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Impact Of Rate Chasing On Chexsystems Score

rvsubj
  |     |   11 posts since 2023

I recently checked my ChexSystems score (which is available for free at their website) and was surprised to find it was 639. My FICO score on the other hand is 820 and I have no blemishes on record, so this was a little puzzling. A little research revealed that these two scores are unrelated as one is determined by credit history while the other is mostly based on DDA inquiries.

The top reason listed for my ChexSystems score was "RECENT UNIQUE FI DDA INQUIRY HISTORY". I have opened 3 Savings accounts in the last 3 months (a total of 5 in the last 12 months), so that seems to have had a negative impact. While 639 apparently is still a decent score, I am debating if I should really limit the number of accounts I open at FIs that use ChexSystems, going forward.

With all the rate chasing that has been going on, I am sure a lot of folks are opening multiple accounts. That led me to wonder:

1) How many accounts have you been able to open in a short span of time, without adversely impacting your ChexSystems score or worse, getting rejected by FIs for too many inquiries.

2) What would one consider to be a good ChexSystems score? 580+ is the number I have come across, but not sure how accurate that is.

Thanks!

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8


Answers
JeffinEasternFL
  |     |   744 posts since 2020
Interesting, I just went to the site and requested mine, once USPS delivers I'll be interested in what I find there too!
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choice1
  |     |   370 posts since 2023
Let’s see…the same organization that collects, stores, and sells info is the same entity that takes “its data” and gives you a rating! Clear conflict of interest!
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3
Rickny
  |     |   1,296 posts since 2017
The only time I had a problem with Checksytems is when a bank put an erroneous address in my account and then refused to open an account. The only reason I was opening an account was for a $400 bonus forjust opening a checking account no DD. Long story short the problem was corrected and I got the bonus. I was able to get a Checksytems report which had from I believe had 35 accounts. It had a statement that implied I was an excellent credit risk. The person from the bank stated I was considered by the bank as a "rate chaser". I closed the account after I got the bonus.

When we were looking at houses in NC last year, we had to get pre approved for a mortgage. They did a credit check and my score dropped from 827 to 820. So I wouldn't be that concerned with xhecks on your credit compared to missing payments and orher negative behaviors.
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4
sams1985
  |     |   781 posts since 2022
Interesting, i have opened maybe 7-8 accounts in the last year, some to rate chase but others for the sign on bonus. I have not been denied yet but curious to see what my report says.
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4
mffarrell
  |     |   95 posts since 2018
I had the same problem you had in 2018 and was turned-down on a couple of occasions to open a new account. I don’t have this problem today, as I don’t rate chase anymore unless it’s an unreal deal which I haven’t seen yet.

Instead, I have mostly brokerage CDs and some with my long-time CUs, like Navy, GTE and so on.
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2
Rickny
  |     |   1,296 posts since 2017
Never turned down on an account. Only the idiot at the bank who put incorrect information on an account and I was able to get the erroneous info hidden for checks. I have been only turned down by 1 CU and they never told me why.
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GregoryInBelize
  |     |   193 posts since 2022
I was turned down by ALLY for an account early last year. Turns out their information for not approving me was Chex Systems. I had opened a dozen accounts in the last 12 months. Although my FICO was 840, my chex system score was in the 600s because I opened so many accounts. Most people have no clue about them or LexisNexis (another worthless company).  Glad I dont have to deal with them anymore.
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Rickny
  |     |   1,296 posts since 2017
Greg I just opened an account with Ally and had no problems (I had an account with them years back and the logon was still active.

If you are denied an account because of Checksytems you are entitled to a free report. I opened numerous accounts every year.
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1
GregoryInBelize
  |     |   193 posts since 2022
How do you think I knew it was because of chex systems? I did get the report with a score. Ally just said it was because of too many accounts being opened in a 12 month period because of information contained on my chex systems report. Ally was the only bank that ever denied me.
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1
Infinityy
  |     |   107 posts since 2020
1) Financial institutions vary a lot in terms of whether they care about Chexsystems inquiries. Some of the ones that do care, are less sensitive if you apply in-branch where you can confirm verbally that you do chase deposit rates/bonuses. 3 inquiries in 90 days is a common threshold you might want to stay under.

2) Chexsystems scores are not really analogous to credit scores because a higher score doesn't earn you better interest rates or more favorable deposit account terms. Mid-600s is high enough to get approved at virtually all financial institutions.
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2
sams1985
  |     |   781 posts since 2022
Just signed up to request my disclosure and score and it's 623. I have opened 4 accounts in the last 90 days so that may be it. Interestingly enough, i got approved for the GTE jumbo CD despite the 623 (which was the last account i opened that is listed).Looks like GTE does a hard pull AND uses chexsystems.
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2
Infinityy
  |     |   107 posts since 2020
Some institutions pull Chexsystems for CD's, but don't review the report as carefully as they would for a transactional account. You might even be able to keep your Chexsystems report frozen to avoid the inquiry, although not all institutions permit this.
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GH1
  |     |   1,053 posts since 2017
Yes I have been posting about this for 18 months since rates started to rise. Opening 3 accounts in 12 months will get you denied. Even if u have an account at the institution already. I complained and was told sorry sir apply again In a month but no guarantee. I said I have one cd with you already. Sorry sir management follows check systems.

Best overall bet is to have a brokerage account no hassles with these rules in place. Especially with rates rising
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2
GH1
  |     |   1,053 posts since 2017
Here is the list of all banks and cu using checksystems


https://www.doctorofcredit.com/banks-credit-unions-dodont-pull-chexsystems/
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4
Rickny
  |     |   1,296 posts since 2017
GH1 Thanks for the list
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2
CDMD
  |     |   141 posts since 2022
Thank you to all. This is a great thread. I learned much by this.
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MY2CENTSWORTH
  |     |   436 posts since 2016
GH1, not an entirely accurate statement. I have opened far in excess of three accounts in just the last three months at both banks and credit unions that I had been using previously, but also many new FI's and have not been denied for any reason. So it would be nice to know exactly what criteria the many different FI's utilize, but I assume it's more or less a crap shoot depending on many things.
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3
Evil_Capitalist
  |     |   157 posts since 2022
The usual scenario is that the applicant makes a mistake or puts in slightly different entries on their latest application which doesn't jibe with their Chex Systems details which causes the application to be flagged for human review. Otherwise they would be approved by the automation immediately..
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