Megan Brooks
When it comes to opening a bank account, individuals often wonder about the impact on their credit score, specifically whether the bank will perform a hard pull or a soft pull. A hard pull, or hard inquiry, involves the lender pulling your credit report from a major credit bureau, which can cause slight fluctuations in your credit score. In contrast, a soft pull or soft inquiry does not impact your credit score. Ally Bank, an online-only financial institution, has sparked discussions among prospective customers regarding the nature of its credit inquiries during the account opening process. Some individuals have expressed concerns about potential hard inquiries, while others have received conflicting information from bank representatives. This topic is particularly relevant as individuals consider their banking options and the potential impact on their financial standing.
| Characteristics | Values |
|---|---|
| Does a hard pull | No |
| Does a soft pull | Yes |
| Does a credit check | Yes |
| Does a hard credit check | Only for auto loans or home mortgages |
| Does a soft credit check | Yes |
| Type of accounts | Spending Account, Savings Account, CD, Money Market or IRA |
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What You'll Learn
Opening a checking account
To open an account online, you must first select the type of account you want to open, such as a Spending Account, Savings Account, CD, Money Market, or IRA. After selecting the desired account type, you will need to provide your personal information and choose your preferred terms and funding options. Once your application is approved, you will receive a confirmation email.
If you prefer to apply over the phone, you can call Ally Bank's 24/7 customer service line at 1-877-247-2559.
It is worth noting that while most banks do a soft pull on your credit report, some banks may perform a hard pull, especially if you opt for additional services such as overdraft protection. Therefore, it is always a good idea to review the bank's policies and procedures before opening an account.
Additionally, when opening an account with any bank, including Ally, you will need to provide a signature card. This card identifies you as the owner of the account and allows the bank to conduct everyday banking business on your behalf. Federal law requires banks to verify the identity of account openers and keep this information on file.
Ally Bank also offers convenient methods for transferring funds into your new account, such as online transfers, eCheck deposits, wire transfers, and mailing a check.
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Opening a savings account
To open an account, you'll need to provide your personal information and choose the terms and funding options that suit you. As part of the account review process, Ally Bank will run a credit check to verify your identity and protect you from online fraud. However, this will only be a soft credit inquiry, and it won't impact your credit score.
Ally Bank offers a range of features with their savings accounts, including tools to help grow your money faster, such as digital envelopes and savings buckets. Their savings accounts also have competitive, variable rates and no monthly maintenance fees. You can add money to your savings account in several ways, including transferring money from another bank or an Ally Bank account, depositing a check using the Ally eCheck Deposit service, or setting up direct deposit with your employer. It's important to note that there is a limit of 10 withdrawals per statement cycle for savings accounts.
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Applying for a home mortgage
Ally Bank's mortgage options cater to prospective homeowners who prefer a streamlined digital application process. The bank's low down payment requirements can make buying a home more feasible for those who don't have a large enough down payment saved up. Additionally, eligible borrowers can benefit from discounts and grants, such as a $500 cash bonus after opening an Ally Bank account and closing a home loan, provided they meet certain requirements.
It's important to note that while Ally Bank does not charge origination fees, there are closing costs associated with their loans, typically ranging from 2% to 5% of the loan amount. These costs cover items like the title search fee and the expense of pulling your credit report.
When applying for an Ally Bank home loan, it's essential to be aware that it may temporarily affect your credit score. The lender will conduct a hard credit inquiry as part of the application process, which becomes part of your credit profile. However, you can get prequalified online, which involves only a soft credit pull that does not impact your score.
Ally Bank's mortgage products are no longer available as of 2025, so this information is based on their previous offerings. If you're considering a mortgage with Ally Bank, it's important to stay updated with their latest offerings and any changes to their policies.
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Applying for an auto loan
Once you've found a lender that suits your needs, you can start the application process. If you're applying for an auto loan with Ally Bank, there are a few things to keep in mind. For refinancing, you can apply directly through Ally's website, and a soft credit check will be performed, which won't affect your credit score. However, if you're applying for a new or used vehicle loan, you'll need to visit a dealership that offers Ally financing.
When you're ready to apply, make sure you have all the necessary documentation ready, including proof of identity and income, such as your driver's license and pay stubs. You may also need your car's registration and proof of insurance. During the application process, the lender will conduct a hard inquiry or hard pull to access your credit report and determine your creditworthiness.
It's important to note that having multiple hard credit inquiries within a short period can negatively impact your credit score. However, credit bureaus typically count multiple inquiries within a 14-day timeframe as a single inquiry. Therefore, if you're shopping around for financing, it's best to do so within a short window to minimize the impact on your credit score.
After your application has been submitted, the lender will review it and determine whether to approve your loan based on their lending standards. If approved, the lender will provide you with a loan offer outlining the terms, interest rate, and repayment structure. Carefully review the offer, ask any questions you may have, and if you find it acceptable, formally accept it by signing the necessary documents.
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Prequalifying for a credit account
When it comes to prequalifying for a credit account, it's important to understand the difference between a soft credit pull and a hard credit pull. A soft credit pull, also known as a soft inquiry, is a check of your credit report that does not impact your credit score. This is often used by lenders to prequalify you for a credit account or to provide you with promotional offers. On the other hand, a hard credit pull, or hard inquiry, is a more thorough review of your credit report that can temporarily lower your credit score. This type of pull is typically done when you officially apply for a credit account.
In the case of Ally Bank, there is some conflicting information about whether they perform a hard or soft credit pull for prequalifying for a credit account. Some sources indicate that Ally Bank does perform a hard credit pull, especially when applying for credit cards like the Ally Platinum Mastercard®. This hard pull can result in a slight decrease in your credit score but only lasts for a short period. However, other sources suggest that Ally Bank may only do a soft credit pull for prequalification, which does not impact your credit score. This is specifically mentioned in the context of their auto loan refinancing process.
It's worth noting that some users have reported receiving a notice from Experian after opening a checking and savings account with Ally Bank, indicating a hard credit inquiry. Additionally, for mortgage pre-approval letters, Ally Bank is known to perform a hard credit pull, unlike some other lenders who may only do a soft pull.
To make an informed decision, it is always advisable to review the terms and conditions provided by Ally Bank for the specific credit account you are interested in. Understanding their credit inquiry practices will help you assess the potential impact on your credit score during the prequalification process.
Lastly, while prequalifying for a credit account is an important step, it's also crucial to consider other factors such as interest rates, fees, and the overall suitability of the credit product to your financial needs and goals. Comparing offers from multiple lenders can help ensure you make the best choice.
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Frequently asked questions
No, Ally Bank does not do a hard pull when someone applies for a checking or savings account. However, they do run a credit check as part of the application process to verify your identity, protect you from online fraud, and comply with federal regulations.
Ally Bank does a hard pull when you apply for credit, such as a home mortgage or auto loan.
A hard pull, or hard inquiry, is when a lender pulls your credit report from a credit bureau. Hard inquiries can cause your credit score to fluctuate slightly.
A soft pull, or soft inquiry, does not involve pulling your credit report and does not impact your credit score.
