Would you like to open a checking account, but you’re worried that your bad credit and past banking history might get in the way? With these issues, it can be difficult to open a new bank account.
OUR TOP PICK
Best Checking Account for Bad Credit of 2023
The good news is that bad credit checking accounts can help you get back to banking, no matter how damaged your banking history has become. We’ve provided a comprehensive look at twenty of the best checking accounts for bad credit.
Best Checking Accounts for Bad Credit of 2023
There are plenty of banks and credit unions that don’t use ChexSystems to choose from, all of which offer different features and benefits regardless of your banking history.
1. Chime
- No credit check or ChexSystems
- No minimum opening deposit or monthly service fee
- Over 60,000 fee-free1 ATMs
- Get paid up to 2 days early with direct deposit2
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2. Current
- No credit check or ChexSystems
- No minimum opening deposit or maintenance fees
- Get paid up to 2 days faster
- Overdraft up to $200 without any overdraft fees
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3. Chase
- No credit check or ChexSystems
- $100 bonus after 10 purchases in 60 days
- Over 16,000 fee-free ATMs
- $4.95 monthly fee
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4. Axos Bank
- No credit check
- No monthly service fees
- 100% reimbursement of ATM fees
- No overdraft fees
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5. Aspiration
- Unlimited fee-free withdrawals at over 55,000 ATMs
- Minimum opening deposit is $10
- Deposits are FDIC insured up to $2 million
- Get paid up to two days early
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1. Chime
With Chime®, a bad credit score is no longer a deal-breaker. They offer an award-winning financial app and debit card with no credit check.
You can open a Chime Checking Account online with no monthly fees. And by that, we mean no overdraft fees, no monthly maintenance fees, no foreign transaction fees, and no minimum balance fees—ever.
Chime also offers a new way to build your credit with the Chime Credit Builder Secured Visa® Credit Card7. It’s a secured credit card with no annual fees, no credit checks, and no interest1 charges.
They offer over 60,000 fee-free1 MoneyPass® and Visa® Plus Alliance ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit. You can also deposit cash for free at over 8,500 Walgreens.
Chime is definitely the best option on this list.
2. Current
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.
Some features of the Current mobile banking account include fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance or hidden fees.
You can also get paid up to two days early with direct deposit and earn up to 15x points, and get cashback.
3. 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 fee-free ATMs, 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 service fee of $4.95; however, there is no minimum opening deposit to get started.
4. Axos Bank
The Axos Bank Rewards Checking account comes with no monthly maintenance fees, unlimited reimbursements of ATM fees in the US, and competitive cash back rewards.
There are no overdraft fees with this checking account. You also get unlimited free mobile deposits and your funds are FDIC insured up to $250,000.
There is a minimum deposit of $50 to open the account, but after that, there are no minimum balance requirements.
If you are looking for a checking account with no fees, Axos Bank is a strong choice.
5. Aspiration
With the Aspiration Spend & Save account, you can have both a regular checking account and a savings account which could earn up to 5% APY. Aspiration also offers unlimited fee-free withdrawals at over 55,000 ATMs. The minimum opening deposit is $10. Deposits are FDIC insured and you can get paid up to two days early.
The Aspiration debit card is made from recycled plastic. Deposits are 100% fossil fuel-free. And they even give you the option to plant a tree with every card swipe.
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Albert
With Albert, there is no minimum deposit requirement to open an account. All funds are insured up to $250,000 through federally backed FDIC protection.
You get a free Mastercard debit card that you can earn cashback rewards with. Got a question related to personal finances? Use Albert’s ‘Ask a Genius’ feature on their app, which is available 24/7.
TD Ameritrade
TD Ameritrade offers a brokerage account with a comprehensive cash management checking account. As a client, you get unlimited check writing. Once you open the brokerage account, you can complete the checking account application online.
A Cash Management account also gives you access to free online bill pay, as well as a free debit card with nationwide rebates on all ATM fees. In addition, there are no monthly fees if you maintain a $100 minimum daily balance. However, it’s important to note that a TD Ameritrade checking account is not FDIC-insured or bank guaranteed.
