Facts

Banks check your credit prior to allowing you to open a checking account to see how responsible you are with your debts. A bad credit history indicates that you are more likely to run up bank fees and not pay them.

Time Frame

Many negative items that can contribute to a low credit score, such as charge-offs and collection accounts, will be removed after seven years. If you have not viewed your credit report in a while, your score may not be as bad as you think.

Considerations

Many Internet banks will allow consumers to open checking accounts regardless of their bad credit history. In addition, banks such as Wells Fargo and HSBC offer special programs for individuals with bad credit to open checking accounts.

Options

If you explain your situation to the bank manager, you may be able to get a checking account even if you have bad credit. A bank manager has the authority to approve your application even if your credit score does not meet the bank's standards.

Warning

If you owed a debt to a bank within the past five years that you did not pay, your name is likely to be in the ChexSystems database. ChexSystems keeps records of all individuals who owe debts to banks. If your name appears within a ChexSystems report, you may be turned down for a checking account even with a good credit score.

Source:

CardReport: The Fair Credit Reporting Act (section 605)

Financial Web: Bad Credit? Bank Accounts That Will Forgive You

ConsumerDebit.com: ChexSystems

More Information:

Experian: Credit Score Basics

MyFICO.com: Improving Your FICO Credit Score