Most banks do not check your credit to open a savings account
A savings account is different from a loan or credit card. The bank is not lending you money — you are depositing your own money with them. Because there is no credit risk to the bank, they have no reason to pull your credit report. A hard credit check (the kind that shows up on your credit history) almost never happens for a savings account.
What banks do check is something called ChexSystems, a banking history database separate from credit reporting. This system tracks whether you have had problems with bank accounts in the past — things like overdrafts you did not pay back, writing bad checks, or fraud. A ChexSystems check does not affect your credit score and does not show up on your credit report.
Some banks also run a soft credit check, which is a quick look at your credit file that does not leave a mark. This is less common for savings accounts than for checking accounts, but it happens. A soft check does not lower your credit score and does not appear to other lenders.
Key Takeaways
- Banks use ChexSystems to check your banking history, not your credit report, when you open a savings account.
- A ChexSystems check does not affect your credit score and is not the same as a credit inquiry.
- If you have been denied a bank account before, you can request your ChexSystems report to see what is listed.
- Some banks will open a savings account for you even if you are on ChexSystems, though options may be more limited.
- Your credit score does not prevent you from opening a savings account at any mainstream bank.
What ChexSystems actually checks
ChexSystems is a private company that banks subscribe to in order to see your banking history. When you open a bank account, the bank sends information about you to ChexSystems, and ChexSystems tells the bank whether you have had problems with other banks before.
The report includes overdrafts that went unpaid, accounts closed by the bank due to misuse, fraud, or repeated NSF (non-sufficient funds) fees. It does not include your payment history on credit cards, loans, or any other credit product. It is purely about how you have handled bank accounts.
If you have never had a bank account before, or if your past accounts were in good standing, ChexSystems will show nothing against you. Most people are not on ChexSystems at all — the system only flags people who have had specific problems with banks.
When banks might decline a savings account
A bank can refuse to open a savings account for you, but credit score is almost never the reason. The actual reasons are usually: you are on ChexSystems with a serious issue, you cannot provide required identification, you are underage without a parent or guardian, or the bank suspects fraud based on the information you provide.
If you are on ChexSystems, you are not automatically locked out of banking. Many banks, including some large ones, will still open accounts for people with ChexSystems records. Online banks and credit unions are often more willing to work with people who have banking history issues than traditional brick-and-mortar banks.
Your credit score — whether it is 500 or 800 — does not disqualify you from opening a savings account anywhere. Banks understand that people with low credit scores still need a place to keep their money.
How to check your own ChexSystems report
You have the right to see what ChexSystems has on file about you, just as you can request your credit report. You can order your report directly from ChexSystems online, by phone, or by mail. The report is free once per year.
To request your report, go to chexsystems.com or call 1-800-428-9623. You will need to provide your name, address, date of birth, and Social Security number. ChexSystems will mail the report to you within a few days.
If you find errors on your ChexSystems report, you can dispute them directly with ChexSystems. You can also dispute the information with the bank that reported it. Errors do get corrected, but the process takes time — usually 30 to 60 days.
What happens if you are on ChexSystems
Being on ChexSystems does not mean you cannot open a savings account. It means some banks will decline you, but others will not. Your options narrow, but they do not disappear.
Credit unions often have more flexible policies than big banks. Online banks sometimes have lower thresholds for ChexSystems issues. Some banks offer second-chance checking and savings accounts specifically for people with banking history problems — these accounts may have higher fees or lower opening balances, but they exist.
The best approach is to call ahead. Tell the bank you are on ChexSystems and ask whether they will open an account for you. Some will say yes when ready. Others will ask what the issue was. Being honest about past problems is usually better than being declined and then trying somewhere else.
The difference between ChexSystems and credit checks
A credit check looks at your history with credit — credit cards, loans, payment history, debt. A ChexSystems check looks at your history with bank accounts. They are completely separate systems run by different companies and used for different purposes.
A hard credit check (the kind that lowers your score) happens when you explore for a loan or credit card. It does not happen for a savings account. A soft credit check might happen, but it does not affect your score and does not show up to other lenders.
If you have bad credit but a clean banking history, you will have no problem opening a savings account. If you have good credit but a bad ChexSystems record, some banks will still decline you. The two systems are independent.
What to bring when you open a savings account
Regardless of credit or ChexSystems, you will need to bring identification and proof of address. A driver's license or state ID card works for identification. For proof of address, bring a recent utility bill, lease, or bank statement with your name and current address on it.
You will also need your Social Security number. The bank uses this to verify your identity and to report interest you earn to the IRS. If you do not have a Social Security number, some banks can open accounts with an ITIN (Individual Taxpayer Identification Number) instead, but options are more limited.
Bring a small amount of money to open the account — usually $25 to $100, depending on the bank. Some banks have no minimum opening deposit for savings accounts, so ask before you go in.
Frequently Asked Questions
Will opening a savings account hurt my credit score?
No. Opening a savings account does not trigger a hard credit check and does not appear on your credit report. Even if the bank does a soft check, it does not lower your score. Your credit score is unaffected by savings accounts.
Can I open a savings account if I have been denied before?
Yes, if you were denied because of ChexSystems, you can still open an account elsewhere. Request your ChexSystems report first to see what is listed. Then call banks or credit unions that offer second-chance accounts and ask if they will work with your situation. Being upfront about why you were denied increases your chances.
What if I do not know whether I am on ChexSystems?
The only way to know for sure is to request your report from ChexSystems directly. It is free once per year. If you have had problems with a bank account in the past — overdrafts, fraud, or an account closed by the bank — you might be on ChexSystems. If your accounts were always in good standing, you probably are not.
Do online banks check ChexSystems?
Most do, but some are more lenient about what they find. Online banks often have lower overhead costs than brick-and-mortar banks, which means they can take on slightly more risk. If you are on ChexSystems, online banks are worth calling. They may say yes when a traditional bank says no.
Can I remove myself from ChexSystems?
You cannot remove yourself, but negative information does fall off over time. Most items stay on your ChexSystems report for five years. After that, they are removed automatically. You can also dispute inaccurate information and have it corrected or removed if the dispute is successful.