3 reasons your checking account application could be denied

It’s relatively easy to apply for a checking account these days, and you don’t even have to visit a bank branch to do so. But there are some situations where banks may deny a checking account application.

Here are some reasons you could find yourself rejected for an account:

1. You have a history of bouncing checks. When you apply for a checking account banks usually gets a report from ChexSystems, a consumer-reporting agency that shares information with financial institutions. A bad report could keep you from opening a checking account. If you are denied a bank account based on ChexSystems information, you can request a copy of the report.
2. You could be a victim of identity fraud. A bank may deny you if there have been other accounts opened in your name or it suspects fraud. If you believe that someone has opened fraudulent bank and other financial accounts in your name it’s important to review your credit report to figure out exactly what’s going on so you can close those accounts.
3. There may be errors on your ChexSystems report. Review your report and contact the appropriate financial institutions to correct the errors.

It’s important to keep careful records when you get problems cleared up on your report. These records may work in your favor when you are trying to open a bank account.

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