Did you know that some banks pull your credit score when you apply for a checking account? And did you know that some banks require a minimum credit score in order to accept you?
Many banks simply use ChexSystems, which is a network comprised of financial institutions that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems shares this information among the member institutions to help them asses the risk of opening new accounts.
Many of the nation’s most popular banks use ChexSystems to determine whether or not to accept an application. I contacted many of the largest and most popular banks and asked about their policies. The responses I got were quite interesting
For example, Bank of America, Chase Bank, Citi Bank, and TD Bank all use ChexSystems as their only check before issuing a checking account.
Wells Fargo goes half a step further by using ChexSystems first, and if anything looks suspicious, they do a soft pull.
Everbank does soft credit inquiries and does not use ChexSystems.
Want to know which ones do hard credit inquiries on checking accounts?
ING does a hard credit inquiry on new checking accounts, although long-time customers with a different type of account are likely eligible without an inquiry.
Ally Bank also does a hard credit inquiry on new checking accounts, and went even further to tell me that in order to qualify, a credit score of 600 or better is needed.
Want to know if what your ChexSystems report looks like? Tomorrow I’ll detail what it takes to get a free report and what is included.
Readers, does knowing this make you less likely to open an account with ING or Ally? Is the hard credit inquiry worth it?