Most banks do not run a credit check when you open a checking account
A credit check is a look at your credit history — your record of borrowing and repaying money. Banks do not need this information to open a checking account because a checking account is not a loan. You are not borrowing money from the bank; you are storing your own money there.
What banks do run is called a ChexSystems check or a similar banking history report. This is different from a credit check. It shows whether you have had problems with bank accounts in the past — things like overdrafts you did not pay back, accounts closed due to fraud, or repeated bounced checks. Banks use this to decide whether to open an account with you, not to decide how much credit to give you.
A few banks and credit unions do pull your credit report as part of their account-opening process, but this is uncommon and usually happens only if you are also opening a linked product like a credit card or line of credit at the same time. Even then, the credit check is for that product, not for the checking account itself.
Key Takeaways
- Banks check your banking history through ChexSystems or similar services, not your credit history, when you open a checking account.
- A ChexSystems check looks at past account problems like unpaid overdrafts or fraud, not at your credit score or borrowing history.
- Having no credit history, bad credit, or a low credit score does not prevent you from opening a checking account at most banks.
- Some banks and credit unions may pull your credit report if you are opening a linked credit product at the same time, but this is separate from the account opening itself.
- If you have been denied a checking account, it is usually because of ChexSystems issues, not credit problems.
What ChexSystems actually checks
ChexSystems is a company that keeps records on how people have managed bank accounts. When you open a checking account, the bank sends a request to ChexSystems asking for your history. The report shows whether you have had accounts closed involuntarily, whether you owe money to banks from past overdrafts, and whether there have been fraud disputes on your accounts.
The report does not include your credit score, your payment history on credit cards or loans, or whether you have ever missed a payment on a mortgage. It is purely about how you have handled deposit accounts — checking, savings, and money market accounts.
Banks use this information to decide whether opening an account with you poses a risk. If your ChexSystems report is clean, you will almost certainly be approved. If the report shows problems, the bank may deny you or may ask you to pay back what you owe before opening an account.
When a bank might check your credit instead
A credit check happens when you are borrowing money or when a lender needs to assess your creditworthiness. This includes credit cards, personal loans, auto loans, and mortgages. A checking account is not a credit product, so a credit check is not necessary.
However, some banks bundle products together. If you walk into a bank and open a checking account and a savings account and a credit card all at once, the bank will run a credit check for the credit card. That credit check is not for the checking account — it is for the credit card. The checking account approval is based on ChexSystems alone.
A small number of banks and credit unions do pull credit reports as a general policy during account opening, even if you are not explore for credit. This is rare, but it does happen. If you are concerned about this, you can ask the bank directly before you explore whether they run a credit check for checking accounts.
What happens if you have no credit history
If you have never borrowed money, you have no credit history and no credit score. This does not affect your ability to open a checking account. Banks do not care whether you have a credit history when opening a deposit account — they only care about your ChexSystems report.
Many people open their first checking account before they have any credit history at all. Teenagers, recent immigrants, and people who have always paid in cash can all open checking accounts without a credit score. The bank will not ask for one and will not check for one.
What happens if you have bad credit
A low credit score or a history of missed payments on credit cards and loans will not prevent you from opening a checking account. The bank does not look at your credit report when deciding whether to open a deposit account.
The only situation where bad credit might indirectly affect your checking account is if you have unpaid debts that a bank is trying to collect. If you owe a bank money from a past overdraft or a closed account, that bank may refuse to open a new account with you until you pay what you owe. But this is a ChexSystems issue, not a credit issue.
How to learn about you have ChexSystems problems
You can request your own ChexSystems report for free once a year, the same way you can request your credit report. Go to www.chexsystems.com and follow the steps to order your report. You can also call them at 1-800-428-9623.
If your report shows problems — a closed account, an unpaid overdraft, or a fraud dispute — you have the right to dispute the information if it is wrong. You can also add a statement to your report explaining your side of what happened. Some banks will open an account for you even with problems on your ChexSystems report if you explain the situation.
If you have been denied a checking account and you do not know why, ask the bank which service they used to check your history. If it was ChexSystems, request your report and see what is on it. This will tell you whether the denial was because of banking history or for another reason.
Banks that may work with you if you have ChexSystems issues
Some banks and credit unions specialize in opening accounts for people who have had problems with banks in the past. These are sometimes called second-chance banking accounts. They may have higher fees, lower account limits, or require a larger opening deposit, but they do not require a clean ChexSystems report.
Credit unions are often more flexible than large national banks. If you have been denied by a major bank, try a local credit union. You may need to join the credit union first (membership requirements vary), but many credit unions will work with people who have ChexSystems issues.
Online banks sometimes have looser ChexSystems requirements than brick-and-mortar banks, though this varies. If you have been denied elsewhere, it is worth calling an online bank and asking whether they will open an account for you given your history.
Frequently Asked Questions
Will opening a checking account hurt my credit score?
No. Opening a checking account does not affect your credit score because banks do not report checking accounts to credit bureaus. Your credit score only changes when you borrow money or when a lender pulls your credit report. A checking account is not a loan, so it has no impact on your credit.
Can a bank deny me a checking account because of my credit?
A bank can deny you a checking account, but not because of your credit score or credit history. The denial would be based on your ChexSystems report — your history with bank accounts. If a bank tells you that you were denied because of credit, ask them to clarify what they mean and request your ChexSystems report to see what information they used.
What is the difference between a hard pull and a soft pull?
A hard pull is a credit check that shows up on your credit report and can slightly lower your score. A soft pull is a background check that does not affect your credit. If a bank runs a credit check when you open a checking account, it would be a soft pull, not a hard pull, so it would not hurt your score. However, most banks do not run any credit check at all for checking accounts.
Do I need a credit card to open a checking account?
No. A checking account and a credit card are separate products. You can open a checking account without ever having a credit card. The bank does not require you to have credit history or a credit card to open a deposit account.
What if I was denied a checking account and I do not know why?
Ask the bank for the specific reason. By law, they must tell you. If they say it was because of ChexSystems, request your report from ChexSystems to see what is on it. If the information is wrong, you can dispute it. If the information is correct but you think the bank made a mistake, try a different bank or a credit union.