12 Bank Accounts for Bad Credit with No Minimum Deposit

In our digital world, having a bank account is no longer optional. In fact, it’s quickly becoming a necessity, especially as many stores no longer accept cash.

Opening a bank account isn’t a big deal for most people. But, it can be a different story for consumers with a negative banking history. For example, you could be denied a bank account if you’ve had too many bounced checks, unpaid fees, negative balances, overdrafts, or closed accounts in the past.

If you find yourself in this situation, don’t despair. Some banks and credit unions are willing to work with you. You just have to be more strategic about finding them.

12 Banks Accounts for Bad Credit That Don’t Require a Deposit

In the past, most consumers opened checking accounts at banks or credit unions with physical locations. But this is no longer a requirement, and online banks offer many advantages over traditional banks.

Most online checking accounts come with no minimum balance requirements and no monthly maintenance fees. You may sacrifice some convenience, but it could be well worth it to find a better bank account.

Listed below are 12 bank accounts for bad credit with no minimum deposit requirements.

5 Bank Accounts for Bad Credit That Require a Small Deposit

These banks and credit unions will give you a checking or savings account even if you have poor credit. However, the following bank accounts for bad credit do require a small minimum deposit to get started.

Understanding Bank Account Requirements: Credit Checks vs. ChexSystems

While many people assume that opening a bank account will require a traditional credit check, most banks actually don’t consult the three major credit bureaus—Experian, Equifax, and TransUnion. Instead, they are likely to review your ChexSystems report, which provides a different kind of financial history.

Banks generally prioritize your banking behavior over your credit card payment history or credit score. They want to know how you’ve interacted with other financial institutions, rather than how you’ve managed revolving credit or loans.

Your ChexSystems report offers insights into various aspects of your banking history. It includes information on instances where you might have written bad checks, incurred negative account balances, or failed to pay account fees. These indicators help the bank assess the level of risk involved in offering you an account, making it a crucial step in the application process.

Reviewing Your ChexSystems Report

Just like a credit report, you are entitled to receive one free copy of your ChexSystems report each year. And if a bank or credit union turns you down based on information found in your report, you have a right to access that information.

It’s a good idea to check your ChexSystems report to look for any inaccuracies periodically. In addition, if you’re looking to open a checking account with bad credit, you may want to check to see if you’re in their database.

If you find negative information on your report, you can dispute it or wait five years until it is permanently deleted. However, either way, you may need to explore other options for now.

Fortunately, there are some banks that don’t use ChexSystems and other bad credit checking accounts options, like second chance checking accounts. You can open a checking account with these financial institutions even if you have a bad banking history.

Can I open a bank account with no money?

Yes, you can. Many banks and credit unions require a minimum deposit to open a basic checking or savings account. However, many of them don’t, including the ones we’ve listed above.

Additionally, some banks also offer deposit accounts without requiring a minimum balance. This means you are not required to maintain a certain balance or make regular deposits to keep the account active.

Online banks often have lower minimum deposit requirements and may offer sign-up bonuses or other incentives for opening an account.

It’s also worth noting that even if you don’t have money to deposit when you open an account, you can still add funds to it later. You can use direct deposit, electronic transfer, or even deposit cash at a bank, via mobile app, or at an ATM.

What to Look for When Choosing a Bank Account With Bad Credit

When choosing a bank account with bad credit, you should always spend some time shopping around for the right checking or savings account. Here are a few factors you should consider:

• Fees: Banks make lots of money by charging customers fees. Some of the most common fees to watch out for are minimum balance fees, overdraft fees, ATM fees, and foreign transaction fees. If a bank charges fees, that doesn’t mean you should immediately rule out banking there. But you do want to know what fees a bank is charging because there are usually ways you can get around paying these fees.
• Interest rates: You should know what interest rate your bank is paying you to do business with them. Keep in mind that these will change periodically depending on whether the Federal Reserve raises or lowers interest rates.
• ATM access: Consider the number and location of ATMs that are accessible with the account, as well as any fees associated with out-of-network ATM usage.
• Online and mobile banking: Look for a new bank account that offers easy and secure digital banking options, such as mobile check deposit and account management.
• Free debit card: Most checking accounts come with free debit cards. However, some banks and credit unions charge for them, or charge debit card replacement fees if you lose your card.
• Customer service: Consider the quality and availability of customer support, such as 24/7 phone support and online chat.
• Overdraft protection: Look for bank accounts that offer overdraft protection. This can help you avoid costly fees if you accidentally spend more money than you have in your checking account.
• Minimum deposit: Check if the bank account has any minimum deposit requirement. Some bank accounts may require a minimum deposit, while others don’t.
• Opening incentives: Some banks offer incentives for opening an account with them, like welcome bonuses, cashback, or discounts.
• Rewards program: Some bank accounts offer rewards programs, such as cash back on debit card transactions or discounts on certain products or services.
• Insurance: Check if the bank account is insured in the event of a bank failure by the FDIC for banks or NCUA for credit unions.
• Security features: Look for a bank account with advanced security features like multifactor authentication and biometric login.
• Ease of use: Consider the ease of use of the bank account, including the user interface of the bank’s website and mobile app. Also, consider the process for opening and managing the account.

Summary

In an era where financial inclusivity is gaining momentum, bad credit should not be a roadblock to accessing stable banking services. The options outlined in this guide prove that it’s entirely possible to open a bank account online with no deposit, even with bad credit.

These innovative banking solutions are designed to support you in rebuilding your financial health while providing all the amenities of a traditional bank. As you take this important step, always ensure to review the policies of each bank to find the one that suits your financial circumstances the best.

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.