Trying to get bank accounts with bad credit used to be a challenge. Most big banks did not want your business and smaller, regional banks created second chance checking accounts to fill the void. These second chance bank accounts usually came with monthly fees or account minimums and didn’t offer the features provided in other accounts.
During the past several years, however, new and innovative banks and credit unions have begun to offer checking accounts with no bank fees or monthly minimums and even offer better perks and benefits than the accounts provided by the major banks. These banks and credit unions make it simple to get a no credit check bank account and they don’t use ChexSystems.
Most of these new banks are actually financial technology (“fintech”) companies that have partnered with a bank to offer the new accounts. That means your money is safely held at the bank which is insured by the FDIC while giving those with bad credit or a challenging banking history a fantastic way to get back into banking.
If you have bad credit, there’s no reason to settle for an inferior bank account.
The Best Bank Accounts for Bad Credit
Open an account today!
U.S. Bank is the fifth largest bank in the country with the majority of its 2,000+ branches located in 26 states mostly located in the west and midwest. When you open a U.S. Bank Smartly® Checking account and a Standard Savings account, you can earn a cash bonus of up to $1,000. This is one of the most generous checking and savings offers we’ve seen.
U.S. Bank Smartly® Checking at a Glance
- A U.S. Bank Visa debit card
- Online banking and bill pay
- Mobile banking with mobile check deposit
- Send money with Zelle®
- Access to U.S. Bank Smart Rewards™ to reap additional benefits
- No NSF charges for overdraft balances under $50
- No fees at U.S. Bank ATMs
- No surcharge fees at 40,000 MoneyPass ATMs
- Member FDIC
States Where U.S. Bank is Available
If you live in one of the following 26 states where this account is available, you can apply online: AR, AZ, CA, CO, IA, ID, IL, IN, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, UT, WA, WI, WY.
Account Details and Costs
To get an account, you’ll need to make an opening deposit of $25. The monthly service fee is $6.95 but can be waived if you maintain a minimum balance of $1,500 or by having a minimum monthly direct deposit of $1,000. You can also avoid the monthly fee if you are 24 and under, 65 and over, or a member of the military or qualify for one of the four Smart Rewards tiers (Primary, Plus, Premium, or Pinnacle).
Earn Serious Bank from U.S. Bank
You can earn up to $1,000 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account and complete qualifying activities. The offer is subject to certain terms and limitations and is valid through October 31, 2023. Member FDIC.
Banking Made Easy
The U.S. Bank Smartly® Checking account comes with one of the best mobile apps on the market. Over one million customers have given the app an overall rating of five stars. You can manage your entire account from a computer or your smartphone.
U.S. Bank repeatedly makes the list of one of the best banks in the country.
Chime® is one of our favorites for a second chance banking account. Chime accepts almost all customers who apply, even if you have bad or poor credit or have been blacklisted by ChexSystems or the credit bureaus.
Chime at a Glance
- NO credit check or ChexSystems
- NO initial deposit required
- NO minimum balance required
- NO monthly or annual fees
- NO NSF/overdraft fees1
- NO foreign transaction fees
- NO fees at over 60,000 ATMs2
- NO fees for mobile and online bill pay
- FREE cash deposits at 8,500+ Walgreens
- Get your paycheck up to 2 days early with direct deposit3
- FDIC insured account up to $250,000
Current offers an innovative account to consumers who want it all without the costs and hassles.
The Current Build account works just like a checking account but also helps you build credit every time you use the card. Sign-up takes about 2 minutes and Current has extremely high acceptance rates.
Current at a Glance
- NO credit check
- NO minimum balance
- NO deposit required to open an account
- NO fees at over 40,000 ATMs in the U.S.
