Hard pull on opening a checking account?

[Anonymous]

I was reading in the fine print yesterday in regard to opening a checking account at Wachovia bank that they routinely pull a credit report when you open a new checking account with them. Is this a hard pull? Why would it be necessary to pull a credit report to open a checking account?

[Boldilocks]

We've moved to a new part of the state and have opened 3 new accounts.

First was BoA and we thought it would be close to where we would be living, but we ended up moving to a different town with no branches there.

2nd was a bank that is very handy and can be walked to - they have late andweekend hours, but they don't do savings and don't routinely give loans.  As we are looking for a mortgage and a new car in the next year, that doesn;lt work for us. 

The 3rd was a credit union account that we opened yesterday, savings and checking and they do loans at good rates, but they don't stay open very late.

Anyway - all 3 pulled our reports!  Don't know why they do, but they do!

[Anonymous]

When I moved downstate and opened a new checking account they pulled my credit.   I don't know if it was hard or not since I was in denial then but probably hard.   They said they wouldn't want me to have a checking with them because I had a charge off but were willing to overlook it because they wanted my boss's business and was hoping I would sway him over to them. 

A checking account can cost a bank a lot of money if you bounce a lot of checks.  That is a lot of fees (your banks charge plus the other persons charge is easily another $50 on top of the check itself).  They want to see what kind of risk you are.

[nothingman02]

Debated topic. IMO there is a PP for opening a checking a/c.

[203bravo]

I agree that there is PP when opening an account - for 2 reasons.  1st they are required by law to establish ID with the Anti Terrorist laws, 2nd they are assuming some liability when opening a checking account.  (in the event their policies are to "help" you out in the event of an OD - they "front" you the money so your check isn't returned to the merchant and they charge you a fee to do so,, yep their way of trying to rack up charges)

Usually, you sign for the account authorizing the pull.  That being said - every account I've opened in past 2 years or so (IRAs, checking, savings, and MMA) were all soft pulls.

[Boldilocks]

We never signed anything authorising them to pull.  I know that because we opened the account on Tuesday afternoon and actually neither of us signed a single piece of paper.  On Wed's report the pull showed up - it wasn't until I went back yesterday that I actually signed one piece of paper on the account.  There wasn't any small print on that either - just our contact info and that we were opening an account.

Bit sneaky, but it's a smallish credit union and the lady gave my toddlers pops and told me how to get the red food dye out of clothes, so there's no point in moaning about it, LOL.

[Anonymous]

Here is something I found on the web. @creditbloggers

Bank of America - ChexSystems review only.

Citibank - They do check credit reports but it is recorded as a soft inquiry.

Chase - ChexSystems review only.

Wachovia - They do check credit reports and it is recorded as a hard inquiry.

Wells Fargo - They do check credit reports and it is record as a hard inquiry (although the representative told me at one point that "there is no difference" between a hard and soft inquiry).

Washington Mutual - ChexSystems review only for branch and online applications. No record review for phone applications.

HSBC - ChexSystems review only.

SunTrust - ChexSystems records and Beacon Scores are used for review. Does count as a hard inquiry.

US Bank - ChexSystems review only.

Citizens Bank - ChexSystems review only.

Interesting read.

Edited to remove live link --- sidewinder

Message Edited by sidewinder on 05-14-2009 10:34 AM

[Boldilocks]

IDK - we had BoA do a hard pull (EX) on 3/23 and HSBC do a hard pull (EX) on 2/11 when we opened accounts. 

[Anonymous]

  This article was a couple years old things may have changed since then but it was interesting nonetheless.  I know my bank says on the "jumpstart application" to open an account online that it will be accessing your credit report.  It did not do a pull when I opened a new savings account and linked it to my existing checking account but it will with a new account.   I have banked there for almost 15 years that may have contributed to my not needing a check for the savings account.  

I don't know how big banks work.  I have always used my community banks.  My current bank has 3 branches in my area.. and maybe 8 in my whole state (granted I'm in Delaware and it's not that big of a state)

[nothingman02]

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@203bravo wrote:

I agree that there is PP when opening an account - for 2 reasons.  1st they are required by law to establish ID with the Anti Terrorist laws, 2nd they are assuming some liability when opening a checking account.  (in the event their policies are to "help" you out in the event of an OD - they "front" you the money so your check isn't returned to the merchant and they charge you a fee to do so,, yep their way of trying to rack up charges)

Usually, you sign for the account authorizing the pull.  That being said - every account I've opened in past 2 years or so (IRAs, checking, savings, and MMA) were all soft pulls.

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If you are reffering to the Patriot act, I dont believe they can pull the CBRs for that so that they can eastablish the applicant's identity. The applicant bascially swears that the information is accurate and that is that. 

They may be extending credit with a chekcing a/c in situations where it might be overdrawn but again theres room for argument there.