Crediful is committed to helping you make smarter financial decisions by presenting you with the best information possible. We are able to present this information to you free of charge because some of the companies featured on our site compensate us.
Compensation may impact how and where products appear on this site, including the order in which they may appear within listing categories.
While Crediful does not feature every company, financial product, or offer available, we are proud that the information, reviews, guides, and other tools found on our site are entirely objective and available to you free of charge.
Our #1 priority is you, our reader. We will never ever recommend a product or service that we wouldn't use ourselves. Our reviews are based on independent research.
What does this mean for you? It's simple: we will never steer you in the wrong direction just because a company offers to pay us.
Second Chance Checking Accounts: 200+ Banks Offering a Fresh Start
If you’ve ever found yourself unable to open a bank account due to past credit or banking history, you may want to look into a second chance bank. Second chance checking accounts are designed to give people with bad credit, a ChexSystems, or EWS record a second chance.
These accounts give consumers who have a negative banking history a second chance to prove that they can manage their accounts responsibly. But, of course, some banks and credit unions offer better terms than others. So, we’ve done the research to find the best options available for you.
Best Second Chance Checking Accounts
Here are the top second chance banks and credit unions for you to consider. If you don’t find one you like, we also have over 200 regional banks and credit unions listed below.
U.S. Bank is currently welcoming new applicants in 26 U.S. states with a special online offering:
Earn up to $450 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account online and complete qualifying activities. Subject to certain terms and limitations. Offer valid through November 30, 2023. Member FDIC.
Applicant must reside in AZ, AR, CA, CO, ID, IL, IN, IA, KS, KY, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SD, TN, UT, WA, WI, WY to be eligible for checking account.
The account itself provides various benefits, including a complimentary debit card that can be locked or unlocked if ever misplaced or stolen. There are no ATM transaction fees at U.S. Bank ATMs and no surcharge fees at over 40,000 MoneyPass Network ATMs.
The checking account requires a $25 opening deposit and a $6.95 monthly fee. This fee can be waived for those 24 and under, 65 and over, or military members.
Additionally, the fee can be waived with monthly deposits of $1,000+, an average balance of $1,500+, or holding an eligible U.S. Bank credit card. Qualifying for any Smart Rewards™ tier (Primary, Plus, Premium, or Pinnacle) also waives the fee.
With the SoFi Checking and Savings account, you won’t have to worry about being charged any overdraft fees, minimum balance fees, or monthly fees.
For a limited time, customers can earn a bonus of up to $250 when they make qualifying direct deposits. This is in addition to the access SoFi provides to more than 55,000 Allpoint® Network ATMs.
You can also enjoy the convenience of receiving your paycheck up to 2 days in advance with SoFi’s early direct deposit feature.
SoFi stands out with its competitive annual percentage yield (APY) – a rewarding 4.60% on savings and 0.50% on checking balances, all with direct deposits. There’s no minimum direct deposit amount necessary to qualify for this rate.
The benefits continue with SoFi debit card users, who can avail up to 15% cash back at local venues. This bonus provides a further incentive to use SoFi’s diverse banking services.
Chime® is an online-only banking option with no minimum opening deposit, monthly fees, minimum balance requirements, or foreign transaction fees.
With a Chime Checking Account, you’ll have the added benefit of using your Visa debit card to access more than 60,000 ATMs without incurring any fees. These ATMs are conveniently located at various places, including Walgreens, 7-Eleven, CVS, and other similar locations.
Chime also offers a high-yield savings account that earns an APY of 2.00%3. The Chime Savings Account has a much higher rate than what most traditional banks offer.
In addition, Chime banking services are provided by The Bancorp Bank or Stride Bank, N.A. Member FDIC, so your money is safe and insured.
Current is one of the fastest-growing mobile banking solutions in the U.S., with over one million members.
However, Current is a financial technology company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit report.
Current has a feature called Current Build that allows you to build your credit just by using your debit card for day-to-day transactions. No borrowing is necessary, and there are no credit checks.
Some features of the Current mobile bank account include free overdraft protection, free cash withdrawals at 40,000 Allpoint ATMs, and no minimum opening deposit or hidden fees. You can also earn up to 4% APY on savings.
You can get paid up to two days early with direct deposit. And you earn up to 15x points and cashback on debit card purchases at participating merchants.
GO2bank, a neobank created by Green Dot, is a fintech company that offers a range of innovative financial services. Its checking account comes with savings subaccounts known as vaults, with no minimum balance required to open an account online.
GO2bank offers a high yield of 4.50% APY on savings accounts up to $5,000. With 90,000 retail locations for cash deposits and 19,000 fee-free ATMs, it’s easy to access your money whenever you need it.