- Get your paycheck up to 2 days early with direct deposit
- Earn 4.0% APY on your balance up to $6,000 with direct deposit; earn 0.25% APY without
- Earn points for unlimited cashback at participating retailers
- Send money instantly for free
- An elegant but simple smartphone app
- 24/7 member support
- FDIC insured account up to $250,000
Most people know Chase and with over 15,000 ATMs and 4,700 branches across the country, the Chase Secure Banking account might be a good fit for a second chance bank account.
Chase Secure Banking at a Glance
- NO credit check
- NO ChexSystems
- NO minimum deposit to open
- NO overdraft fees
- FREE access to over 15,000 Chase ATMs
- FREE Chase Online Bill Pay
- FREE money orders and cashier’s checks
Want to earn cash back on Walmart purchases – up to $75 each year? Then you might love the Walmart MoneyCard. It’s a debit card that has some strong features such as cashback on Walmart purchases, overdraft protection, interest on your savings, and a mobile app that lets you track your purchases and deposit funds into your account.
Walmart MoneyCard at a Glance
- Easy approval: no ChexSystems or credit check
- No initial deposit is required and there are no monthly minimums
- Deposit cash for free at any Walmart store and it shows up 10 minutes later
- Deposit checks using the Walmart MoneyCard smartphone app
- Easily request multiple cards for family use1
- Manage your account from your computer or the smartphone app
- 3% cashback on Walmart.com purchases, 2% cashback for Walmart fuel stations, and 1% cash back for use in-store2
- Earn 2.00% APY on money you set aside in a free savings account3
- With qualifying direct deposits4, you can opt-in and enjoy overdraft protection of up to $200 on eligible purchases5
- No monthly fee when you direct deposit $500+ in the previous monthly period. Otherwise, there’s a $5.94 monthly fee.6
The Walmart MoneyCard is available in all 50 states, Washington D.C., and Puerto Rico.
The SoFi Checking & Savings account is offered by SoFi Bank. It’s a checking AND savings account and we love that. Plus, they don’t use ChexSystems or your credit report 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. You don’t need to make an opening deposit to get an account and SoFi never charges monthly maintenance fees. You’ll have access to a large and fee-free ATM network along with a generous cashback program.
Using the SoFi direct deposit option unlocks additional benefits. First, if you overspend a bit, SoFi will cover up to $50 with no overdraft fees. Second, you’ll receive a much higher interest amount of 4.50% APY on savings account balances and .50% APY on checking account balances.
If you decide not to utilize direct deposit, you’ll receive 1.20% APY on savings balances. Finally, when you set up direct deposit from an employer, SoFi will credit your account up to $275 (depending on the amount of your direct deposit).
The sign-up process can take less than 60 seconds. With over 5.5 million members, SoFi is a bank you can count on!
SoFi 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. I’ve had some issues with ChexSystems in the past and SoFi seems to be the perfect bank.
Claire M., SoFi Customer
Wells Fargo changed their 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.
Wells Fargo Clear Access Banking at a Glance
- No minimum daily balance required
- 11,000 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
GO2bank is the checking account created by fasting-growing Green Dot Bank. 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 secured credit card, which has no annual fee and no 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. If you open an account online, there is no opening deposit requirement.
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 4.50% on all money in the savings vault up to $5,000.
It’s a tall order to “Make People Happy” when it comes to banking, but that’s the stated mission behind mph.bank.
Powered by Liberty Savings Bank (established in 1889!), the mph.bank Fresh account does use ChexSystems, but as long as you don’t have more than 3 charge-offs totaling $1,000 or reports of fraud approval rates are very high. Fees for the account include a $9 monthly service fee and a $10 overdraft fee.
mph.bank Fresh Account at a Glance
- $0 initial deposit to open account
- Send and receive money with Zelle®
- Access your account with your phone or computer
- When coupled with a free savings account, earn up to 5.00% APY
- Optional ability to round up charges and stash the cash into savings
- Get paid up to 2 days early with direct deposit
- Access to over 55,000 fee-free ATMs
Lili was custom-made for freelancers and independent contractors who are operating as sole proprietors and single-member LLCs and we really like their offering. Lili aims to approve most accounts within 2-3 days, but some accounts are approved in 2-3 hours.
