If you’re one of the over 1 million households in California without a bank account, access to a growing economy can seem out of reach.
Banks and credit unions use a company called ChexSystems to monitor almost all checking account holders in the state. Most people get flagged for bouncing too many checks or not being in a position to pay excessive returned check fees (“NSF”). Your bank then either closes your checking account or denies you the opportunity to open a new account because of the information contained in the ChexSystems database.
And with the vast majority of banks and credit unions in California using ChexSystems, it’s very hard to march across the street to another bank in hopes of getting a new account.
Fortunately, there are banks and credit unions in California that do not use ChexSystems. There are also banks and credit unions that offer so-called Second Chance Bank Accounts. They are hard to find, but when you do it is a great relief to know there are financial institutions that want your business. And they won’t charge you an arm and leg for it.
CheckingExpert has helped thousands of people just like you open second chance banking accounts. We’ve selected the best accounts in California based on acceptance rates, checking account features and benefits, and the accounts with the lowest fees. Best of all, you can open an account today!
List of the Best Second Chance Banks and Credit Unions in California
The SoFi Money Cash Management Account is offered by SoFi Securities LLC, a FINRA registered broker dealer. It’s a checking account on steroids and we love that. Plus, they don’t use ChexSystems to approve accounts.You get a debit MasterCard and a very slick smartphone app. You can make deposits, write checks, utilize electronic bill pay, and transfer money. There are no monthly fees or overdraft fees. Plus, you earn interest on all the money in the account! The sign-up process can take less than 60 seconds.
There is no minimum balance requirement and the initial deposit is only $10. Plus, when you make that initial deposit SoFi Money will credit your account $25 as sign up bonus immediately deposited into your new account! Available in all 50 states.
- No account fees
- Unlimited reimbursed ATM fees
- Access to SoFi member benefits like career coaching and financial advising
- Automated bill pay
- Freeze debit card on-the-go
SoFi Money has been great! The account was easy to open and I got my debit card a few days later. The smartphone app is easy to use and I can check everything from my computer, too. The chip technology on the card gives me peace of mind. With no fees and all sorts of benefits, SoFi Money offers more than I imagined!
Gena M., SoFi Money Customer
Axos Bank, formerly called Bank of Internet USA, has been around for over 20 years and has created some of the best banking offerings we’ve reviewed. And our favorite is the Axos Bank Rewards Checking account. So what are the rewards? Check it out:- NO monthly minimum balance
- NO monthly maintenance fees
- NO overdraft or NSF fees
- UNLIMITED domestic ATM fee reimbursements
- Earn up to 1.25% APY
The Rewards Checking interest payment can be earned by jumping through a couple of hoops. If you have a direct deposit of $1,000 per month, you’ll earn one-third of the interest amount. If you use your Axos Visa Debit Card at least 10 times per month, you’ll earn another one-third of the interest amount. And, if you increase that number to 15 transactions per month, you’ll earn the final one-third of the interest amount. We like the fact that that the interest payment isn’t an all-or-nothing feature.
Axos has created a simple, but powerful smartphone app to manage your account. You can chat 24/7 with a financial assistant, get real-time account transactions and notifications, and freeze your account if your card is lost or stolen. Anything you need to do can be completed using their robust and user-friendly app.
Applying is easy. You’ll need your social security number, a valid form of ID such as a driver’s license, a valid U.S address, and you must be a U.S. citizen or resident alien. There is an initial deposit of $50 to set up the account.
Finally, as a member of FDIC, Axos offers the full protection offered by that institution.
Chime is a fast-growing internet-only financial company. Unlike big banks, Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts.And, best of all, Chime accepts all customers who apply. Even if you have bad or poor credit or have been blacklisted by ChexSystems or credit bureaus. This makes Chime a solid choice for a second chance bank account.
Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts, NO credit check, and NO CheckSystems.
