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Banks and chexsystems
 

Hello all I have opened up many banks within the past few months and this has caused too many inquiries on my chexsystems report. For those who don't know, an inquiry is simply a report that is made to chexsystems every time you go to open a bank account, giving bank name, date, type of account, etc. I have nothing negative on my chexsystems report, but too many inquiries cause red flags and banks stop opening accounts for you.

There is nothing else reported wrong on my chexsystems. I don't owe money to any banks or anything like that. Just too many inquiries.

Does anyone know how long until these inquiries drop from your chexsystems report? I read that it depends on the bank - some banks drop them after 3 months and some banks can take a year. Just want to know if anyone has any other info.

Also, should I close the banks I currently have open? Or would that hurt me more?? Should I close them slowly over the next few months? I don't want to raise any more flags by closing all these banks at once.

Re: Banks and chexsystems
 

I've been curious about this myself lately, so I ended up doing research. 80% of American banks use ChexSystems, while the other 20% use other means. Each ChexSystems entry is deleted after 5yrs.

Re: Banks and chexsystems
 

Don't close the accounts! The best thing to do is to open one account at one bank. Then, open some more at the same bank. Most banks only use ChexSystems when your first account is opened. It costs them money to pull a report, so they usually only run it when they have to. It is not unusual for a person to have 1 checking, 1 savings, 1 business account, 1 Christmas account, 1 building account, etc.

It is true, if you open too many accounts at too many banks too quickly, then they think you might be committing fraud. It is not normal for one person to open tons of accounts in a short period of time.

You can find the banks that do not use ChexSystems, or try some "second chance" banks. Or, try getting a couple more accounts with your current banks. One time, I had 4 accounts opened at one bank. 3 of the 4 were attached to burned accounts. So, I went into the bank and told them I had either lost my wallet or it was stolen, it was just missing and I was not sure if I dropped it somewhere or if someone pickpocketed me. They immediately closed all 4 accounts and opened 4 new ones for me.

EDITED TO ADD: You can also enlist the aid of your spouse, or a family member. They can open accounts for you. While it is best to not mix up your business dealings with anybody else, it CAN work out as long as you are honest with them about what you are doing and they are comfortable with it. Don't push if they don't want to do it. Not everyone likes the idea of stealth, and you don't want a nervous person constantly worrying about the accounts. Also, you should agree that if anything happens, you will make up any losses, so they will not be adversely affected. It is the right thing to do.

Re: Banks and chexsystems
 

Unfortunately even if you have bank accounts already opened at a bank, many banks will still run a chexsystems on you if you go to open a new account with them. My chexsystems report showed inquiries for every account I opened over the past few months, even if it was with the same bank.

Yes there are a several banks out there that don't use chexsystems. However there are only so many accounts I can keep opening at the same banks before those disappear as well. These banks that don't use chexsystems will hold me over a little longer, but soon I will not be able to open any more accounts at these banks either. Even if I get creative with excuses to use as to why I need all new account numbers, I will eventually run out. So I am just looking ahead as to when I can start opening accounts again.

The 5 year timeline is for more serious marks on your chexsystems account for things like being reported for owing a bank money. But simple inquiries disappear sooner than that as long as nothing else pops up on your chexsystems - another reason why I just want to cool off all together. I was just curious if anyone has experience waiting for inquiries to drop off their report.

Re: Banks and chexsystems
 

You shouldn't be that worried about the Chex system the reason I say this because the Chex system is designed to see if you owe a bank money and decide not to pay. I would open up a business checking at this point if your worried about too many inquiries. Banks tend to bother less about business bank accounts because most likely your going to be paying 10-15$ fee a month.
Credit reports and your FICO is something I would worry about. If you ever need funding to start a business.
As long as you do not owe money on a bank account usually opening many bank accounts are a normal thing. Just don't run into the negative with a bank account and decide not to pay. Then I would say that would greatly affect your Chex system report.

Re: Banks and chexsystems
 

You also have to look at a banks point of view too are you making them money or losing them money. I always go the route of opening business bank account because then your paying them those fees. It's a small price to pay in terms of doing business

Re: Banks and chexsystems
 

That actually leads me to another question. If I open a corporation and apply for business checking accounts for that corporation, and the bank goes to pull a report from chexsystems, is this report going to show all previous inquiries under my personal name, or since I am applying with a corporation will it be a fresh new report free of any inquiries I made under my personal name???

Re: Banks and chexsystems
 

The big banks also use their own chex systems it's called early warning services. They keep their own tabs on you in addition to chex systems so watch out and check that report as well.

Re: Banks and chexsystems
 

any idea if they differ at all in terms of how they report different activities to banks?

