Can I open a bank account with bad or no credit in Canada?

Canadian banks usually perform a credit check to verify your identity when opening an account. But there’s no minimum credit score, so you can open a bank account even with bad or no credit.

Can I get a bank account without a credit check?

Regardless of whether you have bad or good credit, you can still open a bank account in Canada. But banks in Canada typically run a soft credit check when you open an account to verify your identity. Unlike a hard credit check, this will not hurt your credit score.

Some banks run a hard credit check to see if you qualify for overdraft protection, reduce the holding period on your deposits and other reasons for which a risk assessment may be required. If you don’t consent to this, you probably won’t get overdraft protection.

How to open a chequing account if you have bad credit

The main reason banks run a credit check when opening an account is to verify your identity, not check your credit score. But your credit score and debt history will be checked if you want to add overdraft protection to your account.

Whether you have good or bad credit, here are your chequing account options in Canada:

Traditional chequing accounts

If you’re more into old school banking and prefer to manage your funds in-person at a branch or via desktop app, a chequing account offered by a major, established bank might be what you need.

Banks offer basic and upgraded (or premium) chequing accounts. Basic accounts come with the lowest monthly fees and usually include little else than a debit card and a few free transactions a month as well as with access to online and mobile banking.

Designed for active spenders, premium chequing accounts typically include unlimited free transactions and extra perks like free cheques, waived monthly fees on additional accounts, free withdrawals from out-of-network ATMs and discounted safety deposit boxes. But all these benefits come with a higher monthly fee.

Compare chequing accounts

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BMO Performance Chequing Account

unlimited
Free Transactions

$0
e-Transfer Fee

$16.95
Monthly Account Fee

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• Pros + Cons
• More Details

The BMO Performance Chequing Account comes with unlimited free transactions and Interac e-Transfers. Earn $350 with a Performance Chequing Account. Plus, get an additional $50 when you add a second member and make it a BMO Family Bundle. Valid until April 30, 2023. You can also earn a 5% bonus interest rate when you add a Savings Amplifier Account.

• Unlimited monthly transactions
• Interac e-Transfers
• $40 fee rebate on the BMO Mastercard annual fee
• BMO will reverse the first accidental fee charged to this account
• Up to 20 accounts can be included in the BMO Family Bundle
• Earn up to $400 if you open a BMO Performance Chequing Account and meet eligibility criteria, earn 5% on all deposits until April 2023, when you add a no-fee BMO Savings Amplifier Account

• Monthly fee of $16.95
• You won't earn any interest on the money in your account.

Min. Age	18
Min. Age Teen Account	12
Account Fee	$16.95
Youth Account Fee	$0
# of Accounts Included	20
Overdraft Fee	$5
ATM Out-of-Network Fee	$2
U.S. ATM Fee	$5
International ATM Fee	$5

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Coast Capital Free Chequing, Free Debit, and More Account

unlimited
Free Transactions

$1.50
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

The Coast Capital Free Chequing, Free Debit, and More Account comes with a $0 monthly fee, no minimum balance requirement and unlimited transactions. But Interac e-Transfers cost $1.50 each.

• No monthly fee
• Unlimited free transactions
• No minimum balance required
• Deposit cheques on the app from your phone
• Withdraw money free of charge from 4,000+ ATMs across Canada.

• e-transfers cost $1.50 each
• Only available to BC residents.

Min. Age	18
Account Fee	$0
Overdraft Fee	$5
ATM Out-of-Network Fee	$10
U.S. ATM Fee	$2.50
International ATM Fee	$5
Dormancy Fee	$1.50

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Scotiabank Basic Plus Bank Account

25/month
Free Transactions

$0
e-Transfer Fee

$11.95
Monthly Account Fee

• Info
• Pros + Cons
• More Details

The Scotiabank Basic Plus Bank Account comes with 25/month free transactions and $0 Interac e-Transfers. The monthly account fee is $11.95, but this is waived with a minimum balance of $3,000+. Choose between the SCENE and Scotia Rewards reward programs, and earn rewards points on your purchases.

• $0 e-Transfers
• Access to Scotiabank's basic account features including free credit score reports.

• Limited monthly transactions
• Monthly fee
• No welcome offer.

Min. Age	16
Account Fee	$11.95
Overdraft Fee	$5
ATM Out-of-Network Fee	$2
U.S. ATM Fee	$3
International ATM Fee	$5

Digital banks

Online banks with well-designed apps and low fees are becoming more common in Canada. EQ Bank and Neo Financial are popular options, and both are federally regulated just like the Big Banks. Backed by CIBC, Simplii Financial is a great option if you need to send international money transfers, as it comes with $0 transfer fees.

The benefits of opening an account with a digital bank include:

• Low fees. Without the overhead costs of traditional banks, online banks can afford to slash fees. Many digital banks offer accounts with no monthly fees and unlimited free transactions.
• Great mobile apps. Big Banks have often lagged behind digital banks when it comes to mobile app design. Apps like Neo Financial get high ratings for being easy to use, while other apps like Tangerine Mobile Banking come with convenient features like fingerprint login. Learn more in our guide to best money management and investing apps.
• Budgeting features. Many digital banking apps automatically categorize your spending, telling you where your money is going.

