Most banks do not run a credit check to open a savings account

A credit check looks at your borrowing history and is used when you apply for a loan or credit card. Savings accounts are different — they are a place to store your own money, not borrowed money. Most banks will not pull your credit report when you open one.

What banks do check instead is a system called ChexSystems, which tracks your banking history — specifically whether you have overdrawn accounts, written bad checks, or had accounts closed by the bank. This is not a credit check. It is a banking history check, and it happens at most major banks and credit unions.

A few banks and online banks do not use ChexSystems at all. Some check it but do not disqualify you if there is a problem on your record. The rules vary by institution.

Key Takeaways

  • Banks check ChexSystems (your banking history) for savings accounts, not your credit score or credit report.
  • ChexSystems records overdrawn accounts, unpaid fees, and closed accounts — not whether you pay credit cards on time.
  • A negative ChexSystems record can prevent you from opening an account at major banks, but some banks and credit unions do not use it.
  • You can request your own ChexSystems report for free once per year at www.chexsystems.com.
  • If you have been denied, ask the bank which system they used and what the reason was — they are required to tell you.

What ChexSystems actually checks

ChexSystems is run by a company owned by Fiserv, a major banking software provider. It keeps records on checking and savings accounts — specifically negative events like overdrafts you did not pay back, bounced checks, or accounts closed by the bank because of fraud or repeated problems.

ChexSystems does not report credit card payments, loan history, or your credit score. It only tracks what happened inside your bank accounts. A person with perfect credit but a history of overdrafts might be denied, while someone with poor credit but clean banking habits might be approved.

Records stay on ChexSystems for five years. After that, they fall off automatically.

Which banks check ChexSystems and which do not

Most large national banks check ChexSystems — including Bank of America, Wells Fargo, Chase, and Citibank. Many regional banks and credit unions do as well. However, some banks and most online banks do not use it at all.

Online banks that typically do not check ChexSystems include Ally Bank, Charles Schwab Bank, and Discover Bank. Some credit unions, particularly smaller ones, also skip the check. If you have been denied elsewhere, calling ahead to ask whether a bank uses ChexSystems can save you a hard inquiry on your record.

Even banks that do check ChexSystems do not all treat negative records the same way. Some will deny you outright. Others will approve you but with restrictions — for example, no debit card or a lower initial deposit limit. A few will approve you and ask you to explain what happened.

How to learn about you have a ChexSystems record

You can request your ChexSystems report for free once per year. Go to www.chexsystems.com and click "Consumer Disclosure" or call 1-800-428-9623. You will need to provide your name, address, date of birth, and Social Security number.

The report will show any negative records the company has on file. If there is something you do not recognize or believe is wrong, you can dispute it directly through ChexSystems. Disputes usually take 30 to 45 days to resolve.

If you find a record that is accurate but old — more than five years — you can request that it be removed. ChexSystems is required to delete records after five years, but sometimes they stay in the system by mistake.

What happens if you are denied because of ChexSystems

Banks are required by law to tell you if they deny you because of information in a consumer report — which includes ChexSystems. They must give you the reason in writing, either at the time of denial or within a few days. The notice will include the company name and contact information.

If the bank says you were denied because of ChexSystems, ask for specifics: Was it an overdraft? A closed account? A fraud investigation? Understanding what triggered the denial helps you decide whether to dispute it or look for a bank that does not use ChexSystems.

Some banks offer second-chance accounts specifically for people with ChexSystems records. These accounts may have higher fees, lower initial deposit limits, or restrictions on debit card use, but they let you rebuild your banking history. After six months to a year of clean activity, you may be able to move to a regular account.

The difference between ChexSystems and a credit check

A credit check pulls your credit report from Equifax, Experian, or TransUnion. It shows your credit score, payment history on credit cards and loans, how much debt you carry, and how long your credit history is. Banks use credit checks when you apply for a credit card, personal loan, or mortgage.

ChexSystems is separate and only looks at your banking history. A bank can check ChexSystems without ever looking at your credit report. Conversely, a bank could theoretically check your credit report without checking ChexSystems, though this is rare for savings accounts.

The two systems do not share information. A late credit card payment will not show up on ChexSystems. An overdraft will not show up on your credit report.

Opening a savings account if you have a ChexSystems problem

If you have been denied because of ChexSystems, your options are: dispute the record if you believe it is wrong, wait for the record to age off (five years), or open an account at a bank that does not use ChexSystems.

Online banks are often the fastest route. Since many do not check ChexSystems, you can open an account in minutes from your phone or computer. You will still need to provide your name, address, date of birth, and Social Security number — this is required by federal law for all bank accounts, not because of a credit or banking check.

Credit unions are another option. Some credit unions have looser policies than banks and may approve you even with a ChexSystems record, or they may not check at all. Call ahead and ask before you apply.

Frequently Asked Questions

Will opening a savings account hurt my credit score?

No. Opening a savings account does not involve a credit check and does not appear on your credit report. Your credit score will not change. The only thing that might prevent you from opening an account is a negative ChexSystems record, which is separate from credit.

Can I open a savings account if I have bad credit?

Yes. Bad credit and ChexSystems are two different things. A bank does not check your credit score to open a savings account. You could have a low credit score and still open a savings account at most banks, as long as you do not have a negative banking history in ChexSystems.

What if I do not have a Social Security number?

You can still open a savings account, but you will need an Individual Taxpayer Identification Number (ITIN) instead. Banks are required by federal law to verify your identity and tax status for all accounts. The process is the same; you just provide your ITIN where a Social Security number would go.

How long does it take to open a savings account?

Online, usually 5 to 10 minutes. In person at a branch, usually 15 to 30 minutes. The bank will verify your identity, check ChexSystems (if they use it), and set up your account. If there is a problem with ChexSystems, the bank will tell you at that time.

Can I have multiple savings accounts at different banks?

Yes. There is no limit to how many savings accounts you can open at different banks. Each bank will check ChexSystems separately, but opening multiple accounts does not create a record in ChexSystems itself.