monitoring and report information from all three agencies.  Each of the three bureaus offers a “3-in-1 monitoring service,” which provides you with access to all three reports and scores – for a fee.  Typically this service will cost around $15 per month.

In short, your good name is tied up with your credit – accessing your Equifax free credit report can help you preserve that name now and in the future.