Lili offers a checking account and Visa debit card with no opening deposit or minimum balance requirement, no hidden fees, no credit check, and no ChexSystems. Lili makes getting your account easy!
Lili at a Glance
- FREE business VISA debit card
- FREE (and very user-friendly) mobile app
- NO minimum balance
- NO NSF charges or fees
- NO credit check or ChexSystems
- NO fees for incoming wire transfers
- Receive direct deposit funds 2 days earlier than many banks
- Mobile check deposit
- Unlimited fee-free transactions
- Takes 3 minutes to apply
Application Process
You can set up an account online. If you’re a freelancer, you should receive approval and account access almost instantly. All others (Sole Proprietor, Single-Member LLC, Multi-Member LLC, General Partnership, Limited Liability Partnership, or S Corp) can take a couple of days to get approved. You can fund your account using a mobile check deposit, direct deposit, ACH transfer, or by linking your Venmo, PayPal, or Cash App account.
Acorns was built to give everyone the tools to manage their finances which makes it one of our top picks.
It takes about 2-3 minutes to sign up and not only do you get a checking and savings account, but you also have access to an investment account once you’re ready to consider that. There is a $3 monthly fee that is easily covered by the ATM fee reimbursement and other goodies included with the account.
Acorns at a Glance
- FREE heavy metal tungsten Visa® debit card
- FREE bank-to-bank transfers
- FREE physical check sending online or through the mobile app
- FREE mobile check deposits
- FREE or reimbursed ATM withdrawals nationwide
- NO minimum balance or overdraft fees
- NO credit check; ChexSystems OK
- Get paid up to 2 days earlier with direct deposit
- Optional Real-Time Round-Ups where the spare change from each transaction is transferred to savings
- FDIC insured
If you’ve struggled with poor credit or ChexSystems, Acorns might be the perfect account.
Like David slaying Goliath, Dave is taking on big banks and their predatory ways. The Dave checking account is a mobile-centric bank account that doesn’t use ChexSystems or your credit score for account approval.
The only fee Dave charges for the account is a $1 monthly maintenance fee. There are no monthly minimum balance requirements, no overdraft fees, and no fees at over 40,000 MoneyPass® ATMs in 7-Eleven and other spots near you. There’s no opening deposit requirement to get your Dave account either.
If you opt for direct deposit and get paid on a regular basis, Dave will spot you up to $250 if your balance isn’t enough to cover an incoming charge. That feature won’t cost you any fees or interest charges.
Just like a savings account, you can set aside money in “Dave Goals” for any special purpose such as a vacation or car purchase. While you work toward your savings goal, Dave will pay 4.00% APY on your money.
Finally, Dave has partnered with a number of businesses around the country to help accountholders find side gigs. This is a unique feature we’ve not seen with any other checking account. You can find work when you need it, right from the Dave app. Between instant-pay surveys and easy-apply side hustles, there are thousands of ways to get paid.
We like the robust Dave smartphone app. Customers like the app, too. Dave is rated 4.8 out of 5 stars in the Apple store and 4.4 out of 5 stars in the Google Play store.
KeyBank’s Hassle-Free Account® is a no monthly maintenance fee checking account that offers access to 1,000 branch locations and 40,000+ ATMs fee-free. There is a $10 minimum deposit to open an account.
A Smartphone App Built for You
KeyBank has a popular smartphone app with strong customer ratings on both Apple and Android devices. The app allows you to set customer alerts, lock or unlock your debit card, deposit checks, and much more:
- Easily send or receive money through Zelle®
- Mobile payments with Apple Pay, Samsung Pay, and Google Pay
- View and download up to 7 years of statements
- Never miss a payment with online bill pay
- Sign on with fingerprint or face ID
- Locate branch or ATM locations
- Order paper checks
States Where KeyBank is Available
You can apply online if you live in one of the following 15 states: Alaska, Colorado, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, or Washington.
