On This Page
On This Page
A second chance checking account can help you build a better banking history and pave the way for more checking and savings opportunities in the future.
Learn more about these banking products in this guide, which covers:
Chime’s online checking account doesn’t have monthly maintenance fees or minimum balance or deposit requirements and may be a good option for those looking for a student checking account. You also won’t pay overdraft fees, foreign transaction fees or transfer fees.
You can get access to direct deposit funds quickly with this online checking account, which may make it easier to manage your budget. If you need cash, you can grab it at one of more than 60,000 ATMs without paying bank fees.
You also won’t pay overdraft fees, as Chime will simply decline debit card purchases if you can’t cover them. However, if you qualify for SpotMe, Chime will cover up to $200 in overdrafts to minimize inconvenience at the register.
Chime® Checking Account: An overview
| Monthly Fee | Opening Deposit | Min Account Balance | Overdraft Fee | Uses ChexSystems |
|---|---|---|---|---|
| None | No minimum | None | No | No |
Chime® Checking Account: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Excellent overdraft protection ✅ No monthly fees ✅ No credit or ChexSystems checks ✅ No minimum deposit or balance requirement |
❌ No physical branch locations ❌ Account doesn’t earn interest ❌ You may pay fees for certain types of withdrawals or deposits |
Current offers products that work like checking accounts in that you can receive direct deposits and use a debit card to make payments. You can also build your credit by using the Build card and get points for cash back.
You won’t pay monthly fees with a Current account, and there’s no credit check. If you have $500 or more in monthly direct deposits, you qualify for fee-free overdraft protection. The account does have the potential for other costs, though, such as cash deposit and ATM fees.
Current isn’t a traditional checking account. It offers some hybrid benefits of checking and savings accounts, but you won’t have checks or check-writing abilities.
Current Account: An overview
| Monthly Fee | Opening Deposit | Min Account Balance | Overdraft Fee | Uses ChexSystems |
|---|---|---|---|---|
| None | No minimum | None | No | No |
Current Account: Pros and cons
| Pros | Cons |
|---|---|
| ✅ No monthly fees ✅ No credit or ChexSystems check required to open account ✅ Early access to direct deposits ✅ Potential to earn rewards ✅ Potential for credit building |
❌ No physical branch locations ❌ High APY on savings requires meeting direct deposit threshold ❌ You pay a fee for making cash deposits ❌ No check-writing capabilities |
This Chase’s Secure Banking checking account provides comprehensive money management features. With this Chase checking account, you can get early access to direct deposits, transfer money via Zelle, make withdrawals via Chase ATMs and pay bills with Chase Online Bill Pay. You do pay a monthly fee of $4.95.
You won’t pay overdraft fees because debit card transactions will be declined if you don’t have the funds available. There’s no minimum deposit requirement, and Chase’s Zero Liability Protection ensures you’re not responsible for unauthorized charges if you report them in a timely manner.
Chase Secure Banking: An overview
| Monthly Fee | Opening Deposit | Min Account Balance | Overdraft Fee | Uses ChexSystems |
|---|---|---|---|---|
| $4.95 | No minimum | None | No | No |
Chase Secure Banking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ No credit or ChexSystems check ✅ No minimum deposit requirement ✅ Zero Liability Protection for unauthorized debit card charges ✅ Plenty of account management tools via Chase’s mobile app or online portal |
❌ There is a monthly fee ❌ You don’t have paper checks ❌ Out-of-network ATM fees can add up and aren’t reimbursed |
This rewards checking account offers the opportunity to earn 1% cash back on regular spending without paying a monthly maintenance fee. You also don’t pay overdraft fees and get unlimited ATM rebates, further reducing your costs.
While the APY on this account is low compared to high-yield alternatives, it’s pretty competitive for a second chance checking option. You get 0.10% APY if your balance is $2,500 or higher and 0.15% APY with a balance of $100,000 or more. You can manage your account with LendingClub Mobile.