You can’t go to a branch for in-person service. But many online banks partner with major banks for some tasks, like depositing cash via ATM. Scotiabank, which owns Tangerine, lets Tangerine customers use Scotiabank ATMs at no extra cost. Similarly, CIBC owns Simplii Financial, so Simplii customers can use CIBC ATMs for free.

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Name	Product	Promo Rate	Regular Interest Rate	Monthly Account Fee	Transaction Fee	e-Transfer Fee	CDIC Insured	Offer
Neo Money Account		N/A	2.25%	$0	$0	$0		Open an account and get a $5 bonus.	Go to site View details	Compare	loading Fetching your data...
EQ Bank Savings Plus Account		N/A	2.50%	$0	$0	$0			Go to site View details	Compare	loading Fetching your data...
Simplii High Interest Savings Account		5.25% until April 30	0.40%	$0	$0	$0			Go to site View details	Compare	loading Fetching your data...
KOHO Save		N/A	2.00%	$0	$0	$0		Use promo code FINDERCODE and get a $20 cash bonus when you make your first purchase within 30 days.	Go to site View details	Compare	loading Fetching your data...

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Prepaid cards

Some financial institutions like KOHO and Mydoh compete with digital banks, but aren’t technically banks. These companies offer prepaid cards and accounts for everyday spending. Often, you can get rewards like cashback on your purchases. You can’t go to a branch for in person service, but you can manage your funds via mobile app.

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Name	Product	Monthly Fee	Cost per transaction	Foreign transaction fee	Rewards	Feature
OFFER KOHO Easy Prepaid Mastercard KOHO Easy Prepaid Mastercard	OFFER	$0	$0	1.5%	1% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.	Earn 1% cash back on groceries, billing and services. Plus, earn 0.5% interest on your entire balance.	Go to site More Info	Compare	loading Fetching your data...
EQ Bank Card EQ Bank Card		$0	$0	0%	2.50% interest, 0.5% cash back		Get 2.50% interest on your money and get 0.5% CashBack on every purchase.	Go to site More Info	Compare	loading Fetching your data...
Mydoh Smart Cash Card Mydoh Smart Cash Card		$2.99	$0	2.5%	1-month free trial + $15		Teach your kids smart spending and independence. Set up tasks, pay allowances and monitor spending activity. Use promo code SMART15 to get $15 deposited into your account.	Go to site More Info	Compare	loading Fetching your data...
CIBC AC Conversion Visa Prepaid Card CIBC AC Conversion Visa Prepaid Card		$0	$0	0%	1% cash back		Load up to 10 different currencies with 1 card, earn 1% cash back on all spend and avoid fees.	Go to site More Info	Compare	loading Fetching your data...
OFFER KOHO Extra Prepaid Card KOHO Extra Prepaid Card	OFFER	$9/month or $84 annually	$0	0%	Up to 2% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.	Earn 2% instant cash back on groceries, eating and drinking and bills and services, and 0.5% cash back on all other purchases. Plus, earn 2.00% interest on your entire balance.	Go to site More Info	Compare	loading Fetching your data...
KOHO Essential Prepaid Card KOHO Essential Prepaid Card		$4/month or $48 annually	$0	1.5%	Up to 1% cash back	Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.	Earn 1% cashback on groceries, bills and services, and eating & drinking – and collect 0.25% on everything else. Plus, earn 1.50% interest on your card balace.	Go to site More Info	Compare	loading Fetching your data...

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How much do chequing accounts cost?

Digital bank accounts and prepaid cards often come with no monthly fees. Chequing accounts offered by major banks usually come with monthly fees ranging from around $4 to $30, but this may be waivable if you keep minimum monthly balance or if you qualify for a discount (often available for seniors, students and newcomers to Canada).

Banking dos and don’ts if you have bad credit

The bottom line

In Canada, there’s no credit score requirement for opening a bank account. But most banks conduct a soft credit check to verify your identity when you open an account, so it’s difficult to avoid a credit check altogether.

Your chequing account options are the same whether you have bad or good credit. Traditional banks offer basic and premium chequing accounts, while digital banks and prepaid cards usually offer low fees and easy-to-use apps.

Frequently asked questions

• Can I get overdraft protection if I have bad credit?

  You likely won't qualify for overdraft protection if you have bad credit, because banks typically conduct a credit check to determine you're eligibility. Instead, consider budgeting a small amount for unexpected costs, and make sure this amount stays in your account at all times.

• What information do I need to open a bank account if I have bad credit?

  The requirements for opening a bank account in Canada are the same regardless of whether you have good or bad credit. You need to provide info like your name, contact details, your reason for opening an account and your employment status. You'll also have to provide a copy of ID or consent to a soft credit check to verify your identity.

• Can I open a joint account if I have bad credit?

  Yes, you can open a joint account even if you have bad credit. To open a joint account, you'll likely need to visit a bank branch in person, and both account holders will need to present ID.