Banks usually don’t check your credit when you apply for a business checking account.
Instead, many look at your ChexSystems report. That document lists things like bounced checks, overdraft fees and forced account closures. These events may make getting approved for a new account more difficult.
Some financial institutions don’t use ChexSystems for business checking applicants. (Although they may use similar products, like Early Warning Services.) Others offer “second chance” accounts to those with imperfect banking histories.
Here’s where to look for these business bank accounts, as well as how to work toward improving your ChexSystems report for the future.
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Do banks check your credit for business accounts?
In general, banks don’t perform a hard credit check when you apply to open an account.
Your credit report shows lenders your history of paying back debt on time and in full. For that reason, credit checks are most common when you’re applying for financing, like a business credit card or business loan. It’s less important for business checking accounts.
That said, some commenters in online forums like Reddit say banks have pulled their credit when they applied. This may be a “soft pull.” Banks are required to know who is behind business bank accounts. A soft pull is one way they can ensure you are who you say you are. It doesn’t affect your credit score.
A hard pull can temporarily ding your credit. A bank might do one of those if the account offers overdraft protection. This feature lets you spend beyond your balance, potentially via a linked line of credit.
What is ChexSystems?
ChexSystems is a consumer reporting agency that collects information about how you use your bank account. That might include:
- Forcibly closed accounts.
- Returned checks.
- Inquiries made about you in the past.
If you have negative marks in your ChexSystems report, a bank may deny your application. That’s the case even if that history is related to your personal accounts and not business accounts.
These records generally stay on your ChexSystems report for five years.
Business checking accounts with no ChexSystems
Not all banks use ChexSystems. That’s particularly true for online banks and neobanks.
These financial institutions told NerdWallet in 2025 that they don’t use ChexSystems for business checking accounts:
All three also said they don’t use a different data source to review applicants' banking history.
Interested in another bank? You can ask whether they use ChexSystems before you apply, but not all banks will answer. However, if you apply and get denied, that shouldn't result in additional negative marks on your ChexSystems report. You can just move on to a different bank.
Second chance business checking accounts
Second chance checking accounts are designed for people who have been denied a bank account due to a negative ChexSystems report.
These accounts are much more common for personal banking than for business banking. But here are the second-chance business checking accounts we could find:
Woodforest National Bank Second Chance Business Checking
- Bank locations: 743 branches across 17 states, primarily in the southeastern U.S. Cannot apply for an account online.
- Monthly fee: $15, plus a one-time setup fee of $15.
First Community Bank Fresh Start Checking
- Bank locations: Arkansas and Southern Missouri. Cannot apply for an account online.
- Monthly fee: $14.50.
- If your account is in good standing after 12 months, First Community Bank will convert it to a regular business checking account.
Your credit union or local bank may not officially offer a second chance business checking account. But they may be willing to work with you to open one. Talk to a banker about your options.
How to improve your ChexSystems report
ChexSystems retains a record of reported information for up to five years. Investing time to improve your report will benefit you and your business in the long run. Here’s what you can do:
Request your report. You’re entitled to a free copy of your ChexSystems report once every 12 months. Request the report on the ChexSystems website, by mail, phone or fax.
Identify any errors. Check your report for outdated information, misreporting or any other mistakes.
File a dispute if necessary. If you find errors on your report, you can file a dispute to have the ChexSystems record corrected.
ChexSystems allows you to file a dispute online, by mail or by fax. You can also file directly with the source of the information, like the bank or credit union, or have ChexSystems contact the source on your behalf to start the investigation.
When you file a dispute, include any documentation you have to support your correction. That might include bank statements or payment receipts to prove that you paid your bills on time.
Investigations are typically completed in 30 days. ChexSystems will notify you of the results by mail. If the investigation agrees that there’s inaccurate information in your report, ChexSystems is required by federal law to remove it.
Pay any debts. If your report shows money that you do actually owe — like overdrawn accounts or unpaid fees — pay those debts as soon as you can.
Ask creditors to update your record. Financial institutions are required to update your ChexSystems report after you’ve paid or settled your debt. To ensure that this happens as fast as possible, ask your creditors to update your file after you’ve paid your debts.
Alternatives if you’ve been denied a business account
Banks that don’t use ChexSystems and second chance accounts can help you get a business account. But if those aren’t options for you, here are some other ways to access business banking services:
- See what your payment processor offers. If you take payments through Square, you can open a Square Checking account. Shopify and QuickBooks have checking accounts, too. These accounts don’t have every banking feature (you can’t send wires from Square Checking, for instance), but can be a helpful starting point.
- Consider accounting or budgeting software. Similar to payment processing tools, some accounting software includes banking features. Wave, for instance, lets you send invoices and take payments. You can pay out funds directly to a debit card.
- Use a prepaid business debit card. These are usually designed for your employees, not as a replacement for a bank-linked debit card. But if you can’t open a business bank account, you could open a prepaid business debit card instead. Use that card for all of your business spending to help make bookkeeping easier. You can replenish it from your personal account as needed.
We don’t recommend using personal bank accounts for your business. In fact, if you read the fine print, lots of personal checking accounts say you can’t use them for business purposes.
You can check deposit account agreements to see what a bank’s rules are. If allowed, sole proprietors or independent contractors could use a personal account temporarily. But they should still keep their business spending separate. Setting up sub-accounts or opening an additional account may help with this.
If your business is an LLC or corporation, never use a personal bank account for your business. Your company is a legally separate entity. If the business ever fails, a clear separation protects your personal assets.
