Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep track of their personal financial transactions ? installment loans, mortgages, credit card accounts, bankruptcies and judgements. These items are assembled by the three main credit bureaus into a credit report, which is available upon request by lenders, employers and anyone else with whom a consumer might do business. The credit report tells these people, in a simple, summarized form, whether or not a consumer is worthy of more credit or another loan. What few people realize is that there is another firm that keeps track of the banking transactions by American consumers, and that information is available only to banks in the form of a debit report. You may not have heard of a debit report, but it can affect you in ways you may not even realize and can prevent you from opening a bank account.

The debit reports are compiled and maintained by a company called ChexSystems. ChexSystems maintains a database of banking transactions by consumers, and creates a "debit score" based on deposits, withdrawals, overdrafts, and whether or not an account has been forcibly closed. Generally speaking, you probably won't have an entry in ChexSystems' database unless you have a history of writing bad checks, overdrawing your account too much, or having your account closed by your bank. On the other hand, people sometimes have entries put in the database by error and don't find out about their entries in the database until their request to open a checking account is denied by their bank. Most banks now use this system, and while some provide a little latitude, most will refuse to do business with anyone who has a negative entry in the database.

The system was originally designed simply to keep track of people who wrote bad checks, but over the last three decades it has evolved into something much more elaborate. Consumers are entitled to receive a copy of their report from ChexSystems, but few people request one, as most people have never heard of the company or their product. The debit score for an individual is only available to banks.

Since few people can make do without a bank account these days, it's worthwhile to at least be aware of this system. We couldn't find a Website for ChexSystems, but they can be reached by phone at 800-428-9623. In addition, there are numerous third party Websites devoted to helping people who have had problems establishing bank accounts due to problems with their debit report. Just type "ChexSystems help" into your favorite search engine.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.

---

Debt Collection Agencies

Debt collection agencies are often a viable option for receiving... Read More

What You Need to Know About Interest Rates

For all people shop around for the best rate, there... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type... Read More

Understanding Your Credit Score

When you apply for credit one of the first things... Read More

A Summary of the Fair Credit Reporting Act

This summary of the Fair Credit Reporting Act will explain... Read More

First Major Regulatory and Legislative Victory of 2005 for Creditors and Consumers

Under the Fair Debt Collection Practices Act, collectors are not... Read More

Understanding Credit Card Penalties

Because most of us have one or two credit cards... Read More

A Cure for an Ailing Credit

Credit has become a much-used word, thanks to the various... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

How A Prepaid Debit Card Can Help You Rebuild Your Credit

Consumers today are up to their eyeballs in debt. And... Read More

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

Why Americans Find Predatory Lending Offensive

"Menis - the author translates as "indignant rage" - It... Read More

Ten Steps To Building A Good Credit History

Are you thinking of buying a house? Do you want... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

All You Wanted to Know of Bad Credit

Martin Henderson is in a fix these days. Because of... Read More

Why Does Your Credit Card Rate Keep Going Up?

Have your read your credit card contract through completely? Do... Read More

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks,... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product... Read More

Shoppers Beware - Tis The Season

It's the number one complaint from consumers and it only... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

Dont Trade Your Future for Todays DooDads

"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More

Credit Report Hassles

There is no end to the amount of pain that... Read More

Credit Cards or Store Cards - Which Is Better?

Introduction In this article, a presentation is made of the... Read More

Special Credit Information for Married Couples

If you are married, establish separate credit accounts.Try to finance... Read More

How To Save Money On Credit Cards

Some credit cards offer a cash advance option. But how... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let's face it, if you are facing the possibilities of... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you... Read More

What Does Your Credit Say About You?

A credit report is more than just a snapshot of... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More