Banks usually do not check your credit score for a checking account
Most banks will not look at your credit score when you open a checking account. Instead, they check a different system called ChexSystems, which tracks your banking history — whether you have bounced checks, had accounts closed for owing money, or committed fraud. A checking account is a basic service that banks offer to almost anyone, so they focus on your past banking behavior rather than your creditworthiness.
That said, some banks do a soft pull of your credit report, which means they look at it but it does not affect your credit score. A soft pull is invisible to lenders and does not lower your score. A few banks may do a hard pull (the kind that does affect your score), but this is uncommon for checking accounts and usually only happens if you are also opening a credit product like a credit card or loan at the same time.
Key Takeaways
- Banks check ChexSystems for checking accounts, not your credit score, because they care about your banking history rather than your credit history.
- A soft pull of your credit report does not lower your score and is used by some banks to verify your identity or assess risk.
- A hard pull, which does lower your score, is rare for checking accounts alone and usually only happens when you explore for credit products simultaneously.
- Having a low credit score will not stop you from opening a checking account at most banks.
- If you have been reported to ChexSystems for unpaid fees or fraud, you may face difficulty opening an account even with good credit.
What ChexSystems is and why banks use it
ChexSystems is a database that banks use to check your banking history. It tracks things like bounced checks, accounts closed due to unpaid fees, suspicious activity, and fraud. When you explore for a checking account, the bank sends a request to ChexSystems to see if you have a record there. If you do not, you are usually approved. If you do, the bank may deny you or ask you to pay back what you owe before opening an account.
ChexSystems is separate from credit reporting agencies like Equifax, Experian, and TransUnion. Your credit score does not appear in ChexSystems, and ChexSystems records do not appear on your credit report. Banks use ChexSystems because it tells them whether you have been responsible with bank accounts in the past — something your credit score does not measure. You can have excellent credit and still be denied for a checking account if you owe a bank money, or you can have poor credit and be approved for a checking account because your banking history is clean.
When banks do check your credit score
Banks may do a soft pull of your credit report when you open a checking account, but this does not lower your score. A soft pull is a background check that lenders can see only if they look at your full credit file — it does not show up as an inquiry on your credit report. Banks use soft pulls to verify your identity, check for fraud, or get a general sense of your financial history. Since a soft pull does not affect your score, it does not matter whether the bank does one or not.
A hard pull, which does lower your score by a few points, is rare for checking accounts. Banks usually only do a hard pull if you are opening a credit product at the same time, such as a credit card, overdraft protection line, or personal loan. If you are opening only a checking account, ask the bank whether they will do a hard pull. If they say yes, you can decline and find a bank that does not, since most do not require it.
Banks that may check credit for checking accounts
Most large national banks — including Chase, Bank of America, Wells Fargo, and Citibank — do not check your credit score for a checking account. They check ChexSystems instead. However, some smaller banks and credit unions may do a soft pull of your credit report as part of their verification process. This soft pull does not lower your score, so it does not matter for your credit history.
Online banks like Chime, Ally, and Charles Schwab also typically do not check your credit score for checking accounts. If you are concerned about a hard pull, you can call the bank before you explore and ask what they check. Most banks will tell you directly whether they pull credit, and if they do, whether it is a soft or hard pull.
What happens if you have a low credit score
A low credit score will not prevent you from opening a checking account at most banks. Banks care about your banking history (ChexSystems), not your credit score, when deciding whether to open a checking account. You can have a credit score of 500 and still be approved for a checking account as long as you have not been reported to ChexSystems for unpaid fees, bounced checks, or fraud.
If you have been reported to ChexSystems, you have a few options. You can pay back what you owe to the bank that reported you, and after you do, you can ask them to remove the report. You can also look for banks that offer second-chance checking accounts, which are designed for people with ChexSystems records. These accounts may have higher fees or lower limits, but they let you rebuild your banking history.
How to check your own ChexSystems record
You can request your ChexSystems report for free once a year. Go to the ChexSystems website and request your report, or call them at 1-800-428-9623. You will need to provide your name, address, date of birth, and Social Security number. ChexSystems will mail your report to you, usually within two weeks.
When you get your report, check it for errors. If something is wrong — for example, if a bank reported a fee you already paid — you can dispute it with ChexSystems. ChexSystems has 30 days to investigate your dispute. If they find the report was wrong, they will remove it from your record. If you find an error, fix it before you explore for a checking account, because banks will see the error and may deny you.
Soft pull versus hard pull: what the difference means for you
A soft pull is a background check that does not lower your credit score. It does not show up as an inquiry on your credit report, and other lenders cannot see it. Banks use soft pulls to verify your identity or check for fraud. Since a soft pull does not affect your score, it does not matter whether a bank does one when you open a checking account.
A hard pull is a formal credit inquiry that lowers your score by a few points and shows up on your credit report. Hard pulls are visible to other lenders and can affect your ability to get loans or credit cards in the short term. Banks rarely do hard pulls for checking accounts alone. If a bank tells you they will do a hard pull for a checking account, you can ask them not to, or you can find a different bank that does not require it.
Frequently Asked Questions
Will opening a checking account hurt my credit score?
Opening a checking account will not hurt your credit score. Banks do not check your credit score for checking accounts, and even if they do a soft pull, it does not lower your score. A hard pull, which does lower your score, is rare for checking accounts and usually only happens if you are also opening a credit product.
Can I open a checking account if I have bad credit?
Yes. Banks check your banking history (ChexSystems), not your credit score, for checking accounts. You can have a low credit score and still be approved for a checking account as long as you have not been reported to ChexSystems for unpaid fees or fraud.
What is the difference between ChexSystems and my credit score?
ChexSystems tracks your banking history — bounced checks, closed accounts, and fraud. Your credit score tracks your borrowing history — loans, credit cards, and payments. Banks use ChexSystems for checking accounts and your credit score for loans and credit cards. The two are separate.
How do I know if a bank will do a hard pull on my credit?
Call the bank before you explore and ask what they check for a checking account. Most banks will tell you whether they pull credit and whether it is a soft or hard pull. If they say they do a hard pull, you can find a different bank that does not require it.
Can I remove something from my ChexSystems record?
If you paid back what you owed, you can ask the bank that reported you to remove the report. If the report is wrong, you can dispute it with ChexSystems within 30 days. ChexSystems will investigate and remove the report if they find it was inaccurate.