One of the first financial steps that many people take is opening achecking and savings account. Doing so lets you easily pay for everyday expenses, as well as save up for certain milestones in the near future.
Both types of deposit accounts offer a safe place for your cash, but their purposes differ: A checking account holds your spending money for things like monthly rent and bills, while your savings account acts as an emergency fundthat stores money put aside for a rainy day. People commonly open a joint checking and savings account at the same time so they can easily transfer funds from one to the other.
Banks don't look at yourcredit scorewhen you open a checking and/or savings account, but they may screen your banking history. Potential account holders might be screened through a reporting agency called ChexSystems, which pulls your checking and savings account history similar to the way your credit history is pulled for yourcredit report.
The requirements are not as tough, however, as newcredit cardapplications. Below, we take a look at what you can expect.
What happens when you open a checking and savings account
Opening a checking andsavings accountrequires that you have proof of a few things: your age (you must be 18 or share the account with a legal guardian),your identification (you must be a legal U.S. resident) and your current address. But you don't have to worry about where your credit score stands.
According to Experian, one of the three main credit bureaus, banks and credit unions don't check your credit score when opening these two bank accounts. They may instead run aChexSystems report.
A ChexSystems report shows banks a potential customer's past activity with deposit accounts. It shows any unpaid negative balances (from overdrafting), frequent overdraft fees, bounced checks and suspected fraud.
Access a free copy of your ChexSystems report once every 12 months by going to the consumer reporting agency'swebsiteorby calling 800-428-9623. Note that your ChexSystems report has no direct impact on your credit score.
Why you should monitor your credit
On Experian's secure site
Cost
Free
Credit bureaus monitored
Experian
Credit scoring model used
FICO®
Dark web scan
Yes, one-time only
No
Terms apply.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
Potential account holders might be screened through a reporting agency called ChexSystems, which pulls your checking and savings account history similar to the way your credit history is pulled for your credit report.
Do banks check your credit score when opening a checking account? ›
You don't need a credit score to open a bank account because banks don't check your credit when you apply for an account. Instead, they'll take a look at your ChexSystems report, which contains information about your banking history. Here's what to know before applying for a new bank account.
Can I open a bank account without a credit check? ›
You can open an account without having to go through a credit check. No credit check bank accounts typically have low fees or no fees at all. No credit check bank accounts offer many of the same features as traditional bank accounts, such as debit cards, online banking, and bill pay.
Does Chase check your credit score to open a checking account? ›
You don't need a certain credit score to open a Chase checking or savings account, as there is no credit score requirement. Chase does not require a credit score for these accounts because they are deposit accounts, not loans or lines of credit.
Does bad credit affect opening a bank account? ›
The good news is that your credit doesn't usually affect your ability to get a bank account. But another type of consumer report — your ChexSystems report — might come into play if you have a history of negative banking activity, Here's what you need to know.
What disqualifies you from opening a bank account? ›
Such negative activities that show up on your report and hurt your approval chances include bouncing checks, leaving an overdraft balance unpaid, abusing a debit card or applying for too many accounts in a short period of time, according to credit bureau Experian.
What bank will let me open an account with bad credit? ›
The Top 10 Bank Accounts for Bad Credit
- Chime - Chime checking offers features such as no service fees and no minimum balances.
- Current - A Current account does not require a minimum balance. ...
- Varo - A Varo checking account does not require a minimum balance or a monthly fee.
While banks don't check your credit when you're opening a savings account, they may check your deposit history depending on what type of savings account you open. For example, opening a savings account with built-in overdraft protection could increase the chances of a deposit check.
What's the easiest bank to open an account with? ›
Summary: Easiest Bank Accounts To Open in 2024
| Account | Approximate time to complete application |
|---|
| Varo Bank Account: Best for Cash Advances | 2 to 3 minutes |
| SoFi Checking and Savings Account: Best for Member Perks | 1 to 3 minutes |
| Wise: Best for Non-Residents | 1 to 3 minutes |
| Chime® Checking Account: Best for Bad Credit | 3 to 4 minutes |
Jun 7, 2024
Summary: Best Banks That Don't Use ChexSystems
| Bank / Credit Union | Forbes Advisor Rating | LEARN MORE |
|---|
| SoFi Checking and Savings Account | 4.5 | Learn More On SoFi's Website |
| Capital One 360 Checking Account | 4.5 | |
| Chime® Checking Account | 4.4 | Learn More On Chime's Website |
| LendingClub Bank Rewards Checking | 4.2 | Learn More Read Our Full Review |
1 more rowBanks typically do not check your FICO score when you open a checking account. Instead, they may review your banking history through ChexSystems, which records banking behaviors like overdrafts. A negative ChexSystems report can prevent you from opening a bank account.
Can you be denied a Chase checking account? ›
If your name is listed in the system and it reports a low score, your banker will give you a copy of the free ChexSystems report and likely decline your application. When you're denied an account due to a low ChexSystems score it can be disappointing—but do not lose hope.
Do I need to unfreeze my credit to open a bank account? ›
A credit freeze is a security measure you can take to prevent new accounts from being fraudulently opened in your name. But that also means you can't open a new account yourself while the freeze is in place. Credit freezes work by blocking new creditors from reviewing your credit report.
Can I open a checking account without a credit check? ›
Opening a checking and savings account requires that you have proof of a few things: your age (you must be 18 or share the account with a legal guardian), your identification (you must be a legal U.S. resident) and your current address. But you don't have to worry about where your credit score stands.
Can you open a savings account if you have bad credit? ›
Many financial institutions, including traditional banks, online banks and credit unions, offer accounts with flexible requirements for folks who've had money trouble in the past. Namely, they don't use ChexSystems to screen your banking history.
Do banks do a hard credit check when opening an account? ›
For the most part, opening a checking, savings, or cash management account will not hurt your credit score. Banks, credit unions, and other providers typically do what is known as a soft pull, not a hard pull, when considering your application. This process should not lower your credit rating nor linger on your report.
Can you be denied a checking account? ›
You can be denied a checking account for a number of reasons, such as negative marks in your banking history, suspicions of fraud or an inability to verify your identity.
Does opening a bank account go against your credit score? ›
If possible, you should avoid or minimise these to keep your score as high as possible: Frequently setting up new accounts. Opening a new bank account should only lower your credit score temporarily – but if you do it too often, your score won't have time to recover. Being close to your credit limit.
Do banks do credit score checks? ›
Lenders complete credit checks to help them assess the risk of offering credit, and how likely it is to be repaid, based on your past financial history and personal circ*mstances. Other companies may also complete checks before offering services to you.
Do banks have access to your credit score? ›
Financial institutions look at your credit report and credit score to decide if they will lend you money. They also use them to determine how much interest they will charge you to borrow money. If you have no credit history or a poor credit history, it could be harder for you to get a credit card, loan or mortgage.
