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Banking Banking Basics

Can’t Open a Bank Account? Here’s What to Do

If you can't open a traditional bank account, there are options available to you. Here's what you need to know about navigating the next steps.

Man looking stressed at computer
Tara Mastroeni
Sarah Fulghum
Melinda Sineriz, ABFP®
By Tara Mastroeni and Sarah Fulghum , Edited by Melinda Sineriz, ABFP®
Updated April 6, 2026
Fact check checkmark icon Fact checked

Many people have asked the question, "Why can't I open a bank account?" While there's more than one answer, typically it has to do with how well you've managed your bank accounts in the past.

If your history is spotty, don't worry. We'll explain exactly what's happening and what you need to know to fix the problem. Plus, we'll offer plenty of options to help you manage your money safely, regardless of whether or not you qualify for a traditional account.

Key takeaways
  • When you open a bank account, most financial institutions check your ChexSystems report, which details how well you've handled bank accounts in the past.
  • Your ChexSystems report contains information about things like unpaid fees associated with bank accounts as well as adverse actions like fraud or a history of writing bad checks.
  • You can dispute errors on the report or wait for the information to fall off in seven years.
  • In the meantime, there are products like second chance bank accounts and prepaid debit cards that can help you manage your money.

Why did I get denied to open a bank account?

Most of the time, you have to apply to open a bank account. As part of the application process, banks and credit unions will check your ChexSystems report. This report is compiled by the ChexSystems reporting agency and contains information from your former financial institutions about how well you've handled bank accounts in the past.

Depending on what they find in the report, the bank or credit union could choose to deny your application. Here are some common reasons.

  • You have an unpaid negative balance on an account, and it's closed through involuntary closure.
  • You have a history of writing bad checks.
  • You're suspected of fraud.
  • You share a joint account with someone who's displayed these behaviors.

What can I do to fix my ChexSystems report?

Check your report for errors

Bank account reporting companies like ChexSystems are obligated to provide you with one free report per year, plus an additional report anytime you're turned down for a bank account.

You can obtain a copy of this report by requesting it online or by calling 800-428-9623.

You should check your report for errors, especially if you feel like you've been turned down unnecessarily. If you do find an error, contact the reporting company in writing and explain the situation. These companies are required to investigate disputes and resolve any incorrect information.

Ask about your options

Each financial institution sets its own policies for the way that the information in your report impacts your ability to get a bank account. Some may require you to pay any debts that you owe before they let you open an account. Others may offer lower-risk products like second chance bank accounts that can give you another shot.

Be sure to ask your bank or credit union what options are available to you. If the options aren't right for you, consider trying a different financial institution. There are banks that don't use ChexSystems in their evaluation.

Wait for your report to clear up

Bank account reporting agencies are required to follow the practices outlined in the Fair Credit Reporting Act (FCRA), which means that negative information can only stay on your report for up to seven years. However, in practice, some reporting agencies tend to disregard information that is more than five years old.

If all else fails, wait it out. Your report will clear up eventually, and there are alternatives that you can use in the meantime for your daily spending. (More on that below.)

What bank gives you a second chance?

If you need a lower-risk account option, here are some of the best second chance bank accounts available.

  • SoFi®: SoFi is a fintech that offers a combined checking and savings account. The account comes with no monthly fees1 and a high annual percentage yield (APY)2. However, it has no physical branches. Member FDIC3.
  • Chime®: Chime's checking account comes with no monthly fees4 or fees for overdrafts5 and no foreign transaction fees when using the Chime Visa® Debit Card6. But you're limited to only having one account with Chime.
  • Varo: Varo's accounts feature no monthly fees or minimum balance requirements in addition to offering a high APY for its savings accounts. Still, you'll need to set up qualified direct deposit to earn that APY, and the ability to earn the highest APY is capped at a $5,000 balance.
  • Go2Bank: The Go2Bank account boasts no minimum balance requirements and up to $300 in overdraft protection7. Yet, you'll face a monthly fee if you don't have eligible direct deposit set up, and there's a service fee for cash deposits.
  • Wells Fargo: Wells Fargo has plenty of branches if you want in-person service, and its Clear Access checking account has no minimum daily balance requirement. At the same time, though, you'll need to meet certain stipulations to waive the monthly fee, and overdraft protection isn't offered.
  • Capital One: Capital One's 360 checking account has no monthly fees or minimum deposit requirements, but it does charge fees for things like outgoing wire transfers and printed checks (after the first order).

Alternatives to a bank account

When you're unable to open a bank account, it's important to remember that there are other options available to you. Here are two to consider.

Prepaid debit cards

As the name suggests, prepaid debit cards allow you to load money onto a card, which you can then use similarly to a debit card. The biggest difference between the two is that, in this case, the money is stored directly on the card rather than in a bank account.

However, be aware that these cards can come with fees, especially when loading funds onto the card. Plus, you may be restricted on where you can use these cards as they may not be accepted by all businesses.

Money orders

Meanwhile, if you don't have a bank account and need to give money to another person, consider using a money order in place of a check. Money orders need to be paid in advance, along with providing the recipient's information. Then, once it has been purchased, you can give the recipient the money order, which they can cash at a participating location, like the post office or a bank.

Money orders also usually charge fees, so be prepared to pay a little more than you intend to send.

FAQs

What is the easiest bank account to open?

There is no one-size-fits-all answer to the question of the easiest bank account to open. If you've had trouble in the past, you may want to look into banks that don't use ChexSystems (listed above) or banks with no hard credit check.

What do banks check before letting a customer open an account?

Most banks will check your ChexSystems report, which shows how well you've handled bank accounts in the past. However, some financial institutions will also check your credit score when you go to open an account.

How do I get off the bank blacklist?

You can get off the bank blacklist by clearing up any errors on your ChexSystems report and looking into second chance banking opportunities at your preferred financial institution. You can also wait for any adverse information to fall off your ChexSystems report after a period of seven years.

Bottom line

If you're wondering why you can't open a bank account, the answer most likely has to do with the information contained in your ChexSystems report. Fortunately, though, that information won't stay relevant forever, and there are ways to work around it in the meantime.

The first step is to talk to your financial institution about what options are available to you. They may be able to offer a lower-risk alternative to a traditional account. If they can't help, don't hesitate to shop around for another bank or one of the best credit unions. A different company may be better able to assist you.

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