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 open a bank account with bad credit or no credit?
Yes, regardless of whether you have bad credit, no credit history or a good credit score, you can still open a bank account in Canada. Banks in Canada do not require hard credit checks in order to open a bank account.
In fact, the Government of Canada has mandated that every Canadian has the right to open a bank account — including chequing and savings accounts — even if you have been in bankruptcy.
Online bank accounts for bad credit and no credit check
The following bank accounts — including some free options — allow people with bad credit to sign up and do not do hard credit checks when opening an account:
The Simplii No Fee Chequing Account comes with no monthly account fee, no transaction fees, no e-Transfer fees, no minimum deposit requirements and a chance to earn interest on your account balance—plus a debit card.
If you're looking to save and spend, the EQ Bank Personal Account is a powerful hybrid savings and chequing account option. Earn interest on your savings and grow your money faster.
The BMO Performance Chequing Account comes with unlimited free transactions and Interac e-Transfers. Get up to $700 in cash bonuses. Earn $450 when you open a new BMO Performance Chequing Account, $200 (plus a 5.00% promo interest rate) when you open a Savings Amplifier Account and $50 when you make it a BMO Family Bundle. Valid until March 3, 2025.
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
Get up to $700 in cash bonuses. Earn $450 when you open a new BMO Performance Chequing Account, $200 (plus a 5.00% promo interest rate) when you open a Savings Amplifier Account and $50 when you make it a BMO Family Bundle. Valid until March 3, 2025.
Monthly fee of $17.95
You won't earn any interest on the money in your account.
The Scotiabank Preferred Package comes with $0 transactions, $0 Interac e-Transfers and a generous welcome bonus. The monthly account fee is $16.95, but this is waived with a minimum balance of $4,000+. Earn up to 4.95% interest for 3 months on your MomentumPLUS Savings Account.
The KOHO Essential Plan, a spending and savings account, has a competitive savings rate. You can also get a prepaid card and earn cashback on your purchases. Earn 2.5% interest on your balance, and 1% cash back on groceries, transportation, food, and drink purchases.
$4 account fee
$0 transactions
$0 Interac eTransfers
Earn cashback on purchases
Earn 2.5% interest
KOHO is an online only digital bank
To earn higher rates of interest and cashback, you'll need to select a higher monthly fee plan
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.
The RBC Signature No Limit Banking Account comes with unlimited transactions and $0 Interac e-Transfers. Save 3¢/L on gas by linking your RBC debit card with your Petro-Points card. Get an Apple Watch when you open your first RBC Signature No Limit Banking Account and complete two of the qualifying criteria tasks. Apply by June 2, 2025. The monthly account fee is $16.95, but this can be waived if you meet the requirements.
Do banks do a credit check when you open an account?
Banks will typically run a soft credit check when you open an account, but only to verify your identity. Your credit score will not impact the results of a soft credit check. And unlike a hard credit check, a soft credit check will not hurt your credit score.
After you’ve opened an account, some banks will 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. Explore new bank account offers and promotions.
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:
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.
Traditional banks typically run a soft credit check when you apply to open an account. The reason these banks run a soft credit check is to simply verify your identity. It does not negatively impact your credit score.
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.
Online banks
Digital banks with well-designed apps and low fees are becoming more common in Canada. A notable perk of online banks is that they tend to offer free accounts whether or not you have bad credit or no credit history at all.
EQ Bank and Neo Financial are popular options, and both are federally regulated just like the Big Banks. Backed by CIBC, Simplii Financial is another 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.
Compare online bank accounts for bad or good credit scores
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Finder Score for savings accounts
To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 50+ savings accounts and 25+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
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.
Compare prepaid cards
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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
Do
Keep an eye on your spending. Whether you get instant notifications on your phone or simply check your statement regularly, it’s a good idea to know exactly how much you’re spending each month.
Pay your bills & debts. Improve your credit score by paying your bills on time and allocating as much money as you can to debt repayment.
Make a budget and stick to it. If your online or mobile bank app offers budgeting features or an automatic savings plan, use this to stay on track.
Check your credit score regularly. Access your credit score from TransUnion or Equifax, Canada’s main credit bureaus. Keep an eye on your debts and repayment history, and report any errors.
Don’t
Use an overdraft. Overdraft funds come with an extra cost (interest and ongoing fees), and paying it back won’t help your credit score.
Borrow more if you can avoid it. Taking out loans will worsen your debt-to-income ratio, hurt your credit score and add monthly repayments to your budget. Avoid this option if you can.
Miss payments. Missed and late payments will further damage your credit score.
Most Canadians spend more than they save
Almost 3 out of 4 Canadians (73%) spend more than they save each month, according to survey data from the Finder: Consumer Sentiment Survey Q2 2023.
Additionally, Canadians are increasingly turning to online institutions for their banking needs. The same survey showed that 7.18% of respondents planned on opening a digital bank account between April and June 2023—up from 3.59% of respondents who planned to open a digital bank account between January and March 2023.
Bottom line
In Canada, there’s no credit score requirement for opening a bank account, so you can open a bank account with bad credit or no credit history. But most banks conduct a soft credit check to verify your identity when opening 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.
FAQs about bank accounts for bad credit and no 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.
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 valid ID, your 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.
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.
Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio
Earn a little interest without limiting your transactions. But don’t expect to replace your high-interest savings account.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
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