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Is It Possible To Be Rejected Applying For Opening A Bank Account?

Your credit score plays a significant role in your credit card application. The reason you apply for a credit card is to borrow money.

The bank considers your credit score to determine how good you are at making payments. If you have a low credit score, it either means you are in debt or make late payments. Because of this, your application is denied. 

On the other hand, when you want to open a checking account, the bank does not consider your credit score. You are simply asking for a place to keep your money safe and perhaps get a bonus. Sounds simple, right? 

So, why was your application denied? Well, a bank has a reputation to maintain. They don’t just let anyone become a customer. There are a couple more factors that help them reach a decision. Let’s take a look at them:

The ChexSystems Report Has Negative Information

When you apply for a new bank account, the bank looks at your ChexSystems report. ChexSystems is a debit agency that collects your financial information from banks.

A ChexSystems report shows your previous account. The report tells the bank about your account closures and unpaid fees. Basically, it covers everything that shows you didn’t maintain your previous account.

Your Account Has Negative Items

Your bank account history reveals your story of excessive withdrawals, overdrafts, and late bill payments. This tells the bank that you are not good at managing money, which is why they deny your application.

Too Many Over Drafts

Let’s say you have been using a debit card to make payments, but there’s no money in your account. In situations like this, the bank charges an overdraft fee. 

The first two tries show that you had no idea your account was empty, but the rest show carelessness. The new bank will see this as irresponsibility and deny your application.

Bounced Checks

Just like too many overdrafts, bounced checks tell the bank that you don’t know how to manage an account. They see this behavior continuing in the future and hence, deny your application.

The Bank Cannot Identify You As the Account Holder

If the bank can’t match the identification in their database with your government-issued I.D., they will turn you away. Unverified identity includes typos, frozen credit reports, insufficient documentation, and information mismatches.

The bank requires at least two documents to verify you as the account holder. Here’s what you can choose from:

•Driver’s License

•Voter Registration Card


•Foreign Government I.D.

•Work I.D.

•Birth Certificate

•Social Security Card

•Military I.D.

•Employment Authorization Card

•Government Employee I.D.

•Green Card

•Health Insurance Card

•Credit Card

•Marriage Certificate

•School I.D.

•Native American Document

In conclusion, you can reduce your chances of getting denied by checking your ChexSystems report. You can get a free copy of it once a year, online. Dispute any negative information you find on it with proof, and make sure to present a copy of it to the bank. 

Keep track of your savings, so you don’t end up with an empty account. Lastly, keep any of the two above-mentioned IDs on you at all times for verification.

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