EasyUp Makes Savings a Snap
Once you’ve opened your Hassle-Free Account® account, you can add a free Key Active Saver savings account. EasyUp is a free feature that allows you to automatically save an amount that works for you – from 10¢ to $5 – every time you make a debit card purchase. Send it directly to your KeyBank savings account and let it grow, or to a company to pay down debt faster. The choice is yours, and you can change it anytime.
Our Verdict
We like KeyBank. We think the Hassle-Free Account® account offers a path to financial wellness. And, you can get an account today!
The Capital One 360 Checking Account uses a proprietary approval process that does not include ChexSystems and might be a solid option for those who have had past financial challenges.
Available in all 50 states and the District of Columbia, Capital One acts more like an online bank than one with over 400 branches in a few states. Its highly-rated smartphone app gives customers full control of their account and you can access everything from a computer, too.
Capital One 360 Checking at a Glance
- No opening deposit is required
- No monthly or annual fees
- No minimum balance and no overdraft fees
- Add cash to your account at CVS® locations.
- No-fee access to over 70,000 ATMs nationwide
- No foreign transaction fees when traveling abroad
- Deposit checks and pay bills with the smartphone app
- Send and receive money with Zelle®
- Early direct deposit feature
- Monitor your credit score with Capital One’s CreditWise feature
- FDIC insured account up to $250,000
NorthOne is a fast-growing company built specifically around business banking solutions for freelancers, entrepreneurs, and small business owners. In addition to dramatically streamlining the application process, NorthOne doesn’t check your credit and doesn’t use ChexSystems.
NorthOne at a Glance
- FREE business Mastercard debit card
- FREE access at over 40,000 ATMs nationwide
- FREE online and mobile app
- FREE live chat (not a chatbot), telephone, or email support
- FREE in-app invoice creator
- NO minimum monthly balance requirement
- NO NSF fees
- NO ACH transfer fees
- NO credit check or ChexSystems
Axos Bank has consistently ranked at the top for online checking accounts and their Rewards Checking account is our favorite. Axos makes getting an account easy because they don’t check your credit or use ChexSystems. All you need is a valid ID and social security number.
Axos Bank Rewards Checking at a Glance
- Unlimited domestic ATM fee reimbursements
- Zero monthly maintenance fees
- Zero minimum monthly balance requirements
- Zero overdraft or NSF fees
- Up to 3.30% APY interest on your balance
- Manage your account from your smartphone or computer
- Highly rated mobile app
- Highly rated customer service experience
- Peer-to-peer payments with an email or mobile number
- Only $50 to open an account
- Use the code “SUNNYBONUS” as part of the $300 promotion
The BMO Smart Money checking account might be a great fit as long as you don’t have any previous incidences of fraud on your ChexSystems report. Approval is immediate and the process takes about 5 minutes.
If you’re 24 or younger, the account comes with no monthly fees. For those 25 and older, the monthly fee is $5 with no way to waive that amount. You can avoid a $2 monthly fee if you opt for paperless statements.
The account is available in all 50 states and Washington D.C. BMO has around 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Washington, and Wisconsin.
BMO Smart Money Account at a Glance
- Access to 40,000+ fee-free ATMs
- Send and receive money with Zelle®
- No overdraft fees
- No credit check
- Mobile check deposits
- $25 opening deposit required
Upgrade is a digital banking platform providing a range of financial services, including checking accounts, personal loans, and credit cards without annual fees.
The Upgrade Rewards Checking Plus option stands out with its attractive benefits: earn up to 2% cash back on day-to-day expenses, capped at $500 annually, and 1% cash back on all other purchases.
