If you recently applied for a checking account and were denied because of a negative banking history, you’re not alone. Approximately 85% of banks in Hawaii use a company called ChexSystems when you apply for a new checking account. If you have experienced several overdraft checks from another bank or have been unable to pay overdraft fees, ChexSystems will flag that behavior making it next to impossible to find a bank willing to work with you.
Granted, ChexSystems is the safety net for bank institutions to weed out people who have committed fraud or identity theft, but if you get caught in the net it can be crippling. And most of us absolutely require the use of a bank checking account to manage our money, pay bills, and receive direct deposits from an employer or government agency.
Fortunately, some banks and credit unions offer so-called No ChexSystems Checking Accounts and/or Second Chance Checking Accounts to help people rebuild their credit and financial histories. Our job at checkingexpert.com is to find those institutions in Hawaii that can assist you.
The Best Second Chance Banks and Credit Unions in Hawaii
Chime Bank is one of the fastest growing online banks. Chime offers both online checking and savings accounts without performing a ChexSystems background check or pulling your credit score. We like how Chime processes direct deposits faster than other banking systems, giving you access to your money two days faster. Their simple, online services are what makes Chime a good option for easy checking.One of the best features of a Chime account is that you always know exactly how much money you have in your account through the easy-to-use mobile app and real-time alerts. Chime Bank also offers Automatic Savings. Every purchase is automatically rounded up to the nearest dollar and the difference is deposited into your savings account.
Setting up an account with Chime is incredibly easy, and there is no minimum deposit amount. Your account comes with:
- FREE Visa® debit card
- Free online banking, bill pay and online checks
- Free money transfers and foreign transactions
- Fee-free overdraft up to $100
- No monthly fees or service charges
- No monthly minimums
- Access to a network of 38,000 MoneyPass® and Visa Plus Alliance ATMs worldwide
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 you don’t have to make an initial deposit to get an account. Plus, you can earn a $50 cash bonus if you sign up for SoFi Money® and make one direct deposit of at least $500. 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
I love SoFi Money! Easy to open, easy to make transactions and move money around, and an awesome smartphone app that alerts me to all the key indicators on my account. And I like making a little interest on the money in my checking account. During the past several months, I have come to appreciate the contactless payment capability of the Mastercard debit card.
Kevin M., SoFi Money Customer
Instead of using ChexSystems, CU Hawaii Federal Credit Union utilizes Telecheck when you apply for a checking account. If you’re looking for a simple low-maintenance account, we recommend their general checking account.With this option, you won’t need to worry about monthly service fees or minimum balance requirements. You also get a free debit card, online banking, and free mobile check deposit. We like this account because it offers overdraft protection options to help you avoid any troublesome fees.
If you’re a resident of Hawaii, you can become a member of CU Hawaii FCU. You can find branches in Hilo, Kea’au, Kailua-Kona, Na’alehu, Ocean View, Pahala, and Pahoa. They also have a limited access student branch at Waiakea High School.
When you apply for an account at Gather Federal Credit Union, they refer to Telecheck rather than ChexSystems to determine if you’re eligible for a checking account. We like this credit union because every checking account they offer has no monthly fees and no minimum balance requirements.If you want a simple and convenient checking account, we recommend Share Draft Checking. It requires $25 to open and includes unlimited check writing, a Visa check card, and online check orders. You can also earn dividends regardless of your account balance! If you want an account with more perks, they offer a wide array of Kasasa products as well.
Gather FCU extends membership to anyone who lives, works, worships, or attends school on the islands of Kauai and Niihau. You can visit one of their branches located in Lihue, Koloa, Kapaa, Eleele or Waimea for all of your in-person banking needs.
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
Hawaii Community Federal Credit Union is another option that utilizes Telecheck in lieu of ChexSystems. So if you’ve had issues with ChexSystems banks in the past, this may be a viable alternative for you. We recommend the Check Advantage account if you want to avoid pesky fees.With Check Advantage, you won’t have to worry about minimum balance requirements or monthly service fees. You can also get access to overdraft protection, a Visa debit card, and more than 25,000 fee-free ATMs nationwide. All that is needed to open the account is a $50 deposit into a savings account when you apply for membership.
Hawaii Community FCU offers membership to anyone who lives, works, worships, volunteers, or attends school on Hawaii Island. Visit their website or one of their branches located in Hilo, Honoka’a, Kailua-Kona, Kaloko, Kealakekua, or Kohala to start reestablishing yourself in the banking system!
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 four locations in Hawaii in cities including Hilo, Honolulu, Kaimuki, and Pearl City.
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
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.
You do not need a perfect banking history to open an Essential Checking account through Radius Bank. Designed to help you manage your money, this is an excellent opportunity to start over.All you need is a $10 minimum opening deposit. After that, you have no minimum balance requirements. There is a monthly service charge of $9, but you can apply for a free checking account after 12 months of positive banking history.
You can easily apply online for all Radius banking services. Essential Checking comes with:
- Free MasterCard® debit card
- Free mobile banking with check deposit
- Free online banking with bill pay
- No minimum balance
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 Hawaii? Has there been a change in any of the listings? Please let us know.