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
Identity insurance
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
Credit unions and banks do not require a hard credit pull to open a new account, and a soft credit pull has no impact on your score. All you need to open a checking or savings account is a photo ID, your Social Security Number, proof of your address, and money for an initial deposit.
Do banks check your credit score when opening a checking account? ›
Unlike credit card applications or loans, opening a checking account usually doesn't involve a hard inquiry into your credit history, which can temporarily lower your credit score. However, managing your checking account responsibly is essential to avoid any possible impact on your credit score.
Do banks do a credit check when you open a savings account? ›
Banks don't look at your credit score when you open a checking and/or savings account, but they may screen your banking history.
How do banks do credit check? ›
A credit check happens during the home loan application process – with the applicant's consent, of cause. The check is done in real-time through a credit bureau, which gives the lender a credit report on the home loan applicant.
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.
Can you open a checking account with bad credit? ›
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.
Why can't I get approved for 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.
What will fail a credit check? ›
Lenders like to see evidence that you've successfully repaid credit before. If you haven't used credit before, or if you're new to the country, there might not be enough data for lenders to approve you. You have late or missed payments, defaults, or county court judgments in your credit history.
Is it true that after 7 years your credit is clear? ›
In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.
What do banks look at for credit score? ›
For the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.
- Key takeaways.
- What are the easiest bank accounts to open online?
- Discover: Best for getting cash back on purchases.
- SoFi Checking and Savings: Best for high APY.
- U.S. Bank: Best mobile app.
- Truist: Best for no overdraft fees.
- Bank of America: Best for flexible banking.
- Chime®: Best for bad credit.
When you apply for a new bank account, the bank or financial institution in question can request a copy of your ChexSystems report. It can then use this information to determine whether to approve you for a new account.
What bank does not do a credit check to open an account? ›
Compare the best banks with no credit check
| Bank | Best for | Minimum opening deposit |
|---|
| Truist | No overdraft fees | $50 |
| Bank of America | In-person banking | $100 4 |
| Chime® 5 | Improving credit | None |
| Varo | Cash advances | None |
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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.
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.