An “Active” Upgrade Rewards Checking Plus account comes free of account fees, ATM fees, and overdraft fees, and it doesn’t require a minimum balance or a minimum opening deposit. You can also add a free Upgrade Performance Savings account and earn up to 4.81% APY on your savings. An Active Account requires a $1,000 minimum direct deposit every month.
But if you choose not to or cannot meet the monthly direct deposit requirement, the account cashback program is reduced from 2% to 1% and there will not be any ATM fee reimbursements. In our view, that’s still a very strong offering with very few fees.
Managing your transactions is effortless, facilitated through either an intuitive online dashboard or the convenient Upgrade mobile app, available for both iOS and Android users.
The Upgrade Rewards Checking Plus account has above average approval rates.
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.
Opening an account is easy and Varo doesn’t check your credit or use ChexSystems. Varo doesn’t even require an initial deposit to open an account, either. There are never any monthly maintenance fees, account balance minimums, overdraft fees, foreign transaction fees, transfer fees, or debit card replacement fees.
Varo’s recent bank charter has them innovating more than ever. They have a very strong cashback program, a payroll advance option, and have started to offer their customers a secured credit card called Varo Believe.
Finally, if Varo receives a payroll notification before your payday, it can deposit your money more quickly than many banks.
No matter your banking past, Navy Federal Credit Union offers traditional checking for all members 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 several account options, but we recommend the Free EveryDay Checking account.
Navy Federal Credit Union at a Glance
- No monthly service fee
- No minimum balance requirement
- No opening deposit requirement
- Free Visa debit card with Zero Liability protection
- Free access to 30,000 ATMs nationwide
- Free mobile check deposits
- Free bill pay
- Free traditional checks
- Dividends credited monthly
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 account. 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:
Go Further Account at a Glance
- Access to over 30,000 fee-free ATMs
- Unlimited check-writing
- Free EMV-equipped debit card with built-in rewards
- Online and mobile banking tools
- Free bill pay service
- Design the face of your debit card
Fifth Third Bank offers easy checking accounts to anyone without a history of fraud or a debt owed to the bank.
You have a choice of multiple checking options with Fifth Third. Their Momentum Checking account is one of their best accounts for those looking to rebuild their banking relationship. With no minimum deposit and no minimum balance required, banking is simple.
The contactless debit MasterCard offered by Fifth Third makes transactions fast and safe. You can also safely track your purchase online or through the mobile app.
Fifth Third at a Glance
- Mobile alerts for transactions
- Easy Deposits program
- Access to more than 50,000 fee-free ATMs nationwide
- Online and mobile statements
States Where Fifth Third Bank is Available
You can apply online if you live in one of the following 10 states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, or West Virginia.
Novo understands small business owners and makes it easy to open and manage an account. As an online-only bank, you’ll find Novo strikes the right balance between technology, human touch, and real-world benefits. Here are some of our favorite features for Novo Business Checking:
- NO monthly fees
- NO minimum balance requirement
- NO ATM fees
- NO credit check or ChexSystems
- FREE Mastercard debit card
- FREE mobile app
- FREE transfers, mailed checks, and incoming wires
- FREE invoicing to create, send, and track invoices
- FREE mobile check deposit
Application Process
It takes about 10 minutes to sign up for a Novo account. You’ll need personal and business information, which may include a social security number, business tax ID, and business formation documents. They do not check your credit or use ChexSystems.
Novo is growing quickly. Their offering is popular with small business owners. The account approval process is currently taking 1-2 business days and once you’re approved, you can get full access to your account with a simple $50 deposit.
United Bank does not use ChexSystems or a credit report when you apply for their Essential Checking account with them.
Essential Checking has no overdraft fees and no minimum balance requirements. All that you’ll need to get it started is a $25 opening deposit. You’ll also gain access to their mobile smartphone app where you can deposit checks and monitor your account.
There is no monthly fee for customers 25 and under. For customers 26 years of age or older, there is a $5 monthly fee with eStatements and a $7 monthly fee if you want paper statements.
