Can I open a savings account if I have bad credit?
While poor credit shouldn't be a barrier to opening a savings account, it still pays to work on boosting your score so you're able to get a loan the next time you need one. In addition to paying bills on time, a great way to bump up your credit score is to chip away at some of your existing credit card debt.
Many financial institutions, including traditional banks, online banks and credit unions, offer accounts with flexible requirements for folks who've had money trouble in the past. Namely, they don't use ChexSystems to screen your banking history.
Bank accounts for poor or no credit history
Basic bank accounts give you a place to store and deposit money, pay bills and use online banking - even if you have poor or no credit history.
Don't worry—while it can be more difficult, it is not impossible to get approved for a new bank account with bad credit. A bad credit score is considered a VantageScore® of 600 or lower and a FICO® score of 670 or lower.
Just as an application for a credit card might not be approved, a bank or credit union could deny an account application. If this happens to you, be aware that you have other options.
Such negative activities that show up on your report and hurt your approval chances include bouncing checks, leaving an overdraft balance unpaid, abusing a debit card or applying for too many accounts in a short period of time, according to credit bureau Experian.
Banks don't look at your credit score when you open a checking and/or savings account, but they may screen your banking history.
Although typically banks don't need to review credit reports when someone opens a checking or savings account, there are some exceptions where it may be necessary. Financial institutions may check your credit if you're enrolling in overdraft protection, according to TransUnion, one of the major credit bureaus.
You can be denied a checking account for a number of reasons, such as negative marks in your banking history, suspicions of fraud or an inability to verify your identity.
You don't need a certain credit score to open a Chase checking or savings account, as there is no credit score requirement. Chase does not require a credit score for these accounts because they are deposit accounts, not loans or lines of credit.
Can I open a Bank of America account with bad credit?
You don't need a certain credit score to open a Bank of America checking or savings account, as there is no credit score requirement. Bank of America does not require a credit score for these accounts because they are deposit accounts, not loans or lines of credit.
| Account | Approximate time to complete application | Monthly fees |
|---|---|---|
| Capital One 360 Checking Account: Best for ATMs | 3 to 4 minutes | $0 |
| Ally Bank Spending Account: Best for Automatic Savings | 2 to 3 minutes | $0 |
| Revolut: Best All-In-One App | 5 minutes | $0 to $16.99 |
| Bank | Best for | Monthly fees |
|---|---|---|
| Chime® 3 | Ease of use | None |
| Varo | Cash advances | None |
| Current | Credit building | No membership fees |
| GO2bank | High rewards | $5/month unless enrolled in direct deposit |
Savings Bank account shall not be opened in the name of the following: a. Any trading or business concern, whether such concern is proprietorship, partnership, company or association.
Chime Second Chance Banking
Chime is an online-only fintech company that offers banking services through The Bancorp Bank, N.A. or Stride Bank, N.A. Its Second Chance Banking option boasts no monthly fees and no credit or ChexSystems check.
- Interest Rates Can Vary. Interest rates for both traditional and high-yield savings accounts can vary along with the federal funds rate, the benchmark interest rate set by the Federal Reserve. ...
- May Have Minimum Balance Requirements. ...
- May Charge Fees. ...
- Interest Is Taxable.
- Applying for a different current account. Each bank has different eligibility rules, meaning you may be able to get an account elsewhere. ...
- Getting a basic bank account. ...
- Considering a prepaid card. ...
- Talking to a credit union.
How are savings accounts approved? When you apply to open a savings account, most financial institutions will run a soft check on you. This is why some people think their credit score is affected or considered. But the purpose of this credit check is purely to verify your identity.
There are federally-regulated standards to limit consumers to making only six withdrawals or transactions from their savings account every month. In addition, savings accounts don't usually come with checks or debit cards, though they still have a routing number that you can use to send or receive money electronically.
Most of the time, opening a checking account does not affect your credit score. If the bank pulls your credit before opening your account, it will likely make a soft inquiry. The bank could make a hard inquiry, which would lower your score slightly, but that's unusual.
Does PNC bank do a credit check to open a checking account?
You don't need a certain credit score to open a PNC checking, savings or money market account, as there is no credit score requirement. PNC does not require a credit score for these accounts because they are deposit accounts, not loans or lines of credit.
- Your past financial behavior put you on a no-account list. ...
- You don't trust banks. ...
- You're worried about meeting minimum balance requirements. ...
- You're aiming to avoid fees. ...
- You're trying to avoid debt collectors. ...
- You're young.
When you apply for a new account, many banks use ChexSystems to see if a previous bank has flagged you for unpaid balances such as overdraft fees. If you are in ChexSystems, it can impact their decision to approve you for an account.
- Request a copy of your ChexSystem report. ...
- Dispute mistakes or fraudulent activity on your report. ...
- Pay off your balances. ...
- Ask creditors to remove information from your ChexSystems report. ...
- Wait for items to fall off your report.
Similarly, people with a bad ChexSystems Consumer Score can still apply for a checking account. Many banks offer “second chance” checking accounts that give people with lousy banking history the chance to make good. You should also check out your local credit union, as many of them offer second chance checking as well.
