Credit Check

• A bankruptcy can prevent you from obtaining a checking account if the bank requires a credit check before granting you an account. Some accounts come with a small line of credit to buffer against overdrawing on the account, so a bank may not want to grant an account to a high credit risk. However, if the bankruptcy was several years ago, your credit history within the past two years usually carries more importance.
  
  

ChexSystems

• The banks also use a separate company for tracking customers' banking history called ChexSystems. Bankruptcy does not go on a ChexSystems report, but if you owe money to a previous bank, such as a delinquent overdraft, you will have a negative notation on your ChexSystems report for five years. A single negative on your banking history can prevent you from obtaining a checking account.
  
  

Considerations

• About 80 percent of banks use ChexSystems, so you can find a bank that won't perform a check on your credit or banking history, especially credit unions and local banks. You can talk to a banking officer personally, who may approve you for an account even with poor credit or banking history if your business might be worth the risk to the company. However, bank managers review ChexSystems overrides, so you must make a strong case, such as having a steady job.
  
  

Alternative

• If you cannot find a checking account, consider a prepaid or stored value card, suggests the Federal Reserve Bank of New York. You can reload funds to the card, but you might have to pay processing fees to use and load the card with money. Also, prepaid cards usually offer fewer protections for consumers, such as replacing lost or stolen funds. Some prepaid cards build credit history with alternative credit bureaus.