Can I get a bank account with little or poor credit history? | Guides (2024)

FAQs

Can I get a bank account with little or poor credit history? | Guides? ›

Banks and credit unions will not typically deny you for a checking account because of a bad credit score or poor credit history. In fact, many financial institutions will not review your consumer credit reports and credit scores at all when you apply for a new deposit account.

Having a poor credit score will not prevent you from opening a bank account. Your credit score is taken from information on your credit reports, documents that track your history as a borrower, and are compiled by the three major credit bureaus: Experian, TransUnion, and Equifax.

It is unlikely that you will be refused a basic bank account because of your credit rating. Although the bank may not be checking your credit score, they will still need to identify you with your ID and address and conduct fraud checks to make sure you are who you say you are.

A basic bank account is a current account for anyone who doesn't qualify for other accounts, say due to a poor credit history. Basic bank accounts don't offer any credit, such as an arranged overdraft, loans or credit cards.

Most banks don't pull a hard credit check to qualify you for a checking account. However, they might look into your ChexSystems report, a banking industry way of peering into an applicant's history. Certain negative items can disqualify you from opening a bank account.

Common reasons consumers are turned down for a bank account include a history of overdrafts, unpaid bank fees or suspected fraud. Applications can also be denied due to mistakes on one's checking account report. If you've been denied a bank account, ask the bank why this happened.

Instant account opening is easy with HDFC Bank. All you need is a working mobile number, Aadhaar number and a PAN number to open an account.

Why am I being refused a bank account? ›

If you're bankrupt or have a record of fraud, you will not usually be allowed to open a bank account. Also, you may be refused permission to open a current account if you have a poor credit rating. However, if you're bankrupt or have a poor credit rating, you may be able to open a basic bank account.

Both Wells Fargo and Bank of America can be good choices for low-income earners since the direct deposit minimums are not overly burdensome.

We chose fintech Chime's Checking Account®* as one of the best bank accounts for bad credit because it offers fee-free banking with easy-to-use mobile tools. You can apply for this account with no impact on your credit and no peek at your ChexSystems file, and it includes a host of helpful features.

Will you do a credit check? No, we don't carry out credit checks when you apply for a Chase account. However, we do use CRAs to make sure you pass fraud checks. Lenders won't see the info shared at that point, and it won't affect your credit score.

If you have a poor credit score, your bank could see you as higher risk, which can affect your eligibility for opening a new account. However, this score is just one of many other factors considered when you apply for a bank account.

To conclude

For those with damaged credit histories, basic bank accounts, internet banks, prepaid debit cards, and credit unions offer workable options.

You can be denied an account if you're in debt to another bank because of an overdrawn account or overdraw your account too often.

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.