How to Open a Bank Account Online No Deposit with Bad Credit

Are you facing difficulties in opening a bank account? If so, then worry not as you are in the right place. It does not matter whether you are listed in the ChexSystems or you are appearing in the credit bureaus bad credit list. I will take you through the whole process and you will be able to open a bank account online with no deposit and bad credit on your own even today.

You might be unaware of how important bank accounts are. Well, a bank account has various uses that are important to understand. First of all, a bank account will help you save your money for future use. In this scenario, you will open a savings bank account. A savings bank account limits your withdrawals and you may not be able to withdraw beyond a certain amount or each month. Most savings accounts limit the number of monthly withdrawals to below six.

You can also open a checking account that will help you keep the money for any time use. A checking account allows you to access your money 24/7. It allows you to write checks and you can have a debit or credit card so that you can withdraw funds in ATMs. There are numerous banks with free checking accounts with no deposit that you can open either online or by visiting the physical branches.

Do most banks require a credit check for bank accounts?

Open bank account online no deposit bad credit

No. Banks only check your credit history if you are applying for a credit card. Here, they check whether you have been utilizing your credit well or not. If you have some incidences of defaulting loans and lines of credits or cases of late payments, or even having left credit cards idle, then you must be in the negative listing of the credit bureaus.

Most banks only check whether you are in the ChexSystems if you only need a bank account. However, some banks do not take it seriously and they can allow you to open a free business checking account online with no deposit at all. If you have ever misused your bank account from any bank before, you automatically have ended up in the ChexSystems since every bank has the obligation to report irresponsible account users to the system.

You can find yourself in the ChexSytems for failing to close your account correctly, writing checks for a closed account, writing checks for accounts with insufficient funds, or failing to pay certain fees such as account maintenance fees and annual fees among others.

How do banks determine a bad credit?

Many people wonder how one can walk into a new bank to get a credit card only to find the selves ineligible. The truth behind the matter is that all banks have a central point of communication where they can inquire about anybody applying for a credit card or a loan. Three main bodies receive information about credit card usage from all financial institutions.

These include:

  • Equifax
  • TransUnion
  • Experian

Banks must present similar information to each credit bureau to avoid confusion. However, slight differences may occur. Unlike in the ChexSystems where banks only list the negative account users, the credit bureaus keep information about the good and the bad credit users. There are various categories of credit scores whereby we have very poor, fair, good, very good, and excellent.

The scores range from 300 – 850. The lowest is very poor while the highest is excellent. To be elaborate, a very poor credit range is 300-579, while fair scores range from 580- 669. Good credit scores range from 670-739 while 740- 799 indicates a very good credit score category. Someone with excellent credit scores has 800-850 credit scores.

How to choose the right bank account?

Different banks have different bank accounts and it can be very confusing to choose the best bank account according to your needs. I can attest that it is challenging but above all, you should be able to identify the best bank to open. Consider the following before opening an account with any bank.

i) Checking or saving?

You have to know what kind of account you need. If you need an account whereby you can access the money at any time of the day, then you need a checking account. With such an account, you can shop online with the checking account number, send money to friends and relatives, or even withdraw to use for other purposes. In short, a checking account is for emergency expenditure.

A savings account will help you save money for future use. Money in a savings account is not accessible that easily and as I had mentioned earlier, savings accounts do not have checks and debit cards. Banks must discourage you by all means from accessing the funds in a savings account.

However, if the need arises, you can withdraw money in your account by visiting your branch but you cannot exceed a certain number of withdrawals per month.  Savings accounts earn you a higher interest rate as compared to checking accounts and thus are the best for saving for future projects.

ii) Interests

The amount of money you earn on top of the initial deposit in a bank account is called the interest. Different bank accounts have different interests that you can earn from the principal. You should be careful to choose a bank account with a higher interest rate more so when saving money for future use.

iii) Fees

Different bank accounts have different fees. There are bank accounts that charge maintenance fees each month. Moreover, you can find an account with annual charges and thus you should be careful not to open an account with so many changes.

Other benefits to check include;

iv) Ease of access

If you want a bank account that you can easily access the funds, then you better check on bank accounts that have credit cards or allow writing of checks. Furthermore, an easy to access account should allow you to manage it online using your smartphone and an app.

v) Bonus

There are bank accounts that offer opening bonuses to new customers. You can find an account offering an opening bonus of around $200. However, in most cases, you have to deposit a certain amount of money to get the bonus amount.

vi) Cashbacks, points, and miles

Some accounts and especially the checking accounts with debit cards give cashbacks when you spend a certain amount of money. Such accounts are good to consider so that you can benefit from the free money. Points and miles are redeemed at the specified shopping areas or travel companies and restaurants.