You can apply for a United Bank checking account if you live in Washington D.C. or one of the following 7 states: Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, or West Virginia.
No. Fees. Period. That’s how Discover Bank promotes its Cashback Debit Checking Account. And, after conducting our research, we can say that’s mostly true. In fact, the only fees you’ll ever incur are for outgoing wire transfers and service charge fees if you use a non-Discover ATM if it is not part of the 60,000+ ATMs in their no-fee network.
As long as there are no past incidences of fraud on your ChexSystems report, Discover might be a great account for you. The only negative? There is no way to deposit cash directly into the account.
Discover Bank® Cashback Debit Checking Account at a Glance
- 1% cash back on up to $3,000 in debit card purchases each month
- Access to 60,000+ fee-free ATMs; $510 cash withdrawal limit per day
- Fee-free opt-in overdraft protection transfer service
- Get paid up to 2 days early with direct deposit
- Send and receive money with Zelle®
- No monthly fee (no balance or activity requirements)
- No fee for insufficient funds
- Mobile check deposits
- No deposit to open
Ally Bank has been one of the most highly rated online banks for the past several years. It’s not because they have the most features, but because they consistently make their customers delighted with the features the bank offers.
For starters, there’s no minimum opening deposit required. Ally doesn’t charge any monthly maintenance fee and there is no overdraft fee (more on that below). You’ll have access to 43,000+ ATMs and Ally will reimburse you up to $10 per statement cycle if you get charged for using another institution’s machine.
You’ll become eligible for Ally’s overdraft program called CoverDraft 30 days after depositing a total of $100. Ally will activate CoverDraft automatically and send you an email when they do. You can turn CoverDraft off at any time, as long as your account balance isn’t negative. Otherwise, Ally will decline the transaction without payment. In either case, you won’t be charged an overdraft fee.
We like that you can use Zelle to send and receive money, get paid up to 2 days sooner with early direct deposit, and deposit checks remotely with Ally eCheck Deposit. We also like that Ally has high approval rates as long as you don’t have a ChexSystems or EWS fraud alert in your past.
To get the bonus, use code GET200 by Nov. 30, 2023. Make sure to fund your account within 30 days of opening it and set up one or more direct deposits totaling $1,500 within 90 days. Ally will send your bonus within 30 days of your account receiving $1,500 in qualified direct deposits.
The Citi® Access Checking account is a solid option if you’ve been blacklisted by ChexSystems or Early Warning Systems. As long as you haven’t been flagged for fraudulent behavior and don’t owe Citibank an outstanding amount, approval rates for this account are good.
There are no monthly service fees for the first 3 months after opening the account. The $5 monthly service fee can easily be waived after that time by depositing at least $250 per month.
We also like that there are no overdraft or returned item fees because if you don’t have enough money in your account, the item will be returned.
Citibank Access Checking at a Glance
- 65,000+ fee-free ATMs
- Send money to almost anyone with a U.S.-based bank account through Zelle®
- No overdraft or NSF fees
- $5 monthly fee can be waived with $250 in qualified direct deposits
- $0 liability for unauthorized charges
- Available in all 50 states and Washington DC
- No minimum opening deposit
What Do Banks Check During the Application Process?
Before traditional banks and credit unions approve a checking account, they will oftentimes perform a soft pull of your credit report. They may also check your credit score and if you’ve had past credit report challenges, this may cause your application to be denied.
The more pervasive tool banks and credit unions use is a company called ChexSystems. This is a little-known consumer reporting agency (CRA) that provides information about any past checking accounts which have been closed and the reason for the closing. If you have negative marks on your ChexSystems report, the bank may choose to deny your new account application.
Our list of no credit check bank accounts includes financial institutions that use neither of these ChexSystems or credit checks to approve accounts. These aren’t second-rate accounts by any means. They come with all the bells and whistles of accounts offered by big banks and in many cases, with more attractive account features and benefits.