LendingClub Rewards Checking: An overview
| Monthly Fee | Opening Deposit | Min Account Balance | Overdraft Fee | Uses ChexSystems |
|---|---|---|---|---|
| None | No minimum | None | No | No |
LendingClub Rewards Checking: Pros and cons
| Pros | Cons |
|---|---|
| ✅ Opportunity to earn cash back ✅ Robust mobile checking account ✅ No monthly maintenance or overdraft fees ✅ Early access to direct deposits |
❌ No physical branch locations ❌ You can find options with much higher APY ❌ No protection against some types of overdrafts |
Second chance checking accounts are designed for individuals with bad credit.
Many banks check your credit, limiting your access to products if you have poor credit or a negative history of account management. Second chance products don’t put as much emphasis on credit history and offer a chance to build positive history in the future.
ChexSystems is a consumer credit reporting agency that specializes in data related to checking and savings accounts.
It gathers information reported by banks, such as reasons for account closure, whether consumers owe money on closed accounts and issues such as overdrafts and bounced checks. This information is used to generate a score that informs banks about your performance as an account holder.
Banks sometimes include a ChexSystems check in their evaluation of potential account holders, as the reports can indicate whether someone might be a risk. Information can stay on your ChexSystems report for up to five years, potentially inhibiting your ability to get a checking or savings account. Second chance checking accounts usually don’t require a ChexSystems report for approval.
Second chance bank accounts may be a good option if you’ve been denied a traditional checking account.
Reasons to apply for a second chance checking account might include:
Do the same research you would do when opening any bank account to ensure you choose the best checking account to meet your needs.
Some important considerations include:
Follow these steps to open a second chance checking account:
The nearest local bank may not offer these account types, so you’ll need to do some research. Read information about account terms on banking sites and consider consumer reviews about a bank’s customer service.
Once you choose an option, you can typically apply online in just a few minutes. You’ll need to provide your full name, residential address, contact information and Social Security or Tax ID number. You also usually need to upload an image of your government-issued ID, such as a driver’s license.
Once your account is approved, you need to fund it. If you have another checking or savings account, you can do this via an electronic funds transfer. However, in second chance checking situations, many people don’t have another account. Banks often provide initial deposit options that include PayPal or Venmo transfers, mailing a check from someone else to a lockbox, making a mobile deposit with a check or depositing cash via an ATM or service partner.
If you want to open an in-person or online checking account with no ChexSystems check and no opening deposit, you may need to take a few steps that aren’t required when opening a traditional checking account.
Second chance accounts, which are sometimes called bad credit checking accounts, aren’t offered by every bank. However, some nationwide institutions do offer these types of accounts.
These banks include:
Note that not all of these institutions are traditional banks, and even traditional banks offer some second chance products that don’t work exactly like regular checking accounts. Always read the details of an account before you apply so you understand the various features you’ll get.
Improving your ChexSystems score and banking history can open new financial doors in the future.
Here are some tips for using second chance checking to do this:
If you don’t find a second chance credit union or bank you like, you have other options.
You can use prepaid debit cards to make purchases just as you would with a traditional checking account debit card. You can also use check-cashing services at local banks and retail stores to convert your paycheck to cash and buy money orders to pay bills.
These alternatives are less convenient than having a checking account, though, so working on rebuilding your ChexSystems history can be a good idea.
Second chance checking can help you rebuild your bank history. It can be worth it to put some work into this task if it helps you access better checking and savings options in the future.
You can get an online banking second chance account with several institutions across the country. You may also find some options at local bank and credit union branches.
Yes, some banks offer accounts that don’t have to be funded immediately.
Yes. Banks that don’t do credit or ChexSystems checks as a prerequisite for opening an account would likely not even know about your negative balance or history with another bank.
If a bank reviews your ChexSystems or credit reports, they might deny you a second chance account because your negative history exceeds a certain threshold. You may also be denied an account even when credit or ChexSystems reports aren’t considered if you don’t have the necessary form of ID or didn’t provide the required information such as a valid residential address.
Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.
Over the past 12 years, Sarah has contributed to numerous publications in the personal and small business finance sector, including content on budgeting, bankruptcy, small business accounting, and financial tech. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful, relevant resources for readers.
