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.
Capital One 360 Checking
An interest-bearing checking account with flexible overdraft options and international access.
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.
If poor banking history is getting in the way of account approval, you can check out these two options:
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. Here are some of the best:
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:
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.
If you set up a Varo Checking account through Finder, you could earn a $300 digital Visa card—just for becoming a new customer and following a few simple steps. Offer is valid for a limited time only.
Finder $300 Varo Promotion – Terms and Conditions
Bank of America has a few bonuses for its checking accounts, but both have some requirements you need to meet.
U.S. Bank usually has some bank account bonuses on the table; compare the most recent offers up for grabs.
Discover only offers a bonus on its savings account, and it has a high deposit requirement. See how to get it here.
Upgrade has had bonus offers in the past, but there aren’t any active offers at this time. Compare other bonus offers.
Earn $25 with Varo by referring a friend. See the fine print on how to earn this bonus here.
Close alternatives to Varo include Chime, SoFi, Revolut, Current and more. See how these top alternative banks compare.
Top online banks like Chime include SoFi, Revolut, Varo, Current, Capital One, Step, Mine (formerly Fizz) and more. See how these Chime alternatives compare.
A mobile-only account to make banking more convenient.
