Published by the Modern Lending Solutions editorial team. Last reviewed: .

Short answer: if a bank or credit union turned you down, the reason may be a checking account report. The CFPB says you “may have been unable to open a checking account because a checking account reporting company has negative information in its files about your checking history” (CFPB). You can get the report free, dispute errors, and ask about lower-risk accounts. This is general information, not legal advice.

What a checking account report is

  • Banks and credit unions supply information about your checking history to checking account reporting companies, which turn it into reports (CFPB).
  • Banks and credit unions use these reports to help decide whether to offer you a checking account and which type (CFPB).
  • Some banks and credit unions also use, or instead use, your traditional credit reports (CFPB).

Get your report free

  • Nationwide checking account reporting companies must provide one free report per year on request, and you request it from each company separately (CFPB).
  • If a bank denies you based on a checking account report, it must give you an adverse action notice with the name and contact information of the reporting company, and you can request a free report (CFPB).
  • The CFPB publishes a list of consumer reporting companies, including checking account reporting companies, with how to request your reports (CFPB list).

Dispute errors

The CFPB says: “If you find an error in your checking account report, contact the company to dispute it in writing.” It adds that all checking account reporting companies must investigate disputes of inaccurate information and correct it, and that the banks and credit unions that report information also have to investigate and correct disputed information (CFPB). Under the Fair Credit Reporting Act, a reporting company generally has 30 days from receiving your dispute to finish its reinvestigation (15 U.S.C. 1681i). For a step-by-step dispute, see how to dispute a loan reporting error.

How long information stays

  • The CFPB says checking account reporting companies must follow the FCRA and cannot include most negative information that is more than seven years old (CFPB; 15 U.S.C. 1681c).
  • ChexSystems, one checking account reporting company, says its “current practice is to retain record of reported information for a period of five years from the report date unless the source of the information requests its removal” or the law requires removal (ChexSystems FAQ).
  • Paying what you owe does not erase an accurate report: ChexSystems says the furnisher must update the status to paid in full or settled in full, but the reported account information will remain on file (ChexSystems FAQ).

Lower-risk and second-chance accounts

The CFPB suggests asking the bank or credit union whether it has steps you can take to open an account, or offers lower-risk accounts, and trying another institution if not (CFPB). Each bank or credit union sets its own policy on how your report affects opening an account, and some require you to pay old unpaid charges and fees first (CFPB). The CFPB also says banks and credit unions offer checking accounts and prepaid cards designed to reduce risks for you and the institution (CFPB).

If you need a loan without a bank account

See personal loan without a bank account for how funding and repayment work when you do not have a checking account.

Checklist

  • Read the adverse action notice for the reporting company name.
  • Request your free checking account report from that company.
  • Dispute any error in writing and keep copies.
  • Pay or settle old unpaid fees if the bank requires it.
  • Ask about lower-risk accounts, or try another bank or credit union.

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Sources

  1. CFPB: Why was I denied a checking account?
  2. CFPB: List of consumer reporting companies (2025, PDF)
  3. 15 U.S.C. 1681i: procedure in case of disputed accuracy (credit bureau reinvestigation)
  4. 15 U.S.C. 1681c: information excluded from consumer reports (seven year limit)
  5. ChexSystems: Answers to frequently asked questions (read October 30, 2026)

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.