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Many people have asked the question, "Why can't I open a bank account?" While there's more than one answer, typically it has to do with how well you've managed your bank accounts in the past.
If your history is spotty, don't worry. We'll explain exactly what's happening and what you need to know to fix the problem. Plus, we'll offer plenty of options to help you manage your money safely, regardless of whether or not you qualify for a traditional account.
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- When you open a bank account, most financial institutions check your ChexSystems report, which details how well you've handled bank accounts in the past and is available for you to request.
- You might get denied a bank account if your banking history includes bad checks or unpaid balances, or if the bank suspects fraud or has trouble verifying your identity.
- You may dispute errors on your ChexSystems report, address issues with banks directly, or wait for the information to fall off in seven years.
- If needed, consider alternatives to traditional bank accounts, such as second-chance bank accounts, prepaid debit cards, and money orders.
Why did I get denied a bank account?
Most of the time, when you apply to open a bank account, banks and credit unions will check your ChexSystems report. This report is compiled by the ChexSystems reporting agency and contains information from your former financial institutions about how well you've handled bank accounts in the past.
Depending on what they find in the report, the bank or credit union could choose to deny your application. Here are some common reasons.
- You have an unpaid negative balance on an account that was closed involuntarily.
- You have a history of writing bad checks.
- You're suspected of fraud.
- You share a joint account with someone who's displayed these behaviors.
- The bank can't verify your identity, possibly due to an error such as a misspelled name or an incorrect Social Security number on the application.
How do I check and fix a ChexSystems report?
To find out if an issue on your ChexSystems report might be causing you to get denied a bank account, you can review the report and consider your options. These might include taking steps to fix your report or looking into alternatives while you wait for it to clear.
Review your report for errors
Bank account reporting companies like ChexSystems are obligated to provide you with one free report per year, plus an additional report anytime you're turned down for a bank account.
You can obtain a copy of this report by requesting it online or by calling 800-428-9623.
You should check your report for errors, especially if you feel like you've been turned down unnecessarily. If you do find an error, contact the reporting company in writing and explain the situation. These companies are required to investigate disputes and resolve any incorrect information.
Ask about your options
Each financial institution sets its own policies for the way that the information in your report impacts your ability to get a bank account. Some may require you to pay any debts that you owe before they let you open an account. Others may offer lower-risk products, such as second-chance bank accounts.
Be sure to ask your bank or credit union what options are available to you. If the options aren't right for you, consider trying a different financial institution. There are banks that don't use ChexSystems in their evaluation.
Wait for your report to clear up
Bank account reporting agencies are required to follow the practices outlined in the Fair Credit Reporting Act (FCRA), which means that negative information can only stay on your report for up to seven years. However, in practice, some reporting agencies tend to disregard information that is more than five years old.
If all else fails, wait it out. Your report will clear up eventually, and there are alternatives that you can use in the meantime for your daily spending. (More on that below.)
Which banks give you a second chance?
If you need a lower-risk account option that allows for a spotty banking history, consider some of the best second-chance bank accounts, such as:
- SoFi®: SoFi is a fintech that offers a combined checking and savings account. The account comes with no monthly fees3 <p>We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>.</p> and a high annual percentage yield (APY)6 <p>Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at <a href="https://www.sofi.com/legal/banking-rate-sheet">https://www.sofi.com/legal/banking-rate-sheet</a></p> . However, it has no physical branches. Member FDIC5 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p> .
- Chime®: Chime's checking account comes with no monthly fees7 <p>Optional services and products may have fees or charges, such as outbound instant transfers, out-of-network transactions, and credit products. Learn more here. Link leads to <a href="https://www.chime.com/policies/fees-info/">chime.com/feesinfo</a></p> or fees for overdrafts8 <p>SpotMe® on Credit is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, "SpotMe"). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month.</p><p>Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won’t cover non-card transactions, including ACH transfers, Pay Anyone, or Chime Checkbook transactions. <a href="https://www.chime.com/policies/">SpotMe terms and conditions</a>.</p> and no foreign transaction fees when using the Chime Visa® Debit Card9 <p class="">To apply for a Chime Card, Chime® Checking Account is required to apply.</p> . But you're limited to only having one account with Chime.
