The idea may not occur to a lot of people until it finally occurs you can be denied a bank account. That does not mean that credit unions and banking institutions will turn customers down for no reason because they do not have a good credit history. However, they are likely to deny your application when your banking history is poor. That is where you need banks with no credit check to open an account.
As you will discover in this article, most financial institutions today use ChexSystems to run checks on the recent banking histories of applicants. ChexSystems is an independent reporting company where banks can check your banking history. If you are looking at unpaid overdraft fees and bank fraud among other issues in your banking history, new banks are going to be wary of allowing you to open an account with no credit check them.
Do Banks Check Credit Reports to Open New Accounts?
While opening a new account does not usually involve any kind of credit, customers’ credit profiles are still able to impact their ability to receive a loan. This is because some of the credit unions and banks will check credit reports as part of their application procedures.
In most cases, this kind of credit check does not stop you from opening a bank account. You don’t necessarily have to worry about getting a no-credit-check bank account. However, this credit check can still influence the kinds of accounts you are eligible for. Yet again, some red flags, such as charge-offs or bankruptcy with previous financial institutions may also negatively influence your options. Thankfully, this kind of credit check is not a hard pull, but a soft credit pull. In other words, applying for a new bank account should not have an impact on your credit scores.
How Your Banking History?
Nonetheless, while credit checks can influence the decision of a financial institution, more vital to your ability in securing a bank account is a different kind of financial history of consumers: the ChexSystems report. Also known as the Early Warning Systems or Tele Check report, depending on your financial institution, the ChexSystem report is more of a credit report. Customers are even able to obtain a ChexSystems score.
However, in the place of having data about a consumer’s credit cards and loans, this report often contains information about a customer banking history. Banks are often more concerned about whether a new customer has a history of keeping their account in good standing.
In essence, banks and credit unions want to reduce the risk that consumers will abuse their bank accounts. Therefore, a track record indicating poor banking behavior is going to be a red flag. For instance, failing to repay overdraft charges, and often overdraft your account, you are likely to get denied a new checking account. In that case, you may consider a free online checking account with no opening deposit as another option.
Checking Your Annual ChexSystems Report?
Consumers are entitled to their free copy of the ChexSystems report each year just as with their credit reports. This helps you see what banking institutions see. If you have been rejected for a new bank account with the previous 60 days, you are also entitled to a copy of that report. Since anyone can make errors, it is vital to cross-check the ChexSystems report. On the bright side, you can still dispute any content you find inaccurate in the report. You can follow up on this process by phone, online, or by mail.
Credit unions and banks will report to the bank history-tracking bureau like ChexSystems for:
- The occurrence of non-sufficient funds.
- Unpaid fees.
- Account closures.
- Fraudulent activity.
Opening accounts with banks with no opening deposit or minimum balance can help you avoid some of the issues for which banks can report you to the history-tracking bureau. Consumers who happen to have poor track records of banking do not need to fear applying for bank accounts for the rest of their lives. Most of the items in the ChexSystems will be deleted in a space of five years. However, it is essential to keep in mind that each financial institution has independent records. Having a bad history with a specific may hold against you for some time.
Avoiding Poor Banking Histories With Online
One of the primary benefits of online retailers like Overstock and Amazon have over typical brick-and-mortar stores is minimized overhead. It means they do not have to pay utilities, rent, or employees to ensure that stores are open and well-stocked. Lack of overhead enables online retailers to offer products at discounted rates and still earn a profit. This model is now being used across many other industries such as banking. Online-only banks are financial institutions with no physical bank branches. These banks are becoming a common part of customer banking today.
If you have been wondering whether you can get a free online checking account with no opening deposit, consider checking some of the online-only banking institutions. Since these banks do not come with costs like maintaining bank branches or building, they can provide accounts that have better interest rates as well as lower fees.
Even as they do all these, online-only banks do not negatively affect their bottom line. Online-only banks tend to provide robust mobile and online banking options that typically appeal to busy customers who do not have so much time to spare going to bank branches. You can, therefore, open a free business checking account online with no deposit, and save yourself time and gas money visiting physical branches.
Drawbacks Banks With No Credit Check To Open Account
Online-Only Banks come with a few cons. To begin with, the lack of in-person customer representatives can be a major issue. You cannot, for instance, head into one of the local branches to inquire about your account. Also, you cannot pop in to change some bills for foreign currency or swift cash deposits. Whilst top online banking features such as depositing checks using your mobile phone can make some of the drawbacks seem less problematic, they can still prove to be huge impediments when opening your account for the first time.
This is because of preliminary funding requirements that most bank accounts have, particularly when you do not have another account from which you can transfer funds. When making initial deposits and cannot finance your account using an existing bank account, it is vital to find out whether using a prepaid debit card for the same purpose will work. You can also ask a family member or colleague to help fund the online-only bank account. If all other options won’t work, then consider opening an account at one of the local credit unions or local banks to deposit your cash.