Here are a few of the highlights:
- FREE Visa® debit card
- NO monthly Service Charge
- NO monthly minimums
- NO credit check; Bad credit OK
- NO ChexSystems or Telecheck; guaranteed approval
- FREE online banking and mobile banking/deposits
- FREE mobile and online bill pay
- NO foreign transaction fees
- NO fees at over 60,000 ATMs at convenient locations like Walgreens, 7-Eleven, CVS and more
- SAVINGS: You can round up every purchase to the nearest dollar and automatically deposit that difference into your savings account.
Chime Lets You Get A Jump On Payday
You can receive your paycheck up to two days earlier than at a traditional bank if you set up direct deposit — Chime processes your employer’s check immediately instead of waiting like other banks may.
Chime is one of the most friendly for those who have been negatively impacted by bad credit, ChexSystems, or Telecheck.
Your Chime Visa Debit Card charges NO fees at over 60,000 ATMs found at these retailers and many more:
Get a Chime Account Today!
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
FreshStart Checking, offered by American United Federal Credit Union, is the perfect option for anyone who has experienced issues with banking in the past, specifically with bounced checks. There is only a $20 service fee to open the account, but a minimum balance of $100 must be maintained to avoid further fees.A stand-out benefit of FreshStart Checking is the monthly service fee of only $7, which can be further reduced to $4 if your account balance is kept at $750 or higher. Added benefits of this checking option are:
- Free online banking and bill pay
- Unlimited check writing
- Overdraft protection
- A Visa card tied to your account
American United FCU’s California branches can be found in Cabazon, San Jacinto, and Coachella.
Rather than referring to your ChexSystems record, Armed Forces Bank will refer to a credit report and Certegy check services to determine if you’re eligible for an account. If you only have issues with ChexSystems, there’s a good chance you will be approved.We like their Access Checking account because it provides all of the banking necessities while remaining affordable. The account comes with digital banking access, free eStatements, a free Visa debit card, and overdraft protection services. To waive the moderate $10 monthly service charge, you just need to enroll in direct deposit.
To get started, all you will need is $25 for an initial deposit. As the name may suggest, Armed Forces Bank offers accounts to anyone who is actively enrolled or retired from the U.S. Army.
Fresh Start Checking is an innovative option offered by Bank of the West that serves as a second chance checking account. Bank of the West uses ChexSystems to screen new applications and Fresh Start is a solution for people with negative entries on their ChexSystems report.To be eligible for this checking account, your entry must be older than one year and it cannot be fraud-related. There is a $12 monthly fee tied to the account, but this can be waived via one of the following ways:
- Maintain an account balance above $1,000
- Have a $250 or more monthly deposit to your account
- Use your debit card at least 10 times during the month
Bank of the West has over 200 branches throughout California in most major cities; San Jose, Santa Clara, San Francisco, Oakland, and Los Angeles just to name a few.
If you’ve been turned down by other banks, we recommend the Pathway Checking from Bank OZK. Many accounts limit your access to features, but this second-chance checking option gives you all the benefits of a traditional checking account.There is a minimum opening balance of $50 and a $10 monthly service fee. However, there is no minimum balance requirement. Pathway Checking includes:
- Free debit card
- Free online and mobile banking
- Free telephone banking
- Free online bill pay
- eStatements
- Unlimited check writing
You can find a Bank OZK branch in San Francisco, Los Angeles, and Irvine. Visit a branch nearest you to start rebuilding a positive banking history!
California Community Credit Union offers its New Beginnings Checking account for members who may have been turned down in the past when attempting to acquire a checking account. The two biggest requirements to open a New Beginnings account are that a person must already have a primary savings account and must pay an initial deposit fee of $25. Some of the benefits include free online banking and eStatements and free access to co-op ATMs across the United States and Canada.After a year of no overdraft activity, New Beginnings account holders are welcome to apply for a regular checking account. CACCU has locations in Sacramento, Elk Grove, Modesto, and Roseville.
Are you looking for features that will help you to responsibly manage money and overcome past mistakes? If so, a Safe Check account from City National Bank could be the right option for you. This traditional checking account alternative will track what you spend as well as what you take in to help you gain a greater understanding of the flow of money in your account.For a low monthly maintenance fee, the Safe Check account features a debit card, ATM access, online banking, bill payment, and mobile access to help you get the most out of your banking experience.
