Can I Open a Bank Account With Bad Credit?

In most cases, yes. In Canada, you can usually open a basic bank account even if you have bad credit or no credit history. Banks are more focused on your ID and eligibility than your credit score for day-to-day accounts like chequing or savings.

Where you might run into problems is if you’ve had serious past issues with an institution (like unpaid fees or fraud) or if the account comes with credit products attached (like overdraft).

How KOHO Helps

KOHO isn’t a bank—it’s a Canadian Financial Service Company—and it’s built to be more accessible for everyday people.

• With KOHO Essential, you get:

• More from your everyday spending, fee free¹

• A prepaid Mastercard® you can use for spending and budgeting

• Grow your savings with a 2% rate on your entire balance

• Built-in tools to help you track and manage your personal cash flow

And if you want to build your credit, you can add KOHO Credit Building:

• A small $10 monthly subscription that reports to credit bureaus

• No interest charged on the line used for credit building

• Helps you establish a positive payment history over time

• KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months²

So even if your credit isn’t where you want it to be, you can still manage your money and work on improving your score.

What Banks Look At When You Open an Account

For a regular chequing or savings account, banks and financial institutions usually care about:

• Valid ID and proof you’re in Canada

• That you’re not using the account for fraud or money laundering

• Any serious past issues with them or other institutions

Bad credit alone (like missed payments on a credit card or loan) generally doesn’t stop you from opening a basic account.

How to Make the Most of an Account With Bad Credit

If you’re opening or using an account while your credit is low:

• Keep your everyday spending in a no- or low-fee account

• Use a high interest savings account to build an emergency fund

• Consider credit-building tools, like KOHO Credit Building, to start improving your profile

• Pay every bill on time, even if it’s the minimum—payment history is a big part of your score

Over time, good habits with your money and payments can matter more than where you started.

^{¹Get Essential for free! Learn more}

^{²Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.}