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You can add and remove security freezes from your ChexSystems report after creating an online ChexSystems account, using the online form, by mail and by phone. Financial institutions may request a ChexSystems report when you or someone using your personal information applies for a new bank account or tries to cash a check. Freezing your report could stop an identity thief from opening an account in your name.
What Is ChexSystems?
ChexSystems is a specialty consumer reporting agency that compiles information related to checking and savings accounts. It's similar to how Experian is a consumer credit bureau that collects information related to your credit accounts.
Your ChexSystems report could include information on your closed checking and savings accounts, bounced checks, overdrawn accounts and your history of ordering and cashing checks.
Banks and credit unions may use your CheckSystems report, and an accompanying score, as part of their review process when you try to open a new account. They might decline your application if there are negative items in your report, such as unpaid overdrafts, bounced checks or signs of fraud.
Some banks offer second chance accounts, but it may be difficult to qualify for many bank or credit union accounts until you've cleaned up your ChexSystems report.
Why Freeze Your ChexSystems Report?
Adding a security freeze to your ChexSystems report limits access to your report and can help protect you from identity fraud.
If your report is frozen, it could be more difficult for someone else to open a bank account using your personal information. In turn, this could stop criminals from committing check fraud and using the account to launder money. (Note that a security freeze can also delay your application for a new bank account, so you'll want to remove or temporarily lift the freeze before applying.)
You might want to place a ChexSystems security freeze if:
- You've been a victim of identity theft
- Personal information such as your Social Security number has been exposed in a data breach
- Your wallet was stolen
The Fair Credit Reporting Act (FCRA) gives you the right to add security freezes to any of your consumer reports that are created by consumer reporting agencies. In addition to ChexSystems, you can add and remove security freezes on your Experian credit profile (and those with the other two major credit bureaus, Equifax and TransUnion) for free.
Note: A ChexSystems freeze can help prevent thieves from opening new accounts in your name, but it does not protect existing bank accounts, so you should still take steps to help prevent bank account fraud.
Step-by-Step Guide to Freezing and Unfreezing Your ChexSystems Report
You can freeze and thaw (temporarily unfreeze) or permanently unfreeze your report online, over the phone, by mail or, if you live in Hawaii or New Hampshire, via email. Placing a freeze online is the most efficient option; here's how to do it.
How to Freeze Your ChexSystems Report Online
- Create a ChexSystems account. To place a security freeze online, you'll need to register for an account at the ChexSystems Consumer Portal. Go to the Place a Security Freeze page and provide your name, date of birth, Social Security number, address and identification number from your driver's license, state or military ID. You'll be asked some security questions to verify your identity and will need to create a username and password and agree to the terms and conditions.
- Place a security freeze. Once you're logged in, simply select the "Security Freeze" option at the top of the page to place a freeze. Once you click Continue to place your freeze, ChexSystems will freeze your report within 24 hours.
- Receive your PIN. ChexSystems will send you a PIN via the Consumer Portal or by mail, depending on your request, along with directions for removing or temporarily lifting your security freeze. You can also use your PIN to change your personal identifying information, request a copy of your report and score and file disputes.
How to Unfreeze Your ChexSystems Report Online
- Visit the ChexSystems Consumer portal. Log in to your account and select the Security Freeze option at the top of the page, then Manage Freeze.
- Provide your PIN. Once you provide your PIN, you'll be able to view your security freeze and have the option to remove the freeze, schedule a temporary lift of the security freeze or remove a temporary lift. If you have lost your PIN, you can request a replacement online or by mail.
Frequently Asked Questions
Can I Freeze My ChexSystems Report for Free?
Yes. There is no charge to add, remove or lift a security freeze on your ChexSystems report.
Does Freezing Your ChexSystems Report Affect Your Credit Score?
Freezing your ChexSystems Report has no impact on your credit score. Your ChexSystems report compiles information about your use of deposit accounts, such as checking and savings accounts, not your use of credit.
Can I Still Use My Bank Account if I Freeze My ChexSystems Report?
Yes. A ChexSystems security freeze prevents new bank accounts from being opened using your personal data. It does not affect your existing bank accounts.
Monitor Your Identity for Unusual Changes
Credit report monitoring tools, including Experian's free credit monitoring, can help warn you when someone tries to open a credit account in your name, such as a credit card or loan. They can be an important part of keeping your identity safe, but they don't monitor bank accounts because your banking information isn't part of your credit history.
Even if you freeze your ChexSystems report, you may want to sign up for an identity protection program that monitors additional financial accounts, including bank accounts. An Experian premium membership provides identity theft protection and alerts you when someone attempts to take over your bank account or open a new bank account in your name.