California has over 50 locations across the state in most major cities including Beverly Hills, Glendale, Long Beach, and San Francisco.
The Fresh Start Checking account offered by Corporate American Family Credit Union is ideally for people who have had difficulties maintaining a positive checking history. This option gives people the chance to rebuild their accounts, regardless of if you do not qualify for a standard checking account, helping you to clean up your overall checking history. To qualify for this account:- You must be a member of Corporate American Family Credit Union
- Maintain a minimum balance of $100 in your Regular Share Account
- Pay a monthly fee of $10
Although CAFCU doesn’t have any physical locations in California, they are in-network with several CO-OP shared branches that can be found in Visalia, Three Rivers, and Tulare. If you have any in-person banking needs, these shared branch locations are available to you.
Excite Credit Union offers their Fresh Start Checking account to anyone who is in need of a second chance. Formerly known as Alliance Credit Union, Excite’s Fresh Start account is ideal for those who may have a less than perfect record with ChexSystems. To open an account, you will need to visit one of Excite’s locations. There are currently three branches in the San Jose area and one more in Sunnyvale.Getting started with the Fresh Start account is as simple as a $50 deposit and having a savings account with Excite Credit Union. This account features no minimum balance and a moderate $15 monthly service fee. You will receive online and mobile banking, along with access to in-network ATMs wherever they are available. Out-of-network ATMs can also be accessed for a small fee of just $2.
Rather than using ChexSystems, Federal Employees West Federal Credit Union uses Telecheck to screen new applicants. As long as you don’t have any negative marks on a previous loan or negative balances with another bank, you should be able to get an account.They offer one checking account option that has no minimum balance requirement, unlimited check writing, and overdraft protection services. We like this account because it can earn you interest if your balance is over $250.
FEWFCU extends membership to employees of over 10 major employers in California and immediate family members. The full list of employers can be found on their website. You can also visit their only location in Los Angeles.
Foothill Credit Union offers its Rebound Checking account to people looking for a second chance when it comes to banking. The monthly service fee is either $6 or $10 and is only the former when a balance of at least $50 is maintained. All Rebound accounts are closely monitored and subject to closure at the first sign of negative activity.However, successfully keeping your account in good standing for a year will make you eligible to be upgraded to Foothill Credit Union’s Simply Free account. You can apply at one of their locations in Arcadia, Covina, or Glendora.
GO2bank is an offering of pre-paid card giant GoBank and we think it’s a step in the right direction. Like some of the newer “challenger banks” GO2bank will deposit your direct deposit check up to 2 days early and has cashback rewards on several categories of purchases. This account also makes you eligible for the GO2bank credit card, which has no annual fee or required credit check.One significant drawback to many online-only bank accounts is that they have no way to accept cash deposits. But GO2bank accepts cash deposits at over 90,000 Green Dot locations nationwide. However, participating retailers may charge you a fee.
If you direct deposit over $500, your monthly maintenance fee of $5.00 is waived. And, they offer a pretty sweet overdraft protection program, but it has a gotcha charge of $15 if you don’t replace the funds within 24 hours.
Account-holders will appreciate the ability to budget their money with the help of a mobile app, budgeting tools, and a savings vault. In fact, they pay 1% on all money in the saving vault up to $5,000.
Go Further from GTE Financial helps put you on the path to a better checking account. If you don’t qualify for a traditional account, the Go Further account will help you get there in as little as 12 months. We consider this a low-cost second chance checking. As long as you make a total deposit of $500 for the month, opt to receive eStatements and make 15 monthly transactions, the $9.95 maintenance fee is waived.GTE Financial is one of the largest credit unions in the US. Membership is open to anyone through easy requirements and an online application process. The Go Further account includes:
- Free EMV-equipped debit card with built-in rewards
- Online and mobile banking tools
- Free bill pay service
- Easy money transfers through the Popmoney service
HomeStreet Bank is known to be more lenient with ChexSystems, so depending on the severity of your ChexSystems record you still may be able to open an account. Out of their several checking options, we recommend Free Checking.This account provides you with a simple and affordable way to manage your money. There is a required opening deposit of at least $100, but after that point you won’t need to worry about any monthly service fees or balance requirements. The account also includes online and mobile banking, a Visa debit card, and access to thousands of fee-free ATMs nationwide.
