Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Here is a list of our banking partners.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Not being able to open a bank account can be frustrating and inconvenient However, there are several common reasons why you may be denied a bank account Understanding these reasons can help you take steps to potentially resolve any issues and improve your chances of getting approved for an account in the future.
Reasons You May Be Denied a Bank Account
Here are some of the most common reasons people have trouble opening a bank account:
Poor Credit History
Banks often check your credit report when reviewing an application for a new account. If you have late payments, defaults, or other negative information on your credit history, it can make banks see you as a risky customer and lead to denials. Focus on improving your credit score before reapplying.
Previous Bank Account Problems
If you’ve had issues with past bank accounts, like excessive overdrafts, unpaid fees, or accounts closed due to mismanagement, this will likely show up in databases banks check Resolving any outstanding fees and debts can help improve your chances for approval next time.
Inability to Verify Identity
To open an account, you’ll need to provide personal details like your SSN, date of birth, and address. If a bank can’t verify your identity due to errors or inconsistencies in the information you provided, it may lead to a denial. Double check all details if you get rejected.
Immigration Status
Banks are required to verify your U.S. residency status before opening an account. If you’re an immigrant without the proper documentation, like a Social Security number or ITIN it can prevent you from getting approved. Provide the specific documents the bank requests.
Minimum Balance Requirements
Some banks require a minimum opening deposit to open certain accounts. If you can’t meet this requirement, your application will likely be rejected. Consider accounts with lower or no minimums.
Age Requirements
Most banks have minimum age requirements, such as 13 years old for a savings account or 18 for a checking account. If you’re under the required age, you won’t be able to open an account. Consider adding a parent or guardian as a joint account holder if you’re underage.
What to Do If You’re Denied
If your application gets rejected, don’t panic. Here are some tips that can help:
-
Request your checking account report – Review it for any inaccuracies you can dispute or negative information you may be able to resolve, like unpaid fees.
-
Try another bank – Each bank has its own application criteria. Try a few different banks and credit unions.
-
Correct any application errors – If your identity couldn’t be verified, make sure all personal details provided are 100% accurate.
-
Consider second chance accounts – These are designed for people with past banking problems. They can help you rebuild your banking reputation.
-
Use prepaid cards or money orders – Not ideal long-term solutions, but can work in a pinch if you need basic banking services.
-
Save up for minimum balance requirements – If you couldn’t meet a minimum deposit amount, start saving and reapply when you’ve got enough.
-
Ask to add a joint account holder – If you’re underage, adding a parent/guardian to co-manage the account may help with approval.
-
Provide any other documentation requested – Ensure you submit all documents the bank asks for as they evaluate your application.
Don’t Get Discouraged
Getting denied for a bank account can be frustrating, but try not to get discouraged. With some persistence and focus on improving any potential issues with your banking history, you should eventually be able to open an account. Consider talking to a banker for personalized advice on your situation. And be sure to double check all information provided on any applications to avoid simple mistakes derailing your approval. With some diligence, you’ll be banking in no time.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.
- Common reasons consumers are turned down for a bank account include a history of overdrafts, unpaid bank fees or suspected fraud.
- Applications can also be denied due to mistakes on ones checking account report.
- If youve been denied a bank account, ask the bank why this happened.
- Depending on why you were turned down, you may be able to move forward by clearing up your checking account report, trying a different bank or using alternative banking products.
Setting up a bank account can be the first step in getting your financial future on track. But just like with a credit card application, not everyone gets approved for a bank account.
If you’re struggling to open a bank account, you’re not alone. Many consumers are unable to open accounts because of problems with a past bank account, such as unpaid fees or a history of overdrawing the account. No matter what circumstances brought you to this point, there are still options, though they may take some persistence.
Try a different bank
After finding out why a bank rejected your application, try working with a different bank. Banks and credit unions across the country have different rules when it comes to application approval. Some banks, for example, may deny an application made by someone who recently filed bankruptcy. Others require you to pay any outstanding bank account fees before allowing you to open a new account.
Bankrate can help you shop around for the best checking account to suit your needs.
Denied For A Bank Account? – ChexSystems Explained
FAQ
Why am I getting denied for my bank account?
A bank can deny your request to open an account because of past accounts that were closed due to negative balances, a history of overdrafts or problems verifying your identity. If you’re unable to open a bank account, here are some tips on what to do next.
Why are banks not letting me open an account?
Why would someone not be able to open a bank account?
Americans sometimes are denied bank accounts because they have been convicted of check fraud, identity theft, embezzlement, and other financial crimes. Sometimes they are denied for having bad credit or a low credit score.
What disqualifies you from getting a bank account?
There are several reasons a bank can deny you a checking account. Here are two common reasons: Prior issues with having a checking account, such as writing bad checks and having a bank to charge off the account. Unable to provide sufficient identification at account opening.