While nothing is 100% when it comes to human or bank error, there are some things you can do to help protect yourself and stay off ChexSystems.

Avoid Unpaid Balances

You do your best to avoid overdraft or NSF fees. Sometimes things happen that are beyond your control – your paycheck doesn’t deposit on time, you try to deposit a check from a friend or business partner that bounces, or the ATM generates an error that puts you in the red. Any of these can cause a negative balance. Paying it back promptly can often forestall a report being made to ChexSystems.

Always Double Check Information

With dozens of fields to fill in on dozens of forms, a typo is easy to make. Make sure you ask for a print-out and review your information regularly. Even if it is a mistake, providing false information can be seen as fraud and land you in hot water.

Don’t “Kite” Checks.

It may seem tempting to “rob Peter to pay Paul” with multiple bank accounts, shifting money back and forth to try to stay ahead of deposit dates. Modern banking means many ACH systems update immediately or at least daily, so this can be dangerous behavior.

Don’t “Float” Checks

Likewise, writing a check one day while intending to deposit the money to cover it the next can cause issues with faster bank update times. Your bank may see the check before they see the deposit, and charge a NSF fee or overdraft fee as a result. Many merchants now process checks electronically as an ACH transaction which means little or no delay – it’s more like using your debit card.

Don’t “Bounce” Checks

Writing a check in a pinch because you know it will overdraw you but you have overdraft is sometimes the only solution to a bad situation. Don’t get in the habit of doing this regularly, however, as repeated overdraft abuse can be seen as irresponsible banking and you’ll be viewed as a risk by other banking institutions.

Close Old Accounts

Make sure you close any old accounts when you move, pay any balances, and get a letter from the bank saying it is closed with no outstanding fees or charges. Leaving this step incomplete can mean an account staying open but unused, racking up service fees and becoming a negative balance – which is then reported and can cause issues.

Watch ATM Usage

Some banks let you withdraw more than what is in your bank account with a fee attached. This is like an on-purpose overdraft. Again, abuse of this option can cause red flags.

Monitor Joint Accounts Closely

When multiple people are using a single account, it’s harder to keep track of transactions and balances. Using online and mobile banking can help you stay in the green.

Using these tips can greatly reduce your chance of ending up in ChexSystems. If you do find yourself with a bad report, call CFS for help.