Re: Banks and chexsystems
 

Yes. That's exactly what it is. It's owned by the 4 or 5 big banks. Google it.

Re: Banks and chexsystems
 

This does not sound like you, you are giving people an opening to the dangers of banking when it is not as hard as you imply.

Open a bank, Credit unions are great
make multiple accounts with that account slowly( once every few months)
open another account at a different bank for future use.

Not hard, most credit unions will allow 10-20 accounts with the same account. No need for business/ or any of that BS. Checking and savings will do. Mostly checking

PNC wallet is also a great option

Re: Banks and chexsystems
 

PNC is not a great option when you have too many inquiries on your chexsystems report :(

Neither are most banks..

Credit unions are good to hold me over a little longer, but if I'm looking to keep on going long term I will need these inquiries to drop from my chexsystems.

Re: Banks and chexsystems
 

Here is a list of Banks that don't use ChexSystems ChexSystems Bites! - List of Good Banks

Re: Banks and chexsystems
 

Thanks. I have seen that list. Many of those banks will not reliably accept deposits in mismatched names, and half of them say they don't use chexsystems but they do indeed use it, or some other form of verification like Early Warning Services as previously mentioned on this thread.

Re: Banks and chexsystems
 

How many accounts have you opened?

More than 7000 banks in the USA right now. Hard to imagine running out of banks/prepaids, etc..

Re: Banks and chexsystems
 

nodeal what da hell are you exactly asking for man? seems like your making life more difficult than it needs to be:ranger:

Re: Banks and chexsystems
 

i'm gonna need you to type them out for me please

Re: Banks and chexsystems
 

Yes but when you are being flagged in chexsystems, I am finding my options very limited.

Prepaids are an option I'm still exploring. A lot of trial and error involved.

And to answer your question I have opened approximately 30-35 banks in the past 3 and a half months

Re: Banks and chexsystems
 

What I am asking - from my first post - and bolded for emphasis:

Does anyone know how long until these inquiries drop from your chexsystems report? I read that it depends on the bank - some banks drop them after 3 months and some banks can take a year. Just want to know if anyone has any other info.

Also, should I close the banks I currently have open? Or would that hurt me more?? Should I close them slowly over the next few months? I don't want to raise any more flags by closing all these banks at once.

Re: Banks and chexsystems
 

If you qualify, join Navy Federal credit union, they dont look at chexsystems.

And business accounts work so much better. Well worth the cost and hassle to start a LLC or Inc.

Re: Banks and chexsystems
 

opening a bank account every 3-4 days? jesus christ wtf are you doing

Re: Banks and chexsystems
 

How many 30-35 accounts at different banks was opened.

Re: Banks and chexsystems
 

I don't qualify for Navy Federal Credit Union :mad2:

I will go to business accounts when my inquiries drop - it seems worth it to open an LLC for business accounts. But when I go to open a business account, do they still run a chexsystem on my personal name? Or is it a separate report for the LLC only?

About 12 different banks I successfully opened accounts at.

Re: Banks and chexsystems
 

Not just for stealth - ever hear of bank account churning?

Re: Banks and chexsystems
 

:confused::confused::confused:

Re: Banks and chexsystems
 

Its different when it comes to Business accounts. They cant really pull your info because you created an separate entity which is your business. AS long as you haven't skipped town with money or funds owed to the bank. They will open the account for you. The Chexsystem is design personal more than business.

I would apply for C corp in Wyoming. With INC file. The cheapest when it comes to incorporating.

Usually with Business accounts they will go by EIN or TIN numbers not your SSN usually. They will ask your SSN because your the responsible party for the account. Although the IRS or any government or business will look at your business as an separate entity.

The Federal Tax ID is basically getting a new lease on life. PP looks at the Federal Tax ID and reports that. Businesses in the USA get more leniency in certain ways. The USA has always been all about business.

Btw this not any legal advice or pertaining to anything legal. Its what I learned throughout my years of opening accounts and closing. :)

Re: Banks and chexsystems
 

Thanks, I really appreciate this input. So just to reiterate: my PERSONAL name is raising flags in chexsystems because I have too many accounts that I either opened or tried to open (called inquiries on the chexsystem report). Now if I open a corporation, and go to open a business checking account with this corporation, that bank WILL NOT pull MY PERSONAL chexsystems report, as my corporation is a separate entity, and therefore will not be flagged when going to open the account. Is this correct?

Kudos to you for addressing my questions directly :) much appreciated!