You can also get your pay up to 2 days early with direct deposit, and government benefits up to 4 days early. Overdraft protection up to $200 is available with opt-in and eligible direct deposits. Plus, you can build your credit over time by using the GO2bank Secured Visa Credit Card responsibly.
The monthly fee is waived when you receive a payroll or government benefits deposited in the previous monthly statement period. Otherwise, it’s $5 per month. GO2bank is a convenient and affordable way to manage your finances.
6. Chase
Chase is one of the most popular banks in the U.S. And now, they offer an account called Chase Secure Banking with no credit check, no ChexSystems, and no overdraft fees.
Account holders also get access to over 16,000 ATMs for free, free online bill pay, and free money orders and cashier’s checks.
With 4,700 locations across the country, this is an excellent option for anyone who prefers having access to physical branches.
Opening a Chase Secure Banking account comes with a $100 cash bonus when you use the card for 10 purchases within 60 days.
Account approval is immediate, and you’ll receive your debit card within days. There is a small monthly fee of $4.95. However, there is no minimum opening deposit to get started.
7. Walmart MoneyCard
The Walmart MoneyCard is a prepaid debit alternative to traditional checking accounts. It offers up to 3% cash back on Walmart.com, 2% at their fuel stations, and 1% in-store, capping at $75 yearly. Users can access overdraft protection up to $200 with appropriate opt-in and direct deposits.
The ASAP Direct Deposit feature enables early salary and benefit receipt. The card also grants a 2.00% APY on savings and monthly cash prize opportunities. The $5.94 monthly fee is waived with a prior month’s direct deposit of $500 or more.
8. Albert
Albert is a cutting-edge online fintech banking platform that doesn’t require a minimum deposit to open an account. When you join, you’re instantly provided with a complimentary Mastercard debit card that comes with attractive cashback rewards.
The “Ask a Genius” feature in the Albert app offers round-the-clock assistance for any financial questions you might have. For added convenience, when you set up direct deposit, you can receive your paycheck up to two days in advance.
As a Genius subscriber, you gain access to over 55,000 ATMs for fee-free withdrawals. A minimum account balance is not required, and there are no monthly maintenance fees. Plus, you can rest easy knowing your funds are secured and insured up to $250,000 through FDIC protection.
9. LendingClub
LendingClub, formerly Radius Bank, is an excellent online bank due to its high interest rates and mobile banking app. The lender offers a no-fee checking account and a high-yield savings account. It’s available in all 50 states, and you can open a new account online with just $10.
10. Capital One 360
While Capital One 360 doesn’t specifically offer second chance checking accounts, they present a viable alternative for those with a poor banking history. Capital One doesn’t review your ChexSystems report when you apply.
The perks of a Capital One 360 account include online and mobile banking capabilities and a free debit card, all with no monthly fees. You also don’t need to make a minimum deposit to activate the account.
For those who need to send money to friends or family, the account is compatible with the Zelle app. Additionally, Capital One 360 offers access to an extensive network of more than 70,000 ATMs nationwide.
11. Memory Bank
You can open a new checking account at Memory Bank with a minimum deposit of just $50. This second chance checking account comes with an $8.95 monthly fee, but you can reduce it to $6.95 by meeting certain criteria. In addition, Memory Bank gives its customers access to over 85,000 free ATMs and a free mobile app.
12. Wells Fargo
The Wells Fargo Clear Access Banking account is a great option for customers that don’t qualify for a traditional checking account. It’s designed for college students and those with lower bank account balances.
With Wells Fargo, you get access to the mobile app and online banking, so you can monitor your balance.
You’ll need $25 to set up the Wells Fargo Clear Access Banking account, and there is a monthly fee of $5. However, the monthly fee can be avoided waivable if the primary account owner is between the ages of 13 and 24.
13. Bank of America
Bank of America offers a second chance bank account called SafeBalance. It’s a checkless checking account that is designed to be flexible. It comes with a debit card that you can use to make purchases and withdraw cash. Account holders can also use the mobile banking app to transfer funds and deposit checks.
There’s a monthly fee of $4.95, and you can set up the checking account with as little as $25. It’s a great option for college students and anyone who maintains a lower account balance.
American Airlines Credit Union
American Airlines Credit Union offers various checking and savings accounts, including their Ascend Checking that has no monthly fees. These bank accounts are a suitable option for anyone looking to rebuild their banking history.
And if you sign up now, you’ll be eligible for a promotion the credit union is offering. You could earn $50 when you open a new checking account and meet certain requirements, such as qualifying direct deposit and debit card purchases.
