Can you open a bank account without credit?
Opening a checking and savings account requires that you have proof of a few things: your age (you must be 18 or share the account with a legal guardian), your identification (you must be a legal U.S. resident) and your current address. But you don't have to worry about where your credit score stands.
You don't need a credit score to open a bank account because banks don't check your credit when you apply for an account. Instead, they'll take a look at your ChexSystems report, which contains information about your banking history. Here's what to know before applying for a new bank account.
| Account | Annual Percentage Yield | Minimum Deposit Requirement |
|---|---|---|
| Navy Federal Credit Union Free EveryDay Checking | 0.01% | $0 |
| Capital One 360 Checking Account | 0.10% | $0 |
| Chase Secure Banking℠ | N/A | $0 |
| Chime® Checking Account | None | $0 |
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.
| Account | Approximate time to complete application |
|---|---|
| Varo Bank Account: Best for Cash Advances | 2 to 3 minutes |
| SoFi Checking and Savings Account: Best for Member Perks | 1 to 3 minutes |
| Wise: Best for Non-Residents | 1 to 3 minutes |
| Chime® Checking Account: Best for Bad Credit | 3 to 4 minutes |
You'll need to provide the same information whether you're opening a savings account or other deposit account. The minimum information that banks are required to get from account applicants are name, address, date of birth and an ID number.
- Aadhaar card.
- Mobile linked to Aadhaar for OTP.
- PAN card.
- Recent scanned image of photograph-Size Up to 1 Mb.
- Scanned image of address proof of address (POA) -Size up to 1 Mb.
- Scanned image of Proof of Identity - Size up to 1 Mb.
Best No Credit Check Bank Accounts in 2023
Chime: Chime is another mobile banking app that offers a no-credit-check checking account. Chime accounts also come with a debit card, early direct deposit, and overdraft protection. Current: Current is a mobile banking app that offers a no-credit-check checking account.
Your ChexSystems score alerts lenders of the level of risk you could pose, and depending on the lender, your score could be too low and you could be denied an account.
Plus, there are many banks that no longer perform a hard credit check when you open an account, making it possible for you to truly get the best bank account for your needs. As online banks, Discover and SoFi make their accounts as easy to use as possible, especially with no hard credit checks.
Can you be refused to open a bank account?
Yes. Banks generally have discretion to determine to which parties and under what conditions they provide their products and services.
While Chase doesn't require a specific credit score to open an account, they will likely check to see if you have an existing ChexSystems report. ChexSystems is like the credit reporting agencies, but for bank accounts.
You don't need a certain credit score to open a Wells Fargo checking or savings account, as there is no credit score requirement. Wells Fargo does not require a credit score for these accounts because they are deposit accounts, not loans or lines of credit.
TD Bank: Open a TD Signature Savings or TD Simple Savings account and earn $200 when you deposit at least $10,000 from outside of TD Bank within 20 days and then maintain that balance for 90 days.
Instant account opening is easy with HDFC Bank. All you need is a working mobile number, Aadhaar number and a PAN number to open an account.
| Account | Forbes Advisor Rating | Minimum Deposit Requirement |
|---|---|---|
| SoFi Checking and Savings Account | 4.6 | $0 |
| nbkc bank Everything Account | 4.6 | $0 |
| Connexus Credit Union Xtraordinary Checking | 4.6 | $0 |
| Ally Bank Spending Account | 4.5 | $0 |
The interest they pay for savings accounts You usually need to make an initial deposit between $25 and $100 to open a savings or checking account. Find out how much you must keep in the account at all times to avoid or reduce fees.
Non-residents who don't have a Social Security number can apply for an Individual Taxpayer Identification Number (ITIN) instead. This may be used as a substitute for an SSN on your bank account application if one is required by the bank.
Can I start a bank with no money? In theory, yes, but you'd better have friends with deep pockets and in high places. Because of the lofty capitalization requirements, most banks are formed as corporations run by a board of directors, whose investors are often local business or community leaders.
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. Read on to find out why banks may turn down your checking account application and what your options are.
What bank can I open online?
- Revolut - A radically better account.
- Revolut - Our pricing plans.
- Varo Money - Bank account.
- Discover - Checking account.
- Juno Finance - Get Started.
- Juno Finance - Home.
- Chime - Checking account.
- Chase - Total Checking.
Processing your application and issuing your account number could take a day or two. Opening a bank account online can be the easiest way to do so but it isn't likely to be the fastest. If you'd prefer to open an account in person, the process may take much longer (i.e. 30 minutes to an hour or more).
While there may not be as many options available, you can get a credit card even if you don't have an established credit score. But the cards you're eligible for may come with higher interest rates.
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Banks and credit unions want to learn about your financial past before establishing an account with you. They do this by running a bank history report on you. Like a credit check, this report highlights the consumer's financial behavior, but for bank accounts instead of credit cards.
