Why can't I open a bank account?
Short answer
A bank can refuse to open your account if it can't verify who you are, or if a checking account report from a company like Chex Systems shows unpaid negative balances, bad checks or suspected fraud. When a report is the reason, the bank must tell you which company made it, and you can get that report free.
By Alex Thomas · Founder of ITIN Club
Updated
The usual reasons
| Reason | What it means | What to try |
|---|---|---|
| The bank can't verify you | The federal ID rule requires banks to decide when not to open an account they can't verify | Apply in a branch with original IDs that show your name spelled the same way |
| Your details match someone else | Chase lists this as a reason. It can be a typo or identity theft | Check every field, then check your credit reports |
| An old account closed with a negative balance | Unpaid overdrafts or fees show up in checking account reports | Pay the old bank. Some banks require it first |
| Bad checks or suspected fraud | Also reported, even on a joint account where the other owner caused it | Get the report and dispute anything wrong |
| No SSN or US address | Many online forms require both | Ask a branch. See do you need an SSN |
How to fix a bad report
Banks share account history with checking account reporting companies such as Chex Systems and Early Warning Services. The CFPB explains your rights.
- 1
Read the denial notice
If a report was behind the denial, the bank must send an adverse action notice with the reporting company's name and contact details.
- 2
Get your free report
You can ask that company for a free copy after a denial. Nationwide companies also give one free report a year on request.
- 3
Dispute errors in writing
The company must investigate and fix inaccurate information. Most negative items can't stay on the report after seven years.
- 4
Try a lower-risk account
Many banks offer accounts that can't be overdrawn, and they rely less on these reports. Chase also points to second-chance checking accounts and prepaid cards.
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