You can apply for a Free Checking account online or visit one of their branches and apply in-person. HomeStreet Bank has over a dozen locations in California in cities including Burbank, Fontana, Los Angeles, Pasadena, Riverside, and many others.
LendingClub Banking, formerly Radius Bank, has a second chance checking account called Essential Checking. It’s an FDIC-insured checking account designed to help you manage your money with powerful technology and limited fees. Available to residents in all 50 states.- Free MasterCard® debit card
- Free mobile banking with check deposit
- Free online banking with bill pay
- $10 minimum deposit to open account
- Monthly service charge of $9.00
- No minimum balance
- Ability to upgrade account after 12 months of responsible banking
Second Chance Checking is offered by the Los Angeles Federal Credit Union and can be earned after all your ChexSystems balances are paid off. This is a great option for anyone who has been denied a traditional checking account due to their ChexSystems history. An added benefit is that keeping this account in good standing for a year will make you eligible to upgrade to a Regular Checking account.The fees associated with this account are fairly cheap and if you sign up for a direct deposit with this account, you will only have a $10 monthly fee. Considering the alternative is $15 per month, it’s clear that this is a safe and cheap option. You will also be provided with a debit card and standard services associated with banks.
You can find a Los Angeles FCU branch location in Cerritos, Culver City, El Monta, Gardena, Glendale, Van Nuys, and Los Angeles.
No matter your banking past, Navy Federal Credit Union offers traditional checking for all members in Alabama and across the US. With no review requirements of your banking history, NFCU is an excellent choice for active duty or retired US military, family members and government contractors. There are two banking choices to choose from: Active Duty Checking and Free eChecking.Both account options come with a free NFCU debit card. There is no monthly service fee with direct deposit. Your account is protected from overdrafts with free savings transfers, a checking line of credit or an optional overdraft protection service. You also receive:
- Free mobile deposits
- Free bill pay
- Free traditional name-only checks
- Dividends credited monthly
North County Credit Union offers their Fresh Start Checking as a resource for anyone who has had difficulties managing money in the past. Signing up for this account grants you access to over 30,000 free ATMs, overdraft protection, online banking, and more. Some noteworthy aspects of this account are:- A $100 per month direct deposit requirement
- $25 opening deposit along with $15 per month as a service fee
- No monthly minimum balance requirement
North County CU offers membership to anyone that lives, works, attends school or worships in San Diego county. Once you join, you can remain a member for life regardless of where you live. They have one stand-alone location in San Diego and dozens of fee-free ATMs in the area.
OneUnited Bank offers its U2 E-Checking as an appealing second chance account to anyone who has had negative experiences with banking in the past. Whether you have a poor credit score or a negative entry on your ChexSystems file, this account can help you get back on your feet.A $50 minimum deposit is all that’s required to open this account and the first monthly fee is actually waived for your convenience. Keeping your account positive for a whole year will also make you eligible for an upgrade to a standard checking account. Some important benefits are:
- Free online and mobile banking
- Access to 30,000 surcharge-free ATMs
- Mobile Remote Deposit Capture for depositing checks
Although OneUnited Bank only has one branch in Los Angeles, they offer services to all California residents and are in-network with hundreds of locations where you can deposit or withdraw money from your account.
Peoples Cash Solutions understands that being denied a checking account for bad credit or problems with ChexSystems or TeleCheck isn’t a good feeling. If you haven’t been involved in fraudulent activity, all you need is a fresh start. You can find it with the Second Chance Checking account from Peoples Cash Solutions.Second Chance Checking offers easy direct deposit to save you time and money by eliminating the check cashing process. Your access to your money is simple through a Peoples Cash Solutions debit Mastercard. Other convenient features include:
- Online banking
- Online money transfers
- Online bill pay
- A personal checkbook
- ATM access
You can apply online with a $30 minimum deposit. There is a monthly maintenance fee of $4.95 for Second Chance Checking through Peoples Cash Solutions.