Bank OZK
When you open a second chance checking account with Bank OZK, you’ll get a free debit card and access to mobile and online banking. You can open a Pathway Checking account with a $50 minimum opening deposit, and the monthly fee is $10.
This checking account is a non-interest bearing account. Bank OZK has branch locations in AL, AR, FL, GA, NC, NY, SC, and TX.
Bok Financial
Headquartered in Tulsa, OK, Bok Financial has branches in AZ, AR, CO, KS, MO, NM, OK, and TX. They offer Opportunity Banking, a second chance checking account designed to give you a fresh start from past financial challenges.
There’s a $10 monthly fee or $5 with a qualifying direct deposits of regular monthly income of at least $300 per statement cycle deposited to your account. In addition, a BOK checking account gives you free access to 32,000+ MoneyPass ATMs nationwide.
Centennial Bank
If you live in Alabama, Arkansas, Florida, or New York, you can open a second chance checking account with Centennial Bank. The account is called Opportunity 100 Checking. You’ll need to deposit at least $100 to get started, and the monthly fee is $9.95 with direct deposits.
City National Bank
City National Bank is available to customers in Kentucky, Ohio, Virginia, and West Virginia. They offer a second chance checking account with no minimum monthly balance, called Bounce Back.
There is a monthly fee of $8.99. However, you can lower the fee to $6.99 by setting up a direct deposit. And your first two non-sufficient funds fees will be waived.
Fifth Third Bank
Fifth Third Bank offers a wide variety of checking accounts, including Express Banking. There are no credit requirements to open the checking account, and you can get discounted fees of up to 50% on certain services. However, you can’t write checks or deposit a check at ATMs.
HomeStreet Bank
You can open a checking account with HomeStreet Bank with just a $50 minimum opening deposit to get started. There are no monthly minimum balance requirements and no monthly fees. The account is available to customers in California, Idaho, Oregon, Utah, and Washington.
Hope Credit Union
Hope Credit Union is available to customers in Arkansas, Louisiana, Mississippi, and Tennessee. You’ll need $25 to fund the second chance checking account, and there’s a monthly service fee of $9.95. However, the monthly fee will be waived by maintaining a balance of $200 or more.
InTouch Credit Union
InTouch Credit Union is available in Michigan, Nevada, Tennessee, Texas, and Virginia. You can become a member by opening a savings account with just $5. Then, with a minimum deposit of $50, you can establish a checking account.
OneUnited Bank
You can open a second chance checking account at OneUnited Bank with just $50, and you’ll gain access to free mobile and online banking. In addition, you can deposit checks and view your balance through the mobile app.
The OneUnited Bank checking account is available to customers in all 50 states, and they even have branch locations in California, Florida, and Massachusetts. If you don’t live in a state that has a branch location, you can still take out cash at one of their 30,000 ATMs.
Simmons Bank (Formerly Landmark Bank)
Simmons Bank recently acquired Landmark Bank, a bank with locations in Missouri, Oklahoma, and Texas. Simmons Bank offers an Affordable Advantage checking account for customers with low monthly balances.
You can activate the account with $25, and there’s a $5 monthly service fee. However, account holders won’t be able to write checks with this account.
Staley Credit Union
Staley Credit Union works with customers in Illinois, Indiana, and Tennessee. They offer second chance checking accounts that come with a $7 monthly service fee. There’s also a $50 minimum opening deposit.
Woodforest National Bank
Woodforest National Bank has over 700 branches in 17 states across the U.S. You can open a second chance checking account with $25 and a one-time account set up fee of $9.95. If you set up a direct deposit, they will reduce the monthly fee to $9.95.
Across the United States, local banks and credit unions in almost every state offer second chance checking accounts. These specialized accounts are designed to give individuals a fresh start and the opportunity to rebuild their financial standing.
Most banks will look at your ChexSystems report when you apply to open a new checking or savings account. Financial institutions use this report to check if you’ve overdrawn or closed deposit accounts without reconciling unpaid negative balances.
Banks and credit unions can deny your application for a new bank account if they determine you are a financial risk. Unfortunately, not having access to a checking account can cause financial problems for many people.
Paying in cash or relying on prepaid cards to manage daily transactions just isn’t feasible for most people. Furthermore, doing things like paying your mortgage or making major purchases can be inconvenient without a bank account.
Second chance checking accounts offer you an opportunity to access basic banking services and improve your banking history. They offer more lenient terms and often have a low minimum opening deposit.
Why should I open a second chance checking account?
Your ChexSystems report may reflect several negative marks if you’ve struggled with overdrafts, bounced checks, and unpaid fees in the past. Unfortunately, being in ChexSystems or Early Warning Services (EWS) can prevent you from opening a checking account with certain financial institutions.