What do you need to open a bank account?

Banks cannot open for you an account that easily. Once you have chosen the bank of your choice, you need to meet certain criteria so that you can get a bank account. As a person, you must be eighteen years and above. That means that you are an adult. In addition, you need documentation such as;

  • Your government ID
  • Social Security Number, and
  • Current residence address

You may also require other things such as passport size photos, phone numbers, and email addresses. If you do not have a Social Security Number, you may use the Individual Taxpayer Identification Number (ITN). Non-resident people can use the ITN number together with their Passports to get bank accounts.

The next thing you have to do is to complete the application process after all your documents are approved. Account applications can be online or at the physical banks’ branch. The online application is the easiest. You should choose a bank that allows the online application.

Visit the bank’s website with your phone, tablet, or computer using the internet and navigate to ‘open a new account’. Choose the kind of account you need to apply for and fill all the necessary fields. Lastly, upload all the necessary documents and submit them.

Perform any other activity requested during the application process. Once the details are submitted successfully, you can wait for your bank to be active or do as instructed to make it active. Once the account is ready, you can start using it. You can recharge it with some cash and send money with a checking account number to others of the same bank or a different one.

How to open a bank account with a bad credit?

It is challenging to open a bank account with bad credit since most banks tend to turn down applicants of such accounts. However, having a bad banking history should not be a hindrance to a bank account opening since you can find banks that accept your bad banking history.

Therefore, if you know that your banking history is poor, you should focus on such accounts. Once you identify a bank account that does not check your credit history, you should go ahead and apply either online or at any of the bank’s branches.

You should be keen to avail of all the required documents before starting the application process so that you do not hang during the application process. Alternatively, you can fix your banking mistakes that led your details into the ChexSystems. As I had mentioned earlier, these could be issues such as;

  • Many unpaid overdraft fees
  • Owing to a bank some unpaid fees
  • Bounced checks
  • Writing checks to closed accounts
  • Frozen accounts
  • Excessive withdrawals
  • Overdrawn accounts, and
  • Bank fraud or identity theft

Some records in the ChexSytems are easy to remove anytime while others can remain in the systems for up to five years even after fixing them. The truth of the matter is that, once you finish correcting all the issues, you now find it easy to open a free online checking account with no opening deposit at various banks offering such kinds of accounts.

Having learned your lesson, you can now focus on proper account utilization so that you avoid finding yourself in such troubles again. Another option is getting a second chance account. First, you identify the bank with the most preferred checking account and then try to apply for the regular accounts.

Your bank will automatically reject your application after checking the ChexSystems and then offer you a second chance checking with no opening deposit. A second chance checking account is a stripped-down version of the traditional bank account in that you may not have a chance to write checks,  it has low withdrawal limits among other limitations.

Banks accounts that don’t require a deposit

Now that you have learned a lot about account opening, let us look at the banks that you can open without depositing any money on them during the opening.

1) Chime

Chime is a nice bank that can even give you fee-free overdrafts of up to $100 once you get an account with them. Furthermore, Chime helps you to get paid early when you set up a direct deposit.  You can get your paycheck up to two days earlier than some of your workmates.

The bank has no minimum balance, no monthly fees, and no foreign transaction fees. If you have a debit card, you can withdraw money for free at any of the ATMs belonging to the bank. Learn more.

2) First American Bank

If you need home equity loans, then you can consider the First American Bank for that. The bank offers numerous bank accounts with debit and credit cards. It does not matter whether you want a business or a personal account as the bank will sort you out.

Various accounts at First American bank include money market accounts, savings accounts, certificates of deposit, health and benefits accounts, and IRAs. You can also get wealth advisory services from the bank.  Learn more.

3) Bank of America

The Bank of America is an American based bank and financial services company which has headquarters in North Carolina. It offers credit cards such as the Bank of America Cash Rewards card that has no annual fees, the Bank of America Travel Rewards card with no annual fees, and the Bank of America Premium Rewards card that charges a $95 annual fee.

The bank also offers auto loans and home loans among others. You can also get a checking account and use it for various purposes such as transferring money using the routing number and account number. You can also get a savings account with the bank. Learn more

4) GoBank

Get your online checking account today with GoBank. The bank is currently offering the Unlimited Cash Back Bank Account by Green Dot online. To benefit, you need to visit GreenDot.com and be able to earn 2% cash back on online and mobile purchases.