Navy Federal Credit Union
To qualify for Navy Federal Credit Union membership, you must be an active-duty or retired member of the military, which includes the Armed Forces, National Guard, Coast Guard, and the Department of Defense.
If this sounds like you, then NFCU could be a great choice because they don’t use ChexSystems or EWS. Plus, there is a free checking account option with no minimum balance requirements and no monthly fee with a qualifying direct deposit.
SoFi
The SoFi Checking and Savings account has no overdraft fees, no minimum balance fees, and no monthly fees. Plus, it offers 55,000+ fee-free ATMs within the Allpoint® Network. Similar to Chime and Current, you can get your paycheck up to 2 days early when you set up direct deposit.
You’ll also get a 1% APY on your checking and savings accounts and up to 15% cash back at local establishments with your SoFi debit card.
Langley Federal Credit Union
Langley FCU is another credit union that doesn’t use ChexSystems. They are located in Virginia, but membership is open to customers in all 50 states.
You must first open a share savings account with a minimum deposit of $5 before you can open a checking account. There are no minimum balance or monthly service charges. In addition, they offer free online and mobile banking, free online bill pay, and access to 55,000+ Allpoint ATMs Nationwide.
Account-holders can also get paid up to 3 days early with direct deposit.
FSNB
FSNB (formerly Fort Sill National Bank) doesn’t use ChexSystems, and you don’t have to be in the military to apply.
The Basic Checking account has a $5 minimum deposit, and you need a daily minimum of $75; otherwise, you’ll be charged a fee of $5.50. In addition, account-holders get a Visa CheckCard and free online banking services.
Renasant Bank
For people residing in Alabama, Florida, Georgia, Mississippi, and Tennessee, Renasant there is no credit check and they don’t look at your ChexSystems, EWS, or Telecheck record.
However, you won’t be eligible if you owe any money to the bank. Account-holders also get a Mastercard debit card. All of their checking accounts require a $50 minimum deposit, and you’ll be charged $7.50 each month unless you maintain a balance of $500 or more.
United Bank
United Bank doesn’t use ChexSystems, but there are only locations in Maryland, Ohio, Pennsylvania, Virginia, West Virginia, and Washington, DC. You can open an account with a $50 minimum deposit. There is no minimum balance requirement or monthly fees.
You can also upgrade to rewards checking, where you earn cashback rewards and discounts on movies, theme parks, and prescriptions. It’s only $10 a month, or you can have the fee waived if you reach 15 purchase transactions monthly or have a minimum of $500 in regular deposits.
1st Convenience Bank
1st Convenience Bank is a branch of 1st National Bank Texas, and it’s only available in Texas, New Mexico, Arkansas, and Arizona. The bank doesn’t use ChexSystems to determine who can open an account.
You’ll need a minimum deposit of $20 to open a new checking account. And the bank does charge a monthly maintenance fee. However, you can avoid all monthly fees if certain conditions are met.
Huntington National Bank
Huntington has locations in Arizona, Colorado, Illinois, Indiana, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin.
Huntington bank does use ChexSystems, but you can still qualify for a checking account as long as you don’t owe the bank any money. However, applicants with an EWS record may not qualify.
For Huntington’s basic account, there is no minimum opening deposit and no minimum balance requirement.
U.S. Bank
U.S. Bank has a checking account called Bank Smartly. It’s a decent option for anyone trying to deal with the fallout of a negative ChexSystems report. Account holders will receive a free U.S. Bank Visa debit card and use of the mobile app.
If you have combined monthly direct deposits totaling $1,000 or more, U.S. Bank will waive the $6.95 monthly maintenance fee. U.S. Bank is accessible to banking customers across the U.S.
Cadence Bank
Cadence Bank offers several checking accounts that don’t use ChexSystems, including My Way Checking. This account comes with the basic features you’d expect, like a free debit card, online banking, and bill pay.
You can open an account with a minimum deposit of $50. And you can get the monthly fee waived by meeting certain requirements.
Varo
Varo is an online-only bank that doesn’t use ChexSystems. So, you can open a new checking account without worrying about the bank running your ChexSystems report. Varo requires no minimum deposit and has no monthly fees. Account-holders also get early access to direct deposit payments. Direct deposits usually post on the same day they’re received.