Not having access to a bank account can cause financial problems for many people. It can be challenging to pay your bills, and relying on cash or prepaid debit cards is unrealistic for most people. That’s why a second chance checking account can be so beneficial.
A second chance bank account allows you to rebuild your banking history. However, these bank accounts for bad credit may have certain restrictions. But, if you can keep your account in good standing, you may be able to switch to one with more favorable terms in the future.
What should I do if my checking account application was denied?
If you’ve recently been turned down when applying for a checking account, it could be due to past banking issues. ChexSystems is a consumer reporting agency that keeps a record of negative banking history for up to five years.
Unfortunately, the banking industry varies greatly when it comes to second chance checking accounts. Some banks don’t offer second chance bank accounts. They view consumers with poor ChexSystems reports as too much of a liability.
Other banks and credit unions offer second chance bank accounts, but limit their financial liability by placing heavy restrictions on the accounts. For instance, you may have to pay a monthly fee.
If you were denied a bank account due to a negative banking history, it’s best to find a bank or credit union willing to work with you. Look for one that either doesn’t use ChexSystems or offers a second chance bank account.
Second Chance Banking: Fees, Charges, and What to Expect
Second chance banking offers a lifeline for those who have been denied regular checking accounts due to past financial mistakes. While this is a valuable resource for getting back on track, it’s essential to understand the financial commitments involved, specifically regarding fees and charges.
Account Maintenance Fees
One of the most common fees you’ll encounter with second chance bank accounts is a monthly maintenance fee. Unlike traditional bank accounts, which may offer fee waivers based on certain conditions, these account fees are usually non-negotiable and serve as a cost for the risk the bank or credit union takes on you.
Overdraft Fees
Most second chance bank accounts do not offer overdraft protection. However, if the account does allow for some overdrafts, expect hefty fees for each occurrence. It’s essential to monitor your account balance closely to avoid these charges.
Minimum Balance Requirements
Some second chance accounts may require you to maintain a minimum account balance to keep the account open or avoid additional fees. Failure to meet these requirements often results in extra charges, so make sure to read the terms and conditions carefully.
ATM and Transaction Fees
Since second chance bank accounts often limit the services you can access, ATM and transaction fees can also be higher than standard bank accounts. This may include fees for using ATMs outside the bank’s network, as well as fees for certain types of transactions.
Application and Setup Fees
Certain financial institutions might charge an initial application or setup fee for second chance banking. While not all financial institutions impose this charge, be prepared for this potential upfront cost.
Penalties for Early Closure
If you decide to close your second chance account prematurely, there might be a penalty involved. This fee serves as a disincentive for bank account turnover and encourages users to continue a stable banking relationship.
What to Expect Moving Forward
The goal of a second chance banking account is to demonstrate financial responsibility over time. As long as you remain in good standing, some banks and credit unions may offer you the opportunity to upgrade to a regular bank account with fewer fees and more features. It’s essential to keep a positive account history to reap these benefits.
Pros and Cons of Second Chance Checking Accounts
Pros
Here are some of the biggest advantages of second chance checking accounts:
Can help you improve your banking history
More convenient than relying on cash or a prepaid debit card
Can help you save money on excessive bank fees
Establish a positive banking relationship over time
You may be able to upgrade your account to a traditional checking account if you keep it in good standing for a certain period.
Cons
Here are some of the disadvantages that come with second chance checking accounts:
May charge monthly fees
There will likely be a minimum account deposit
You may not have access to check writing privileges
Won’t help you improve your credit score
You maybe be required to take a financial management course
Making the Most of Your Second Chance Account
Once you’ve opened a second chance bank account, maintaining good financial habits is key to avoiding past mistakes. Regularly checking your account balance and transactions can help you dodge overdrafts and any associated fees.
Adding a savings account can also serve as a financial buffer and possibly act as overdraft protection. This can help you avoid hefty fees and improve your account standing.
Taking a financial management course can further arm you with the necessary skills for effective money management. Many banks and credit unions offer these classes free of charge, and some even require them for new account holders.
Lastly, use technology to your advantage by setting up account alerts. This will notify you of low balances or upcoming bills, making it easier to manage your finances.
Bottom Line
A bad ChexSystems report doesn’t have to upend your life. By doing a little homework, you can find a second chance bank account designed to suit your needs and help you rebuild your banking history.
The bank account you choose may come with certain restrictions in the beginning. But if you can keep your account in good standing, you may be eligible to upgrade to a more favorable checking account in the future.
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.
3. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of May, 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.
