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.
Varo bank account
Varo
9.6
Excellent
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
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.
Pros
Doesn&rsquo
t use ChexSystems or check credit score
Up to 6% cash back with checking
Up to 5% APY on savings
No monthly fees or balance requirements
No opening deposit required
Cons
No physical branches
Best savings APY has deposit requirements
No checks or wire transfers
Annual Percentage Yield (APY)
N/A
Intro or bonus offer
Existing and new customers get a $25 referral bonus when signing up for a Varo Bank account. T&C apply.
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
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.
Pros
Does not review ChexSystems or credit score
No monthly fees
Checking unlocks optional 2.00% APY savings
Optional credit-building card and overdraft protection
Cons
No joint accounts
No wire transfers
Online only
Annual Percentage Yield (APY)
N/A
Rewards
Cash back offers on everyday purchases through the app
Fee
$0 per month
Nonsufficient funds fee
$0
ATM transaction fee
$0
Foreign transaction fee
0%
Overdraft fee
$0
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC. ATMs: Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Deposit: Once the retailer accepts your cash, the funds will be transferred to your Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. Mobile Deposit: Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member's direct deposit enrollment status. Chime Savings Account: Chime Checking Account is required to be eligible for a Savings Account. APY: The Annual Percentage Yield (“APY”) is variable and may change at any time. The disclosed APY is accurate as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest. Get Paid Early: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date. Credit Builder: To apply for Credit Builder, you must have an active Chime® Checking Account. SpotMe: Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
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
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.
Pros
No ChexSystems review or credit check
$0 overdraft fees
No minimum deposit requirement
Largest branch network in US
Cons
$4.95 monthly fee
No checkwriting
Annual Percentage Yield (APY)
N/A
Intro or bonus offer
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’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
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.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 429 Finder guides across topics including:
SoFi Checking and Savings is our top pick for the best joint bank account. Other top banks include Relay, Zeta, Ivella, Ally, Discover and Quontic.
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