The 2 Types of Banks That Offer Checking Accounts for Bad Credit
The types of financial institutions that offer consumers bank accounts with bad credit fall into two main categories:
- Large national banks or credit unions – These banks have several thousand branch locations. These companies may not offer as many account features and may also charge monthly fees, but they have a local presence many consumers feel is important to their banking experience.
- Online-only and technology-infused banks – These banks have built their customer base with feature-rich online bank accounts for bad credit. They have no fees and offer smartphone and online apps that make banking from anywhere easy. The lack of an expensive branch network allows them to be focused on meaningful improvements in fees, costs, and service.
What Features Should I Look For in a Bank Account for Bad Credit?
- No or Low Fees. If you’ve had financial challenges in the past, you’re no stranger to extra fees. Even though you’re looking for a no credit checks bank account, you shouldn’t be paying any exorbitant fees for your banking services. The best banks have no monthly fees, no overdraft fees, no ATM fees, and no money transfer fees.
- Minimum Deposit and Balance Requirements. Some of our recommendations require a small initial deposit to get started. Most of the banks don’t require it. But when you’re getting back into banking, we don’t think any of your options should include banks or credit unions that require a minimum monthly balance in order to keep the account open. Full stop.
- Depositing Cash. Many online-only banks have partnerships with large retailers such as Walgreens, CVS, 7-Eleven, and Walmart where you can deposit cash and have it show up in your account immediately. Some retailers charge fees while others don’t and that largely depends on the deal they have with the individual online bank. Large banks with local branches offer access to their own branch and ATM network. A local bank branch might be the best option if you need to deposit large chunks of cash.
- ATM Access and Fees. One of the challenges other online bank accounts for bad credit can present is the lack of an ATM network. However, all of our recommendations have joined national ATM networks with locations in grocery stores, shopping malls, and retailers such as Walgreens, CVS, Walmart, and 7-Eleven.
- Mobile and Online Experience. Not all banking apps are created equal. In fact, some are far superior to others. Look for review scores that can provide insight into the quality of the mobile and online banking experience.
- Customer Service. Customer service used to be defined as being able to talk with another human. It has now evolved into live chat, email, robust documentation, and (sometimes) live interaction.
- Interest Rate. One area where new banks have made real progress is paying interest on your balance… no matter what that balance is. And they generally pay an interest amount far above the big banks. On the other hand, most traditional banks do not pay interest on your account balance unless you hold a significant minimum balance.
- Cashback Rewards. It is rare for banks to offer a rewards program tied to a checking account. This is where you either get points or cash back every time you use your debit card. If you plan to use your debit card a lot, look for a bank or institution that offers this kind of program.
Frequently Asked Questions About No Credit Checks Bank Accounts
Here are some of the most often asked questions when it comes to looking for bank accounts with bad credit.
Can I get a checking account with bad credit?
If you couldn’t already tell, the answer is yes! You can still get a checking account with bad credit. In addition to our options above, you can opt for a second chance checking account or a no ChexSystems checking account.
What is a second chance checking account?
A second chance checking account is a type of checking account designed for people with bad credit or a history of banking problems. These accounts often have higher fees and more restrictions, but they can help you rebuild your credit and establish a positive banking history.
What is a non-ChexSystems checking account?
A non-ChexSystems checking account is a type of checking account that doesn’t require a ChexSystems check, which is a report that tracks your banking history. These accounts can be a good option if you have negative marks on your ChexSystems report.
Can I open a checking account online with bad credit?
Yes, many banks and credit unions offer online account opening for second chance checking accounts, non-ChexSystems checking accounts, and obviously online bank accounts for bad credit that are already web-based.
What fees should I expect with a checking account for bad credit?
You may expect higher fees than with a traditional checking account, such as monthly maintenance fees, ATM fees, and overdraft fees.
How can I improve my credit with a checking account for bad credit?