And just to throw this question out there again because you seem knowledgeable on the subject: Do you know how long it takes for these inquiries to drop from my chexsystems report? I am reading it can take 3 months to a year depending on the bank, just wanted to know if you had any personal experience with this :)

Re: Banks and chexsystems
 

Yes opening too many personals will raise flags. Its never good to open up too many. You want to do a combo of existing accounts by opening up savings accounts. Although you need to start moving to open up business accounts. It easier to open them in certain way because you can be selling a new line of products and seeing the numbers. A business banker would understand that. But customer who opening 20 personal accounts. Its get harder to explain.

Correct. Usually when pulling the chex. All they want to know for business that you havent owed any bank money or skipped town. With a business account your more able to do a lot of things and open up accounts. Make sure you come in strong and know what your talking about. They will ask what type of business is it, what your average deposit and so on. Are you planning to do wire, what your cash deposits looking like. Just don't sound dumb in front of banker it wont help. Just say your looking to start e-commerce site and keep it vague and to the point. Just give enough info that would keep the banker at bay.

It will drop over time. I am not sure how long. Although Your best bet is open up business bank account from now.

Re: Banks and chexsystems
 

I will move forward with this advice in mind. Thank you my friend!

Re: Banks and chexsystems
 

I would be careful about opening a out of state business since you will need a out of state registered agent for that.

Some banks will not accept an out of state registered agent when you apply for a business account, Chase bank is one of them.

Re: Banks and chexsystems
 

Yotano, yes if you plan to use a credit union or local bank that doesn't have banks across the country.

The fact is register agents are cheap. They are not expensive at all. Banks like chase Wells Fargo pnc Citibank, usbank are registered in every single state.

It retarded to go with local bank for stealth.

Please get your information straight yotano. I have used chase and they will open bank account registered in Wyoming. I have open up several with chase. Big banks have uniform federal banking licenses.

If you used chase 10 years ago. They would not. Now rules have changed.

Re: Banks and chexsystems
 

Best bet if you want to be sure is ask business banker. If they say they can't open up account because of state just call HQ. They will straighten the branch out. Branches get authorization from HQ

Re: Banks and chexsystems
 

Why would it matter which state you open the bank account in the first place.

Re: Banks and chexsystems
 

nodeal is talking about opening and closing bank accounts just to get bonuses/rewards that are offered. For example, if I deposit $15,000 into Chase, they are currently offering a $200 bonus.

But, I highly doubt this is what nodeal is doing. More like, can't pay the bills and needs to keep opening new accounts. Also, perhaps some tomfoolery with ste/alth and fra/udulent selling practices. I just can't take this thread or his/her posts seriously. Churning does not even offer enough profit for the amount of work involved and I believe these cash bonuses/rewards are also taxed.

Re: Banks and chexsystems
 

Weird, I tried to open a Chase account in NV, when I was living there, with a registered agent, and LLC, from Wyoming. I went to two Chase banks and was told the same thing. They cant accept the out of state agent.
This was about 1.5 years ago.

My info is as straight as my 8 inch manhood when I look at Kate Upton.

But I will take your advice and call each bank's headquarters if I get denied again. Was referring to the bigger banks, not the smaller local banks.

Re: Banks and chexsystems
 

honestly I still don't understand what op is really asking. what solution is he/she really seeking here. im lost... why do you need so many bnk accts and why are you closing OR trying to close so many. sounds idiotic...:ranger:

Re: Banks and chexsystems
 

How are you going to handle 50 stealth accounts with 5 bank accounts? I could understand numerous bank accounts if you're running stealth, but closing the accounts immediately is a no no.

Re: Banks and chexsystems
 

EZ...:heh::spy::heh:

Re: Banks and chexsystems
 

I churn bank accounts, credit cards, gift cards. It all adds up and helps - money, miles, points at stores. It is not a lot of work and a lot of people do it.

But we aren't here to debate the effectiveness of these things, and making baseless accusations contributes nothing. Please stop.

Re: Banks and chexsystems
 

:doh:

dealagreeproceed lol come ON buddy!

When you open a bank account or try to open a bank it shows up as an inquiry on your chexsystem report. If too many inquiries show on your chexystems report, banks that use chexsystems will stop giving you bank accounts. These inquiries drop off after a certain amount of time.

I want to know: IF ANYONE HAS ANY EXPERIENCE WITH THE LENGTH OF TIME IT TAKES FOR THESE INQUIRIES TO DROP OFF FROM YOUR CHEXSYSTEMS REPORT.

That is what I am asking! It is not a solution I am looking for, I don't need a solution. I simply want to know if anyone knows the answer to that question.

And I don't NEED to close these accounts, I simply asked if SHOULD close them. In other words, will closing them (slowly) help or hurt my chexsystems report.