Do Banks Check Your Credit When Opening An Account

Ask the bank officer if the account requires a credit check.

Do banks check your credit when opening an account. Some banks but not all will request your credit report when you apply for a checking account. According to experian one of the three main credit bureaus banks and credit unions don t check your credit score when opening these two bank accounts. Banks and credit unions want to learn about your financial past before establishing an account with you. Before your bank appointment ask whether a personal credit check is required to open the account as some credit unions do this as part of the process of opening a business account.

Hard inquiries which result from the customer asking for a check damage a credit score by a few points so it pays to avoid them. More will request your consumer banking report which lists activities risky to banks like leaving fees unpaid and bouncing checks. Your bank might offer an alternative to services that require a check. However most of the banking institutions and credit unions will give you a 12 month probation period to prove your account management skills.

Even though you re not actually applying to borrow money when you open a checking account don t be surprised if your bank wants to do a credit check before completing the account opening process banks pull credit reports to see if there s any negative information about how you manage credit information that indicates you. Banks with no credit check to open an account or those offering second chance banking accounts are usually not free as it is evident from the listed options above. Not all banks run a report so you can shop around until you find one that does not. If a bank thinks you re too risky it may not let you open an account.