Savings accounts are usually a safe place to park cash. You earn a bit of interest, and your funds are insured against loss by the FDIC for up to $250,000. Banks offer different perks, and you might come across a new bank with convenient features and wonder about opening a new account.
Unlike applying for a new credit card, opening a savings account usually won’t impact your credit. Read on to find out your banking options and what might affect your credit score while searching for a savings account.
Do banks pull your credit to open a new account?
A credit check, also known as a credit inquiry or credit pull, is a way for financial institutions to access your credit report. Your credit report provides valuable information on your previous loan and payment history.
Two main types of credit checks can occur when opening a new checking or savings account – a soft credit pull and a hard credit pull. While some banks may perform a credit check during account opening, MoneyLion does not.
Soft credit pull
Soft credit pulls are usually for informational purposes only and commonly generated by employers, landlords, or utility providers. A cable company may use a soft credit check to determine your required deposit size before turning on cable. When lenders pre-screen you for a credit card, they may do a soft pull before inviting you to apply. Checking your own credit report for errors is also a soft pull.
If banks do a credit check when opening your savings account, it will likely be a soft credit pull. It acts as a background check for identity verification and doesn’t affect your credit score. MoneyLion doesn’t even need a soft credit inquiry to open your account.
Hard credit pull
Hard credit pulls are an official credit inquiry to determine eligibility for new credit. When you apply for a mortgage, new credit card, or most loans, the financial institution will perform a hard inquiry. You’ll want to avoid having too many hard credit pulls, because the number of checks factors negatively into the FICO credit scoring model. According to FICO, a hard credit check can lower your score by up to 5 points.
Is having good banking history important
When you apply for a loan, credit card, mortgage, or apartment rental, lenders often want to see your banking history along with income. Mortgage applications in particular require a closer look at your assets, and lenders can check your bank statements before approval. A solid banking profile shows that you can repay borrowed money.
Can I open a new bank account virtually?
Even as we’ve moved into an increasingly digital and remote-first world, some banks still require your physical presence to open an account at a branch. You can mask up, make an appointment, and spend 20 minutes filling out paperwork.
Sign up online and get approved in minutes. You get immediate access to a safe virtual debit card and cashback rewards on everyday spending. Waiting for the next paycheck? Get paid up to 2 days early when you deposit paychecks with direct deposit.
Could I qualify for a small loan from my bank without any credit?
If this is your first rodeo with bank accounts, you probably have little to no credit history. Without a credit history, you might not qualify for traditional bank loans without a cosigner. How do you start building credit?
A MoneyLion Credit Builder Plus Membership helps you build or rebuild credit. For $19.99/month, you get powerful benefits like access to a loan of up to $1,000, credit monitoring tools, 0% APR Instacash advances, activity-based cashback rewards, and refunds on RoarMoney and Investment account fees.
During your membership, you can qualify for a loan of up to $1000 loan with no hard credit check. You’ll receive a part of the $1000 loan upfront, with the rest held in an interest-earning Credit Reserve Account.
We’ll report your payment history to the three main credit bureaus every month as you repay your loan. With on-time payments, you can boost your credit score and build a credit history. The membership makes it possible to borrow and establish credit even with troubled credit.
Secure and safe accounts from MoneyLion
Having a solid banking history comes in handy when applying for other products like a mortgage or credit card. As you search for feature-rich accounts, sifting through all available bank accounts can be overwhelming.
There are bank accounts for college students, new borrowers, and businesses. Opening a new bank account is fairly simple when it’s virtual. Just be aware that banks may perform a soft credit pull when you apply for a savings account, though it should not impact your credit score.
RoarMoney allows you to bank smart with cashback rewards, mobile pay, expense tracking, and more. Your safety and security are prioritized with tools like fraud protection, instant debit card lock from the mobile app, and virtual debit cards.
Meet your bank account needs easily with MoneyLion.