The Best Banks With No Credit Check to Open Account
If you are struggling with bad credit issues, banking institutions that offer bank accounts for consumers with bad credit can give you a fresh start. These accounts can get you back banking the typical way. There are far-reaching consequences of bad credit.
These consequences can even affect your ability to open a bank account. Going about with daily financial transactions minus a bank account can be quite an inconvenience, besides being costly and unsafe. That is why you need banks with no credit check to open an account. You have no reason to incur prepaid debit card charges or pay to check to cash when there are plenty of bank accounts for people with bad credit across the US Consider opening a checking account for bad credit and save on:
- Money order.
- Prepaid debit card.
- Check cashing fees.
- Money loading.
Unpaid overdrafts are usually the major reason for consumers ending up with an EWS or ChexSystems record. Overdrafts can also cause bad credit. A checking account balance that is outstanding can get forwarded to a collection agency. When this happens, the debt gets listed on your credit records. Collection accounts usually remain on a consumer’s credit report for seven years.
This is whether the debt is paid not. Furthermore, a credit union or bank can also forward your banking records to ChexSystems that holds information for five years. By owing an outstanding banking debt, paying does not necessarily get the debt immediately struck from your report.
That is why consumers need bank accounts that cater to those with bad credit. This is because a paid banking debt may continue affecting your ability to open a new account with other banking institutions. Mistakes do happen, and most people lack the skills for managing checking accounts. Managing a checking account is usually not taught by parents or in school.
BBVA has an online checking account known as the BBVA ClearConnect Checking account. All persons can apply for the account as long as they are 18 years and over. The best part about this account is they know just how people need a fresh start. BBVA is among the few financial institutions providing second chance banking. Their account for bad credit comes with full checking.
- Unlimited check writing.
- Visa debit card.
- Online bill payments.
- Direct deposit.
- Mobile deposits.
- Cash-back rewards.
BBVA does not apply fees for using their ATM or the All Point network, presently hovering around 55,000 free ATM areas all over the U.S. This means you can use All Point network ATM to make cash and check deposits just as you would with BBVA ATM.
- Low $25 opening deposit.
- No monthly service charges.
- Complimentary Online Banking.
- Easy to send money only with an email address or phone number.
- Mobile Check Deposit.
- Online Statements and Free Bill Pay.
- The debit card earns you cash back rewards on everyday purchases.
- Free ATMs at 55,000+ Allpoint ATM or at any BBVA ATM.
2. OneUnited Bank
OneUnited Bank has the U2 E-Checking Account optimized for consumers who have poor banking histories and need a second chance. This online second chance checking account is available to consumers across all states. To apply, consumers have to enter their name and email addresses before choosing the Debit or Checking option, then clicking on the button “Apply Today”. As you apply for this account, you will want to select the U2 E-Checking Account option and choose from the wide range of debit card designs from artful to plain.
- Low opening deposit of $100.
- Free mobile and online banking.
- Get cash, surcharge with no fee at more than 25,000 ATMs across the U.S.
- Deposit checks using the mobile app.
- A monthly checking service charge of $12.
- Free bill pay.
3. Fifth Third Bank
These banks provide a straightforward way of managing funds. Their Visa debit card provides instant access to your cash, besides the security and convenience of a banking relationship. Because there is no credit score requirement, consumers need to keep in mind this is a bare-bones account. This account does not offer check deposits or check writing at the ATM. However, on the plus side, the Express Banking account does not have a monthly service charge, overdraft fees, or balance requirement.
- No monthly fee.
- Not overdraft fees or balance requirement.
- No check deposits or check writing at an ATM.
- Cashing and depositing checks at locations of Fifth Third branches.
- Mobile deposits come with immediate funds availability.
- Online and mobile banking.
This is a mobile checking account under the Green Dot Bank. GoBank does not use bad credit or ChexSystems to deny accounts. This bank has no physical branches. Consumers just use self-service online and mobile options, as well as ATM.
- Monthly fee of $8.95 unless consumers set up direct deposits amounting to $500 every month.
- No credit check or ChexSystems used.
- Depositing cash at participating retailers e.g. Walmart or 7-11 comes with a $4.95 fee.
- Opening an account at a retail location comes with a $2.95 fee and an opening deposit fee of $20.
- Free to open an account by signing up online or through mobile.
- Two methods to get free cash: cash-backs with debit card purchases or using an in-network ATM.
