Depending on company policy, a bank may or may not pull a credit report when you apply for a personal checking account. However, it's very probable that the bank will request a copy of your consumer banking report and consider your past banking issues. If you're concerned about the bank requesting either of these documents, ask which consumer reports it uses before you submit your application. Show
Consumer Banking RecordRather than run a credit check, many banks check your record with a consumer reporting service when you apply for a new checking account. If you were constantly overdrawn on your last account, your last bank might have reported your bad behavior to a consumer reporting service such as ChexSystems. ChexSystems receives reports from banks about risky activity like unpaid bank fees and bounced checks and compiles them into reports and scores similar to credit reports and scores. Banks use these reports to determine which customers seem too risky to take on. If your new bank finds that you have a record with ChexSystems, it may decline your application for a personal checking account. Hard Credit InquiriesSome, but not all, banks and credit unions perform a credit inquiry when you apply for a new bank account. This type of credit inquiry is referred to as "hard inquiry" or a "hard pull," because you're voluntarily allowing the credit check in the application process. The credit bureaus are suspicious of consumers who are constantly looking for new sources of credit, so a "hard inquiry" slightly decreases your credit score. However, as long as you're not applying for credit cards and bank accounts at a constant rate, it should have little effect on your overall score. Other ConsiderationsBy and large, your checking account activity doesn't affect your credit score. Banks don't report regular activities such as deposits, withdrawals, cashing and receiving checks to the credit bureaus. However, if you owe a sum of money to your bank and never pay up, it could affect your credit. If your bank doesn't think it will be able to collect from you, it may send your account to collections, which hurts both your credit score and your ChexSystems record. Do Your HomeworkDo some research before you apply for a checking account. Request a free copy of your credit report every year to ensure there's no negative information that could affect your checking application. You can contact ChexSystems and request a copy of any reports listed on your consumer file, just as you can contact the ordinary credit reporting bureaus. If you think either your credit report or your consumer banking report could negatively affect your checking application, consider applying for a second-chance bank account. These accounts are specifically designed for individuals who've had banking and credit problems in the past.
 Ziga Plahutar / Getty Images The simple answer to whether opening a checking account will hurt your credit score is: sometimes. It isn’t common for a new checking account to impact your credit score, but there are some exceptions. When you apply to open a checking account, your bank may check your credit score. Depending on how the credit pull is completed, the request may show up on your credit report as an inquiry. Understand the Application ProcessIf you’re concerned that a hard credit inquiry will lower your credit score, call the bank before applying. Ask about their process for approving a new checking account. If they mention a credit pull, ask if it’s a hard or soft inquiry. Hard and Soft InquiriesA hard inquiry is usually used by lenders. Your bank may use a hard pull when opening a checking account to approve you for overdraft protection. Some overdraft protection options are considered a line of credit. In addition to hard inquiries’ immediate effects on your credit, the bank may also report the use of the credit line to credit bureaus. A soft inquiry shows up on your credit report but has no negative impact on your score. This is because a soft pull is not tied to a potential loan or line of credit. Soft credit reports are viewed differently since there isn’t a chance that you have a new credit account in the process of opening. ChexSystemsBanks and credit unions also use ChexSystems to gain more insight into your past account use. This report provides information on your past account history, including:
It is rare to be declined a checking account. However, if you owe money to another bank, you’re more likely to be rejected. What You Need To Open a Checking AccountOnce you’re ready to open a checking account, you’ll need to have a few things handy. Expedite the account opening process by having everything ready when you apply. If the address listed on your account is different from the one on your driver’s license, the bank or credit union may request a document proving where you live. Banks and credit unions both require an opening deposit for your new account. The amount you need varies from bank to bank. If you open an account in-person, you can take cash. If you open one online, you’ll need a different bank account with a positive balance from which you can transfer your opening funds.
Benefits of a Checking AccountA checking account is a great way to manage your money, but if you manage your checking account right, you’ll see benefits beyond simply having a safe place to store your spending money. Build CreditWhen you first open a checking account, it won’t have much impact on your credit report, beyond a possible dip from the credit inquiry. But over time, your checking account is the foundation for a strong credit score. Maintaining the same account for a long period of time shows lenders that you’re reliable. Check Out Our Free Newsletters!Every day, get fresh ideas on how to save and make money and achieve your financial goals. Establish a Banking RelationshipWhen you open a checking account, you establish a relationship with a financial institution. This opens the door to additional financial products and services like:
Maintain Your Banking RelationshipTry not to bounce around from checking account to checking account. Banks often make appealing offers to entice you to switch. However, opening and closing accounts too frequently are red flags to lenders. If you do close a checking account, make sure you leave on good terms. Always pay off what you owe before you go. Any negative balances get reported to credit agencies. Other ConsiderationsMost banks offer bill pay through online banking. A unique feature to look for is integration with Zelle or PayPal. This allows you to quickly make person-to-person payments on the go. Do Checking Accounts Affect Credit Score in Other Ways?Once you open a checking account, dedicate yourself to managing it responsibly. Here are some smart steps to take:
While these steps don’t have an explicitly positive effect on your credit, they do help prevent negative marks. It’s smart to avoid doing something that could hurt your credit for years to come.
Monitor Your Credit ReportWhen you’re working hard to protect your credit score, be sure to monitor your report. How Often To CheckYou are legally entitled to download your free credit report from all three credit bureaus — TransUnion, Experian and Equifax — once per year. Set a calendar reminder to check your report at least once per year. You may consider reviewing the report more frequently if your lending activity is high or if you anticipate making a large purchase soon. Keep in mind that the information reported to each of the three credit reports may vary. Some financial institutions only report to one bureau. What To Look ForEnsure all information on your report is correct, including:
It’s also important to look at each hard and soft credit inquiry. Did you initiate the inquiries? If not, report them to the credit bureau along with any other discrepancies you identified. What banks do not require a credit check to open an account?Here are some second-chance checking accounts to consider.. Wells Fargo Opportunity Checking.. U.S. Bank Safe Debit Account.. United Bank Gateway Checking.. BancorpSouth Second Chance Checking.. Does opening a checking account affect your credit score?When you apply for a checking account, the bank might look at your credit report. Typically, it only makes a soft inquiry, which has no effect on your credit score. On occasion, however, a hard inquiry is used; while this can negatively affect your score, it is usually by no more than five points.
What is required when opening a checkings account?You'll need the following information: Your Social Security number. A valid, government-issued photo ID like a driver's license, passport or state or military ID. A minimum opening deposit of $25 to activate your account (once you've been approved).
Can you be denied opening a checking account?Opening a bank account is easier than applying for a credit card, but consumers should be aware that they can still be denied — likely because of negative actions found on their ChexSystems or Early Warning Services report.
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Does opening a checking account require a credit check
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