Why do banks REQUIRE a credit report to open a checking/savings account?

[SunnyD]

I cannot for the life of me figure out why a simple checking account requires a credit report these days. It's not like I'm asking for a car loan or a mortgage, just someplace to put my money so I don't spend it all.

I understand that overdraft protection might be considered a credit risk, but seriously, why does getting a plain old bank account mandate a credit check these days?

(And for the record, I was not turned down do to credit, I turned the bank down due to that requirement).

 

[Queasy]

Cause they don't want to have to pay the consequences if you have a history of bad credit and bouncing checks and what not.

 

[spaceman]

BANk
think about it....

 

[cavemanmoron]

Originally posted by: Queasy
Cause they don't want to have to pay the consequences if you have a history of bad credit and bouncing checks and what not.

😉

 

[dabuddha]

It's stupid but they're usually not getting a real "credit report." BofA checks with a company called Chexsystems (or something like that) to see if you've had any bad bank accounts in the past. Such as accounts that were closed because of NSF or whatnot.

 

[StageLeft]

You can thank all of the credit-idiot dumb sh*ts out there who act like freaking crack addicts a police evidence room with their money for this....ok that was a long metaphor, but you get the point.

 

[Queasy]

Originally posted by: Skoorb
You can thank all of the credit-idiot dumb sh*ts out there who act like freaking crack addicts a police evidence room with their money for this....ok that was a long metaphor, but you get the point.

Pookey from New Jack City would have been a better yet shorter metaphor. 😉

 

[yoda291]

my bank didn't do a credit check when i went in for a checking acct. Tho they did ask me if I had any other accts.

 

[StageLeft]

Originally posted by: Queasy

Originally posted by: Skoorb
You can thank all of the credit-idiot dumb sh*ts out there who act like freaking crack addicts a police evidence room with their money for this....ok that was a long metaphor, but you get the point.

Pookey from New Jack City would have been a better yet shorter metaphor. 😉

LOL!

 

[SunnyD]

Originally posted by: ncircle
BANk
think about it....

First off... that was the most stupid comment related to this.

Originally posted by: dabuddha
It's stupid but they're usually not getting a real "credit report." BofA checks with a company called Chexsystems (or something like that) to see if you've had any bad bank accounts in the past. Such as accounts that were closed because of NSF or whatnot.

Actually, Wachovia told me this verbatim:
If you've had something reported with ChexSystems, no matter if it's been taken care of or not, we're not supposed to open an account for you for 5 years (the length of time it's going to show on ChexSystems). In addition, we will also pull a credit report to determine whether we can open an account, but honestly if either shows up negative, as in your credit shows any collection or otherwise on it, we will not be able to open an account.

Frankly - that is just plain dumb. I can understand ChexSystems, but what in the high hell of Anandtech Moderation does credit... in ANY way, shape or form have to do with a bank account.

 

[daniel49]

Probably because you do buisness with one of those huge, impersonal, slap you with a fee, and suck the life outa ya banks still.

Try a smaller bank or credit union.

 

[Cheval]

I opened a checking account in Nov 2003 and they never did a credit check...

 

[astrosfan90]

My guess is that since most banks these days automatically offer you a debit and credit card with your account, and likely get a large part of their income from the resulting revenues, it doesn't make good sense for them to hand you a piece of plastic that you can use to run up bills with if you have any history of stupidity with such responsibilities. Better to weed out as many of the potentially problematic before they start causing your company problems (and as a result $$$) than to find out too late that someone is prone to bouncing checks, overdrafting with their debit card, and not paying their credit card bills.

 

[MDE]

I walked into the bank with cash and left with a checking account, no credit check or anything. It may have helped that I already had a savings account there and everyone in my immediate family also has an account there.

 

[vegetation]

They usually run your name through chexsystems, which is basically a very poor quality credit check system. Real credit checks will use experian, transunion, or equifax.

 

[jaybittle]

Originally posted by: Queasy
Cause they don't want to have to pay the consequences if you have a history of bad credit and bouncing checks and what not.

:thumbsup:

 

[TheLonelyPhoenix]

They only asked me about a credit history after I requested a debit card.

 

[rdsoxasu]

You can thank USA PATRIOT ACT for the credit check. Usually it's used for a few reasons:

1) Identification Verification. F/I's are now required to verify all new customers ID before offering any services. Credit Check is the easiest b/c it is safest against forgery, also it contains a lot of information that is helfpul to banks.

2) Check for Bankruptcy or Chexsystems. You do not want to be on Chex as it is on your credit for seven years.

3) Evaluate credit worthiness to offer you other services.