- Varo: Varo's accounts feature no monthly fees or minimum balance requirements in addition to offering a high APY for its savings accounts. Still, you'll need to set up qualified direct deposit to earn that APY, and the ability to earn the highest APY is capped at a $5,000 balance.
- Go2Bank: The Go2Bank account boasts no minimum balance requirements and up to $300 in overdraft protection10 <p>With opt-in and eligible direct deposit. $15 fee may apply for each purchase transaction not repaid within 24 hours of authorization of first transaction that overdraws account. Overdrafts paid at GO2bank’s discretion.</p> . Yet, you'll face a monthly fee if you don't have eligible direct deposit set up, and there's a service fee for cash deposits.
- Wells Fargo: Wells Fargo has plenty of branches if you want in-person service, and its Clear Access checking account has no minimum daily balance requirement. At the same time, though, you'll need to meet certain stipulations to waive the monthly fee, and overdraft protection isn't offered.
- Capital One: Capital One's 360 checking account has no monthly fees or minimum deposit requirements, but it does charge fees for things like outgoing wire transfers and printed checks (after the first order).
You can also ask banks in your area about second-chance options.
What are alternatives for people denied a bank account?
Prepaid debit cards
As the name suggests, prepaid debit cards allow you to load money onto a card, which you can then use similarly to a debit card. The biggest difference between the two is that, in this case, the money is stored directly on the card rather than in a bank account.
However, be aware that these cards can come with ongoing costs. These often include a monthly fee just for having the card and potential charges each time you reload it. Plus, while many businesses accept prepaid cards as long as they're associated with major networks like Visa and Mastercard, others (like certain car rental companies) may not.
Money orders
Meanwhile, if you don't have a bank account and need to give money to another person, consider using a money order in place of a check. Money orders need to be paid in advance, along with providing the recipient's information. Then, once it has been purchased, you can give the recipient the money order, which they can cash at a participating location, like the post office or a bank.
Money orders also usually charge fees, so be prepared to pay a little more than you intend to send.
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FAQs
What is the easiest bank account to open?
There is no one-size-fits-all answer to the question of the easiest bank account to open. If you've had trouble in the past, you may want to look into banks and fintech companies that don't use ChexSystems (such as Chime and SoFi) or banks with no hard credit check.
How can I check my Early Warning Services report and dispute errors?
To get your Early Warning Services report, fill out the online form on the company's website and either mail it, fax it, or upload it through the site's secure customer portal along with identification. You can also call 1-800-745-1560 from 9 a.m. to 8 p.m. EST Monday through Friday. If you find errors, send a written dispute to Early Warning Services with important details, including your consumer ID number, descriptions of each issue, and the reason for the dispute.
What do banks check before letting a customer open an account?
Most banks will check your ChexSystems or Early Warning Systems report, which shows how well you've handled bank accounts in the past. However, some financial institutions will also check your credit score when you go to open an account.
How do I get off the bank blacklist?
You can get off the bank blacklist by clearing up any errors on your ChexSystems report and looking into second chance banking opportunities at your preferred financial institution. You can also wait for any adverse information to fall off your ChexSystems report after a period of seven years.
Bottom line
If you're wondering why you can't open a bank account, the answer most likely has to do with the information contained in your ChexSystems report. Fortunately, though, that information won't stay relevant forever, and there are ways to work around it in the meantime.
The first step is to talk to your financial institution about what options are available to you. They may be able to offer a lower-risk alternative to a traditional account. If they can't help, don't hesitate to shop around for another bank or one of the best credit unions. A different company may be better able to assist you.