Varo Bank knows that just because you need second chance banking doesn’t mean you want sub-standard service. Your account comes with a free Visa debit card, access to over 55,000 Allpoint ATMs, and free paper check mailing.
GoBank
GoBank is a solid bank that offers bank accounts for bad credit. With this checking account, you can avoid its monthly fee of $8.95 with a $500 direct deposit.
Plus, GoBank offers free access to 42,000 ATMs; up to four free withdrawals per month. You can also get your paycheck up to two days before payday and government benefits up to four days before benefits day.
Regions Bank
You’ll need a minimum deposit of $50 to open a Simple Checking Account at Regions Bank. This account doesn’t come with too many bells and whistles. However, it’s a good option for anyone who wants a basic checking account from a bank that doesn’t use ChexSystems.
Regions Bank will lower your monthly maintenance fee from $8 to $5 per month if you sign up for online statements. And you’ll have the option to open a savings account through Regions Bank as well.
What is a Checking Account for Bad Credit?
Some banks market services that are specific to consumers with thin or damaged credit history. One of these types of services are bad credit checking accounts. These checking accounts are usually easy to open, with minimum fees and most importantly, no credit checks or ChexSystems reports.
A bad credit score can severely impact your financial life. However, taking the time to find a bad credit checking account that fits your needs is a great way to start improving your credit report. Whether you’re considering a bank that doesn’t run ChexSystems reports, or a second chance bank account, you’ll find a wealth of information below.
What is ChexSystems?
ChexSystems is a financial reporting agency that collects user data from banks and credit unions. One of the things this data is used for is to create consumer reports that financial institutions can use to screen customers.
When attempting to open a new bank account, most financial institutions will pull your ChexSystems report. Your ChexSystems report will show your past banking history including overdrafts, bad checks, check fraud, negative balances, or excessive withdrawals.
If you’ve had any of these issues in the past five years, it will most likely be on your ChexSystems record. Fortunately, there are several reputable banks that don’t use ChexSystems or run a credit check to qualify customers. There are also numerous banks that offer second chance checking accounts for people with bad credit.
Can you really open a checking account with no credit check?
Opening a no credit check bank account is easier than ever, with plenty of reliable banking services to choose from. There are two types of checking accounts for people with bad credit: banks that don’t use ChexSystems and second chance checking accounts.
Banks that Don’t Use ChexSystems
These banks simply don’t pull your ChexSystems credit report. The no-credit-check bank accounts they offer for people with bad credit have the same features as bank accounts offered to everyone else.
Second Chance Checking Accounts
Second chance banks may do a credit check or use ChexSystems, but they’re willing to give you a second chance regardless of your banking history. Second chance bank accounts usually come with a monthly maintenance fee.
The best second chance checking accounts still have some of the same features as ChexSystems banks and credit unions, such as overdraft protection, online banking, and bill pay.
With both accounts, you should also be able to upgrade to a standard checking account once you have a positive banking history.
What to Look for in a Checking Account for Bad Credit
When searching for the best checking accounts for bad credit, you’ll find many options to choose from. For that reason, it can be helpful to know what features are generally available, and which ones are most important to you.
Here’s a list of some of the most significant details you might want to keep in mind when looking at bank accounts for bad credit.
- No ChexSystems or Second Chance accounts
- Minimum opening deposit requirements
- Minimum balance requirement
- Monthly maintenance fees & miscellaneous account fees
- Card options such as debit card, secured cards, prepaid debit cards, etc.
- Spending limits on debit card purchases
- Cashback rewards
- Fees for cash withdrawals
- Mobile banking options
Bottom Line
Having poor credit doesn’t mean you can’t get a bank account. But, it does mean that your selection will be somewhat limited. We also show you how to clear your name and remove yourself from ChexSystems so that you can get a bank account anywhere.
It may take some time to get your name removed. Meanwhile, some of the banks we’ve listed above are just as good, if not better, than any account on the market right now. So, it’s a good idea to start with one of those.
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.
7. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Source: crediful.com