5. Bank of America
The Bank of America has a basic checking account known as the SafeBalance Banking Account. If you are looking for a no-frills account, SafeBalance does not charge any overdraft fees by denying you transactions where there is insufficient money in the account. While SafeBalance Banking Account does not offer check-writing privileges, it comes with useful ways to pay businesses or individuals. You can also use online banking or debit card to pay bills, individuals, or make purchases.
- Low minimum balance of $25 to open.
- A monthly service fee of $4.95.
- Mobile check deposits.
- Transactions at thousands of Bank of America ATMs come with no fees.
- Transactions at other banks’ ATMs in the US cost $2.5 per transaction.
6. Corporate America Family Credit Union
Corporate America Family Credit Union provides a fresh start checking account, which offers consumers the opportunity to rebuild a positive history of their checking accounts. To open a checking account, you must join the Corporate America Family Credit Union membership.
- Keep a minimum of $100 in the Regular Share Account.
- Comes with a $10 monthly fee.
- Become a member of the Corporate America Family Credit Union.
7. America Credit Union
If you are a consumer looking to re-establish your financial health, America Credit Union provides the Opportunity Checking Account. With this account, consumers can nurture a strong positive banking relationship. Membership in America Credit Union entails all Armed Forces members. This includes those who are still active, reservists, and retired ones. However, relatives of the mentioned members, civilian personnel, plus select employer groups can also join. If you don’t fall under the categories, joining the PNCC can give you membership to the ACU.
- Monthly fees of $8.95 if you are doing direct deposits of your whole payroll, social security check, or pension.
- Pay $10 minimum every month if you don’t do direct deposits to ACU
- Transact at least $500 per month to avoid monthly charges.
- No minimum balance.
- Free mobile deposits and mobile banking.
- Free bill pay and online banking.
- Offers ten free ATM withdrawals every month, with other banks’ ATMs.
- 12 consecutive months of Non-Sufficient Funds notices advances you to another type of checking account.
8. Unify Financial Credit Union
If you are a first-timer or an account holder in search of rebuilding a positive checking history with banking institutions, Unify Financial Credit Union provides the Right Start Checking account. You can qualify through Western Federal Credit Union to join the Unify Financial Credit Union. The WFCU consents potential members to join using a complimentary membership via partnering non-profits: Friends of Hobbs or Surfrider Foundation.
- Low opening deposit of $25.
- No minimum balance requirement.
- No monthly charges or per-check fees.
- Free eBanking access.
- Overdraft protection of up to $250.
9. Aspire Credit Union
This is a Fresh Start Checking Account catering to the needs of consumers with difficulties getting approvals for checking accounts with banks and other financial institutions. Consumers can easily build positive financial records with this institution. To join this credit union, you have to donate to any of its 15 participating organizations. For instance, you can donate a gift worth $5 to the Land Trust of North Alabama.
- Full allocation or 100% of your paycheck via mandatory direct deposit.
- No fraudulent history records.
- It’s No monthly account maintenance fees.
- No transaction fees for ATM when you use their surcharge-free ATM network.
- Access to over 70,000 ATMs, which are surcharge-free.
- Free telephone and online account access with Call24 and My CU Online.
- Accompanying debit cards.
Bank Accounts for Bad Credit: Offering You A Second Chance
Even as most other banking institutions often deny consumers with shaky credit, second chance bank accounts offer you another chance at checking. These are typically banks with no credit check to open an account. They do not use ChexSystems and other bureaus or intentionally provide accounts to applicants who have a history of troubled banking.
These banks often Understand:
- Financial hardships.
- Unforeseen circumstances.
- Poor skills can cause account mismanagement.
You can find banks with checking accounts for bad credit across the nation. The best part is you can re-establish good banking records even as you enjoy all the perks of a checking account. Most banks provide online checking account features, which keep you up to speed with daily transactions, bill payments, and mobile deposits.
How to Find Other Second Chance Accounts
While these are among the best options for banks with no credit check to open an account, they may not work for everyone. If for one reason or the other these options are not suitable for your needs, the next important step is to start looking for bad credit bank accounts.
You can always check reviews for bad credit credit cards guaranteed approval no deposit, or look out for second chance banking options with your local credit union or community bank. Keep in mind that you are looking for a financial institution that emphasizes assisting customers as well as creating a personal banking relationship.
Now that you have opened a bank account without going through the credit check process, it is vital to keep track of your cash. The majority of bank accounts allow online access as well as apps, which provide up-to-date account details and alerts. Banks with no credit check to open an account or those offering second chance banking accounts are usually not free, as is evident from the listed options above.
However, most of the banking institutions and credit unions will give you a 12-month probation period to prove your account management skills. Thereafter, you can get an upgrade to a free account or one that comes with more benefits. The bank is more than likely monitoring your new account. Those who are prone to overdrafts, they need to be conscious of their account balance at all times. It is best to open a bank account with overdraft protection plus an overdraft credit line.