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 Banking Options
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 220 regional banks and credit unions listed below.
1. Chime (Our Top Choice)
- No credit check or ChexSystems
- No minimum opening deposit or monthly service fee
- Over 60,000+ fee-free ATMs1
- 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 service fee
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4. Axos Bank
- No minimum deposit
- No monthly maintenance fees
- No overdraft or non-sufficient funds fees
- Unlimited ATM reimbursements
- Early direct deposit up to 2 days ahead of payday
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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
Chime® is an online-only banking option with no minimum opening deposit, monthly fees, minimum balance requirements, or foreign transaction fees. You also get access to over 60,000 fee-free1 ATMs with your Visa debit card. They are located conveniently at places like Walgreens, 7-Eleven, CVS, and more
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.
You can also get your paycheck up to two days early with direct deposit2.
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 bank account include fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum opening deposit or hidden fees.
You can get paid up to two days early with direct deposit. And you earn up to 15x points and cashback when you use your Visa debit card at participating merchants.
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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6. 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.
7. 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.
8. Capital One 360
Capital One 360 offers a convenient online checking account with mobile banking and a free debit card. You don’t need any money to open the account, and there are no monthly fees.
If you need to send cash to friends or family, you can use the Zelle app. And you’ll gain access to over 70,000 ATMs located across the country.
9. Memory Bank
You can open a new checking account at Memory Bank with just $50 to get started. 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.
10. 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 individuals that maintain lower bank account balances.
Account holders will receive access to the Wells Fargo mobile app and online banking, so you can monitor your balance. Wells Fargo will refund any unauthorized transactions if you contact the bank immediately.
You’ll need $25 to open the Clear Access Banking account, and there is a monthly service charge of $10. However, you can avoid the monthly service charge in one of the following ways:
- Maintaining a $500 minimum daily balance
- Have $500 or more in direct deposits
- You’re between the ages of 17 and 24
- You have a linked Wells Fargo Campus ATM or Campus Debit Card
11. Bank of America
Bank of America offers a second chance bank account called SafeBalance. It’s a checkless banking 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 service fee of $4.95, and you can open the account with as little as $25. It’s a great option for college students and anyone who maintains a lower account balance.
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American Airlines Credit Union
American Airlines Credit Union offers various checking and savings accounts, including their Ascend Checking. These bank accounts are a good 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 $100 for meeting certain requirements.
Appalachian Community Federal Credit Union
Appalachian Community FCU is available in Tennessee, Virginia, and Kentucky. You can open a second chance checking account with just $20, and there’s a monthly maintenance fee of $10.
Bank OZK
When you open a second chance checking account with Bank of the Ozarks, you’ll receive a debit card and access to mobile and online banking. You can open a Pathway Checking account with $50, and there’s no monthly minimum balance.
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 service fee or $5 monthly service fee with a qualifying direct deposit 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 service fee is $9.95 with direct deposit.
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 an $8.99 service fee. 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.
CommonWealth One Federal Credit Union
CommonWealth One FCU is only available to customers in DC, Maryland, and Virginia. You must open the account at a branch office. There are no monthly fees and no minimum balance requirements.
Farmers and Merchants State Bank
Farmers and Merchants State Bank has branches throughout Indiana and Ohio. Their Pure Checking account has a $6.95 monthly fee, but you can get it waived by meeting certain criteria. There’s no minimum monthly balance for this second chance checking account. Additionally, you’ll receive free mobile and online banking.
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 receive discounted fees of up to 50% on certain services. However, you can’t write checks or deposit a check at ATMs.
First Financial Bank (Formerly MainSource Bank)
First Financial Bank acquired MainSource Bank, a bank with locations in Illinois, Indiana, Kentucky, and Ohio. You can open a second chance checking account with a $50 minimum opening deposit to get started. There are no minimum balance requirements.
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 service 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 open a second chance checking account, and there’s a monthly service fee of $9.95. However, the service fee will be waived if you can maintain a $200 minimum balance.
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. From there, you can open a checking account with at least $50.
OneUnited Bank
You can open an 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 that want to maintain a low monthly balance.
You can open 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.
Webster Bank
Webster Bank offers a second chance checking account called Opportunity Checking. It’s available to customers in Connecticut, New York, and Rhode Island. You’ll open the account with $50, and there’s a monthly service fee of $16.95. However, if you set up direct deposit, they will reduce the service fee to $11.95.
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.
What is a second chance checking account?
Most banks will run a ChexSystems report when you apply to open a new checking or savings account. Financial institutions use this report to check if you’ve overdrawn your account or closed accounts without reconciling a negative balance.
Banks and credit unions can deny your application to open an account if they determine you are a financial risk. Unfortunately, not having access to a checking account can cause financial problems for many people.
See also: 20 Banks That Don’t Use ChexSystems & 5 Credit Unions That Don’t Use ChexSystems
Paying in cash or relying on prepaid cards to manage daily transactions just isn’t feasible for most people. Furthermore, do things like paying your mortgage or making major purchases can be inconvenient without a bank account.
Second chance banks offer you an opportunity to 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 to manage a bank account in the past. Unfortunately, a poor ChexSystems report 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 hard to pay your bills and relying on cash or prepaid debit cards is unrealistic for most people. That’s why a second chance bank account can be so beneficial.
A second chance bank account allows you to rebuild your ChexSystems report. The account may have certain restrictions. However, 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 application to open a checking account is denied?
If you’ve recently been turned down for an application to open a checking account, it could be due to a poor ChexSystems report. 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 not have access to check writing privileges or have to pay a monthly fee.
If you were denied a bank account due to a ChexSystems report, your best course of action is to find a financial institution that is willing to work with you. Look for one that either doesn’t use ChexSystems or offers a second chance bank account.
How to Avoid Problems in the Future
Once you open a second chance bank account, you must focus on building good banking habits. This will prevent you from running into the same types of problems down the road.
Make sure you regularly check your account balance and closely monitor your transactions. This will help you avoid overdrawing your account.
You can also set up a savings account as a form of overdraft protection. It will keep your account in good standing and save you from paying hefty monthly fees.
Signing up for a free class on financial management could help you learn the skills you need to manage your bank accounts effectively. In fact, the bank you open an account with may require you to sign up for this type of class.
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 ChexSystems report
- More convenient than relying on cash or prepaid cards
- Can help you avoid excessive bank fees
- Build 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 come with costly monthly service 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
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 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 October, 25th, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
Source: crediful.com