Under the requirements of the Patriot Act, all banks must run an identity check on any new customer. They use "customer identification programs" (CIP) that compare your name, address, date of birth, and other facts to the information contained on your credit report. Your credit score will not be affected by that step.
The CIP regulations require institutions to implement reasonable procedures for:
Banks also review ChexSystems, as well as credit report data during the process of determining whether a customer qualifies to open a new account. Under FCRA regulations, the bank has to have a permissible purpose such as "intend[ing] to use the information in connection with a credit transaction involving the consumer" in order to pull a credit report and must obtain the consumer’s consent first. A hard inquiry like this could cause a small credit score ding.
Check Your Credit Score
Keep track of your financial health by checking your credit score for free once annually by visiting www.annualcreditreport.com. The federal government requires that each of the three national credit-reporting agencies - Experian, Equifax, and TransUnion - give you a free credit report every year. Consider staggering the receipt of each of your credit reports to get a better picture of your credit as a whole.
Struggling to manage your credit? Explore our Credit Counseling options for professional assistance. Take control of your financial security today!