Do Credit Unions Check Your Credit To Open an Account?
Written by
Caitlyn Moorhead
Edited by
Elizabeth Constantineau
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Like any financial institution, banks and credit unions have a system of checks and balances when it comes to opening various bank accounts. Your banking history, and what reporting agencies have to say about it, play a huge role in not only if you’ll be able to open a standard checking or savings account, but also what access to critical banking services you’ll have.
What Credit Unions Check When You Open an Account
Though credit unions don’t necessarily check your credit when you open an account, they often do check your banking and payment history through a ChexSystems report or other reporting system. Much like your credit history can affect what line of credit you’ll be allotted from credit bureaus, your banking history can affect what type of bank accounts you can open or will be able to access.
Here are things that ChexSystems reports would cover that could negatively impact your banking history:
- Negative balances
- Overdrawn account balances
- Overdraft fees
- Not making timely payments
- History of bad checks
- If you’ve committed fraud
What To Do if a Bank Rejects You for an Account
Any checking account activity is tracked and reported on by programs like ChexSystems. If you have tried to open a banking account and have been denied, second-chance banking may be necessary. If you have a subpar banking history thanks to such things as a history of chronic overdraft fees or even involuntary account closures, second-chance banking allows you to build your banking history back up while granting you access to other banking options.
Though not every bank uses ChexSystems when assessing you as a potential customer, many do as they act like a credit report for banking. That being said, the lower your score or report, the less likely you’ll be able to open accounts. No system is perfect but if you open a second-chance bank account it could give you the opportunity to build a better banking history to secure a more stable financial future.
Final Take
How you use a credit card will affect your credit score, but not your bank account. Banks and credit unions do not perform a credit check when opening a new account. It’s not that they don’t have a right to do so, they just typically do not, though there can be a correlation between credit history and banking history when it comes to outstanding items such as unpaid overdraft fees or fraud. Either way, it’s good to know your history in order to properly move forward.
Thanks!
FAQ
Here are answers to some frequently asked questions about whether or not credit unions check your credit when opening an account.- Do you need a good credit score to open an account at a credit union?
- No, credit unions do not check your credit score when you are opening a checking or savings account. However, they do often check your banking history so you may have issues if infractions occur repeatedly in your report.
- Can you be denied a credit union account?
- Yes, you can be denied a credit union account if you have a poor banking history. This would show up through a report that is run through a system such as ChexSystems which many banks use for new customers.
- Does a credit union check credit scores?
- No, though they would be legally allowed to, typically credit unions do not check credit scores when you are opening a standard bank account such as a checking or savings account.
- Do credit unions do a hard credit check?
- No, generally banks and credit unions do not perform a hard credit check when you are just trying to open a standard bank account. However, they could perform a credit check if you are trying to open a credit card through them or secure a loan of any kind.