You also benefit from free in-network ATM withdrawals. Unfortunately, GoBank is no longer offering debit cards online. It is easy to operate their account with an app that you have to download online. Deposit checks using the app as well. Learn more

5) Peoples Bank

At Peoples Bank, you will find personal and business accounts to choose from. Account types such as checking, savings, CDs, and IRAs are available. You will also benefit from online lending and mobile account operation. Moreover, the bank is an expert on matters related to mortgage and wealth management. Learn more.

6) Navy Federal Credit Union

The bank caters to servicemen such as the coast guards, navy, Marine Corps, airforce, space force, and veterans. The servicemen’s family members are also eligible to apply for an account with the credit union. Members can benefit from credit cards and loans. Withdraw money using their ATM cards at various branches in various parts of the country. Learn more

7) Radius Bank

Bankrate named Radius Bank as the best online bank of 2020 due to the mobile banking app, unlimited ATM fee rebates, and high-interest rates. The bank has ATMs countrywide and you can earn 1% cashbacks while using the Rewards Checking Account.

You can also earn 2.5 % APY on savings. The Rewards Checking account has no monthly maintenance fee. Furthermore, it has no minimum balance requirement after $100 to open. Learn more.

8) Axos

Axos Financial is a financial company based in San Diego, California. It is the parent of Axos Bank. As it celebrates the 20th anniversary, the bank boasts of various financial solutions related to personal banking as well as business banking.

You can get checking, savings, and certificate of deposit accounts. Businesses can also benefit from merchant services offered by the bank. Learn more

9) Wells Fargo Bank

Wells Fargo Bank is so popular with most Americans that the majority have accounts with the bank. The bank has accounts such as checking, savings, and CDs accounts. It also offers debit cards and credit cards. You can also benefit from foreign exchange and global remittance services. The application of an account with the bank is online. Learn more.

10) Credit Unions

A credit union is a member-owned financial institution. The people owning a credit union control it and operate on the principle of people helping people, and providing the members with credit at competitive rates. Credit unions also offer other financial services such as financial advice and many more.

Examples of credit Unions include Alliant Credit Union, Star One Credit Union, Boeing Employees Credit Union, and Quorum Federal Credit Union among others.

What are online-only banks?

An online bank is the one that operates only online and has no physical branch. The good thing with online banks is that the operators do not incur the cost of operating a bank branch like the banks with physical do. Due to low operational costs, online banks tend to offer high interest rates on deposits and have less fees.

Some online banks do not use the ChexSystems and thus it is easy to open a business checking account online with no ChexSystems so as to manage your business finances appropriately. Generally, online banks have smartphone applications that members download so as to manage their accounts online.

What is the difference between banks & credit unions?

The major difference between banks and credit unions is that banks are mainly for profit reasons while credit unions are not profit oriented. Furthermore, credit unions have lower fees and high interest rates on member accounts since their main goal is to uplift each other. On the other hand, most banks have lower interest rates and higher fees so as to maximize on profits.

Comparing the two, credit unions are better as compared to a bank account as the members have the greatest advantage. So long as you know several people in a credit union, you are likely going to benefit a lot from low interest loans and flexible repayment terms.

What are the pros and cons of checking account?

A checking account has both advantages and disadvantages. In this world, there is nothing without a good and bad side.


  • Checking accounts helps you to build good relationships with banks. Since checking accounts allow you to withdraw money anytime, keeping your balance above zero, avoiding bounced checks, avoiding overdrafts and paying the necessary fees helps you create a good relationship with your financial institution.
  • Earn interest. Since checking accounts earn a small percentage of interest, then letting your money stay in your account for several months can earn you extra money.
  • Helps you receive direct deposit. Your employer or clients can pay you directly by depositing money in your bank account.
  • Easy access to your money. Checking accounts allow you to access your money easily via ATM withdrawals, writing of checks and online bill payments.


  • Low interest rates. Checking accounts offer low interest rates on the money in the account as compared to saving accounts, CDs, and IRAs.
  • Encourages misuse of money. Since a checking account allows easy access of money 24/7, it is easy to use the money for wrong purposes such as unnecessary online purchase of goods.

Bottom line

A bank account is crucial for savings or for keeping money for your daily expenses. Opening an account while you have poor financial records can be difficult and a second chance bank account may be the only option. However, some financial institutions do not use the ChexSystems and thus getting an account with them is easy. Bank accounts can be opened online or at physical branches.