Premier America Credit Union seems to understand that financial setbacks can occur, and its Fresh Start Checking option is representative of that belief. Serving as a second chance opportunity for people who may have a negative entry on their ChexSystems history, this account comes with cheap fees and solid service.With a small minimum opening deposit of $25, you can open a Fresh Start Checking account today. There is a $13 monthly service fee, but this can be reduced down to $10 by hitting $200 in direct deposits each month. Some prominent benefits of this account include:
- Online and mobile banking
- Over 30,000 fee-free ATMs
- eStatements and mobile check deposits
To get started with Fresh Start Checking, you’ll need to visit one of their branches to submit an application. They have locations in Burbank, Chatsworth, Santa Clarita, Thousand Oaks, Ventura, and several other cities across California.
If you’ve been reported to ChexSystems, Premier Community Credit Union offers a Fresh Start Checking account to help you get back into banking. Their only requirement is that all items on the report must be paid.This account is very minimal and doesn’t include any extra features or perks. If you appreciate a no-frills, ultra-basic account, this may be a good option for you. There is a $10 monthly service fee and you’re able to apply for a Basic Checking account after 12 months of your account being in good standing.
Premier Community CU locations are in Manteca, Stockton, and Lodi. Visit their website or one of their branches to get started!
New Leaf Checking, offered through Priority One Credit Union, is a fantastic option for those who have experienced financial setbacks in the past and are looking for a fresh start. Regardless of your status with ChexSystems, you can open a New Leaf Checking Account with a $25 deposit and a credit score of at least 520.If approved for this account, you will have no minimum balance required and will be responsible for a $15 per month service fee. It’s worth noting that there is a $300 daily limit on withdrawals via purchases and ATMs, as well as a $500 monthly direct deposit requirement. Online and mobile banking can be accessed from anywhere and the Visa check card can be used at accepted locations.
To open an account, visit a location in South Pasadena, Los Angeles, or Van Nuys today.
Self-Help Federal Credit Union is known to be more lenient with ChexSystems, so even if you have a record you may still be able to get an account. We like their Access Checking for it’s low monthly fees and notable account features.The monthly service fee is only $5, but can be waived by keeping a balance of $2500 or more in your savings and checking accounts, enroll in direct deposit of $500 or more each month, or simply be under the age of 24 or over the age of 65. They also offer a Bill Pay service that allows you use the service free of charge 20 times a month.
Self-Help FCU has over a dozen branch locations in cities including Biggs, Fresno, Lamont, Modesto, Napa, and many others.
Strata Credit Union, formerly Kern Federal, features its Fresh Start Checking account as an option for those with a less-than-perfect financial track record. Whether you have a history of insufficient funds or a negative entry in ChexSystems, this option is here to help you get back on top.Before applying for this account, you’ll need to make sure any outstanding balances from other banks are paid off. After that, however, you’re free to apply and begin the process of recovering your financials. To open the account, a $25 deposit will be required along with a moderate $10 monthly service fee. We like that there is no minimum balance requirement and after a positive year of use you’re eligible to upgrade to a free checking account.
Strata CU has three branch locations in Bakersfield, California. In order to become a member, you must live, work, worship, or attend school in Kern County and deposit $5 into a savings account.
Right Start Checking, provided by UNIFY Financial Credit Union, is a go-to option for people who have been denied a traditional checking account due to a negative history with ChexSystems. Opening a Right Start Checking account, with an initial deposit of $25, will allow you to write as many checks as you need and provide overdraft protection up to $250.This account has no monthly fees associated and allows for eBanking from any device, meaning you’ll have access to your funds anywhere in the world that you have service. Building a positive checking history has never been easier with this second chance bank account.
UNIFY FCU has several branches in the greater Los Angeles area including Lakewood, Montebello, Torrance, Redondo Beach, Hawthorne, and several others. Visit their website to find a branch near you!
