The Bank-Account Report You Didn’t Know You Had — Until a Bank Says No

You’re likely familiar with your credit report. But fewer people are in the know about their checking account report.

This separate report is what banks use to determine if they should grant you a checking account. Here’s what it entails and how to get a copy.

What is the checking account report?

Checking account reports track unpaid overdrafts, involuntary closures, suspected fraud and other problems from past accounts. Banks and credit unions regularly review these reports before letting someone open a new checking or savings account. Specialty consumer reporting companies like ChexSystems and Early Warning Services compile these reports.

These account reports do not focus on your credit history or your ability to pay back loans. Negative marks on a bank account report may include unpaid negative balances, a high amount of overdrafts and joint accounts tied to problems.

What to do immediately after a bank says no

The Consumer Financial Protection Bureau (CFPB) has a free guide on how to respond when a bank rejects your account application. You can request a free copy of the report the bank filed with the reporting company that explains why your application was rejected. The CFPB says consumers are entitled to a free copy every 12 months from checking account reporting companies.

The CFPB also put together a comprehensive list of consumer reporting companies, including some of the companies you can contact for a free bank account report (starting on page 26). The list includes each company’s name, website, phone number and address.

These reports may not provide the full picture, but you can obtain valuable insights. Your report can help you identify your weaknesses and improve on them in the future. However, it’s also possible that your document contains errors that can make your bank history look worse than it really is.

How to dispute errors

Even though companies work hard to gather information and create reports, they can have errors in personal details, balances that were already paid, identity theft and more. You can dispute inaccurate information with the bank, credit union or reporting company. Any corrections can increase the likelihood that your application is approved.

In the event your checking account application is rejected based on accurate information, you can still have options for opening a checking account. Many financial institutions offer second-chance checking accounts and similar financial products designed for people who have red flags on their bank account reports. These accounts may have fewer perks than traditional accounts, but they can give you a shot to rebuild your banking history and eventually qualify for more desirable checking accounts. If you still have a regular checking account, avoiding overdrafts and maintaining a strong banking history can help you avoid getting rejected for a checking account in the future.