Credit checks are standard when you apply for a loan, but they’re not typical with bank accounts. If a bank does check your credit when you apply for a deposit account, it’s usually to verify your identity, but they’re more likely to use a bureau called ChexSystems to view your banking history.
Do banks check your credit?
In general, banks don’t check your FICO or VantageScore when you apply for a typical deposit account, like a checking or savings account. FICO and VantageScore credit scores are used to gauge your ability to repay a loan, and since deposit accounts aren’t a form of credit, there’s no need to review your credit score.
However, when you apply for a bank account, the bank or credit union will likely review your ChexSystems report before it approves or denies your application.
ChexSystems is a specialty reporting agency similar to Experian or TransUnion. But unlike the three main credit bureaus, ChexSystems collects information about your banking history and typically stores it for up to five years.
If you have a history of unresolved overdraft fees, negative balances or reports of fraud on your ChexSystems report, the bank may deny your application.
What cards can I get with a bad banking history?
If poor banking history is getting in the way of account approval, you can check out these two options:
- Prepaid debit cards
- Second-chance bank accounts
Prepaid debit cards aren’t tied to a deposit account — you just have to load the card with cash. There’s no formal application process for these cards, and you can purchase them at convenience or grocery stores. Prepaid cards don’t involve a credit check or opening deposit in most cases. However, they often have a ton of fees such as reload fees, inactivity fees, activation fees or even monthly fees.
Second-chance bank accounts are accounts where the bank either doesn’t review your ChexSystems report when you apply or is willing to approve you despite a rocky history. Second-chance accounts function as regular deposit accounts and come with typical perks like direct deposit, checks, ATM access and so on. However, some second-chance checking accounts have monthly fees.
Compare 3 top bank accounts with no credit check
If your banking history is less than stellar, there are a few banks that won’t review your ChexSystems report when you apply. Additionally, there are plently of free checking accounts with no credit check and no deposit.
Chime® Checking Account
Chime® Checking Account
Chime is a fintech with banking partners. Applying for the Chime Checking Account doesn’t involve a ChexSystems review, and there’s no credit check. The account features no monthly fees or opening deposit requirements and offers the overdraft protection service SpotMe®. With the checking account, you can open the Chime savings account with 2.00% Annual Percentage Yield (APY) or consider the Chime Secured Credit Builder Visa® Credit Card for credit building services. But Chime doesn’t support joint accounts or wire transfers.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
Go to site
Read review
verified_user FDIC Insured
Chase Secure Banking℠
Chase Secure Banking℠
New Chase checking customers enjoy a $100 bonus, when you open a new Chase Secure Banking account and complete 10 qualifying transactions within 60 days of coupon enrolment.
If you’d rather get a second-chance account with a traditional bank, consider the Chase Secure Banking account. This checking account is designed for second chances, skips the ChexSystems review and has no credit check. Chase also boasts one of the largest branch networks in the US, which is great if you prefer in-person support. However, while there’s no minimum opening deposit requirement, it has a $4.95 monthly fee, doesn’t allow overdrafts and doesn’t have checkwriting privileges.
| Fee | $4.95 per month |
|---|---|
| Minimum deposit to open | $0 |
| Fee | $4.95 per month |
|---|---|
| Minimum deposit to open | $0 |
Go to site
Read review
verified_user FDIC Insured
Varo bank account
Varo
Existing and new customers get a $25 referral bonus when signing up for a Varo Bank account. T&C apply.
Varo is an online bank. It doesn’t use ChexSystems to review your banking history or perform a credit check when you apply for an account. Both its checking and savings accounts don’t have any monthly fees, but to get the savings account, you need the checking account. The Varo bank account comes with up to 6% cashback rewards on top brands, no foreign transaction fees, early paycheck deposit, no opening deposit requirement and no minimum balance requirements. The savings account boasts a high 5% APY on balances up to $5,000 if you set up direct deposit and deposit at least $1,000 per month. But Varo’s downside is that it’s a completely online bank, so your customer support options are limited and there’s no physical branch access.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
What if I’m still denied a bank account?
If you’ve applied for second-chance accounts that require no ChexSystems review or credit check, you may have to look at your denial letter. Banks are required to tell you why you were denied a bank account.
Typical denial reasons can include:
- Negative history with the bank, such as multiple overdrafts or unresolved charges
- Suspected fraud or cases of identity theft
- Inaccurate or incomplete application
Bottom line
It can be tricky to get approved for a bank account if your banking history isn’t ideal. However, certain banks and credit unions skip the credit check process and don’t review your ChexSystems history. And if that still isn’t an option for you, prepaid debit cards are a solid alternative.
If you don’t need a second-chance bank account, consider the best checking accounts overall. On the flip side, if you want to improve your credit score, there are prepaid credit cards, also called debit-credit cards, that can build credit history and usually skip the credit check.