Union Bank is another option that uses ChexSystems but is more lenient on their requirements. For example, if your record is over a year old, paid, and doesn’t indicate fraud, you could be eligible for an account. They will also offer you an account if your record is over three years old and doesn’t indicate fraud.If this sounds like a possibility for you, we recommend the Bank Freely Checking account. They don’t charge any monthly service fees and all you need to open the account is a deposit greater than $0. Union Bank understands that mistakes happen, so if you overdraw your account by an amount less than $5, they will not charge any overdraft fees.
There’s a good chance you’ll find a branch location anywhere you go in California. Bakersfield, Walnut Creek, Oakland, Vallejo, Los Angeles, and San Diego are just a few cities with Union Bank locations.
For those who don’t qualify for a standard checking account due to a ChexSystems history, Renew Checking is a popular option offered by Upward Credit Union. After a one-time payment of $25, as a processing fee, and a $100 deposit to your regular share account, you can officially open up your Renew Checking account.This option provides the same benefits as Upward Credit Union’s Elite Checking program, with the exception of overdraft protection. With that said, after a nine-month waiting period you are free to apply for their standard checking account. Features of Renew Checking include:
- No monthly service charge
- Visa debit cards and access to ATMs all across the country
- No minimum balance requirement
Membership is extended to those who live, work, attend school, or belong to an eligible employer in San Mateo county. You can find Upward CU branches in Burlingame, San Mateo, and Redwood City.
Safe Debit is an option offered by US Bank that, for all intents and purposes, is a normal account with the exception that you can’t write checks. However, you will receive a debit card along with online and mobile banking options. A $4.95 monthly service fee gives you access to your account, free access to view your credit score on VantageScore 3.0, and discounts on money orders.To open an account, you will need to visit one of US Bank’s branches located in and around most major cities in California. It is important to note that some of these are not traditional US Bank buildings, but rather are located within other stores, such as Walmart or Vons.
Varo Bank is another internet-only bank with services based on their mobile apps for Apple and Android devices. Varo doesn’t charge fees at 55,000+ Allpoint ATMs and offers strong budgeting tools and automatic savings programs.When you open an account at Varo you can do so with no initial deposit. Plus, there are never any monthly maintenance fees, foreign transaction fees, transfer fees, or debit card replacement fees.
Finally, if Varo receives a payroll notification before your payday, it can deposit your money more quickly than many banks.
Washington Savings Bank gives you the opportunity to start fresh with their Online Rewards Checking. We understand that you need an account with easy accessibility and plenty of options. Washington Savings Bank provides all the perks you need to rebuild your banking relationship.With relaxed CheckSystems requirements, you’ll find it is easy to open an Online Rewards account. All you need is a minimum deposit of $10 and an online application. There is no minimum balance requirement, but there is a $14.95 monthly fee. After a year of good standing, you can convert your account to a free checking plan.
With Online Reward Checking, you have access to:
- A free Mastercard EMV debit card
- Free online banking and bill pay
- Free budgeting tools
- Free mobile banking
- Mobile deposit after 3 months of direct deposits
- Free eStatements
Wells Fargo recently changed the Opportunity Checking account to Clear Access Banking. And we like one change, in particular. Wells Fargo has done away with overdraft and non-sufficient funds (NSF) fees. Clear Access Banking is a debit card-only account (no paper checks available) and if you attempt to purchase something without sufficient funds, the transaction will be denied. That’s a lot better than having the transaction approved and then discovering you’ve been hit with a $35 overdraft fee.There is a $5 monthly fee, but that is be waived for account holders 24 years old and younger. This account is available to residents in all 50 states.
- The largest number of branches in the U.S.
- Minimum deposit of $25 to open an account
- Online bill pay and smartphone app
- Mobile check deposit
- Includes a Visa debit card
- Send and receive money through Zelle
- Additional features include account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card
Did we leave your financial institution off this list of The Best Second Chance Banks and Credit Unions in California? Has there been a change in any of the listings? Please let us know.