One way to improve your credit with a no credit checks bank account is to use it responsibly, which means avoiding overdrafts, paying fees on time, and maintaining a positive balance.
What documentation do I need to open bank accounts with bad credit?
You’ll typically need to provide your name, address, Social Security number, and a valid government-issued ID, such as a driver’s license or passport, to open bank accounts with bad credit. Some banks may also require proof of income or residency.
Will my no credit checks bank account be FDIC insured?
All banks are required to provide their customers with FDIC insurance. Likewise, credit unions offer this kind of insurance through the NCUA.
Need A Local Bank or Credit Union? Here’s The List of Best Second Chance Banking in Every State.
Some banks and credit unions offer so-called second chance checking accounts to help people rebuild their credit and improve their banking history. The table below will take you through all the various banks and credit unions in your state that offer these types of accounts.
Takeaway
A bank account is one of those required things in life. You need access to a debit card for purchases or direct deposit from an employer. A bank account is almost the only way to enjoy these basic services. But if you’ve experienced financial challenges or unexpected events — and the ensuing bad credit — it may be difficult to open a new bank account.
The good news is that you can still open free online bank accounts for bad credit with no credit check, no monthly fees, or minimum balance requirements. CheckingExpert has helped tens of thousands of people just like you open no credit check bank accounts… no credit check bank accounts that give you all the checking account features you need and deserve without the exorbitant fees many banks impose.
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1Eligibility requirements apply. Overdraft only applies to debit card purchases and cash withdrawals. Limits start at $20 and may be increased up to $200 by Chime. See chime.com/spotme.
2Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Cash deposit or other third-party fees may apply.
3Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We 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.
4Customers are limited to three $1,000 cash deposits at Walgreens each day and $10,000 each month.
5Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. Once you are approved for a Chime Checking Account, see your issuing bank’s Deposit Account Agreement for full Pay Anyone Transfers details. Please see the back of your Chime debit card for your issuing bank. See Terms and Conditions.
6The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of May 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
7Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We 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.
1Family Accounts: Activated, personalized card required. Other fees apply to the additional account. Family members age 13 years and over are eligible. Limit 4 cards per account. See Deposit Account Agreement for details.
2Cash back, up to $75 per year, is credited to card balance at end of reward year and is subject to successful activation and other eligibility requirements. Redeem rewards using our website or app. You will earn cash back of three percent (3%) on qualifying purchases made at Walmart.com and in the Walmart app using your card or your card number, two percent (2%) at Walmart fuel stations, and one percent (1%) on qualifying purchases at Walmart stores in the United States (less returns and credits) posted to your Card during each reward year. Grocery delivery and pickup purchases made on Walmart.com or the Walmart app earn 1%. For the purposes of cash back rewards, a “reward year” is twelve (12) monthly periods in which you have paid your monthly fee or had it waived. See account agreement for details.
3Interest is paid annually on each enrollment anniversary based on the average daily balance of the prior 365 days, up to a maximum average daily balance of $1,000, if the account is in good standing and has a positive balance. 2.00% Annual Percentage Yield may change at any time before or after account is opened. Annual Percentage Yield is accurate as of 3/1/2022.
4Direct Deposit: Early availability of direct deposit depends on timing of payroll’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. Make sure the name and social security number on file with your employer or benefits provider matches what’s on your Walmart MoneyCard account exactly. We will not be able to deposit your payment if we are unable to match recipients.
5Opt-in required. $15 fee may apply to each eligible purchase transaction that brings your account negative. Balance must be brought to at least $0 within 24 hours of authorization of the first transaction that overdraws your account to avoid the fee. We require immediate payment of each overdraft and overdraft fee. Overdrafts paid at our discretion, and we do not guarantee that we will authorize and pay any transaction. Learn more about overdraft protection.
6No monthly fee with qualifying direct deposit, otherwise $5.94 a month. Waived when $500+ is loaded in the previous monthly period. First monthly fee occurs upon first use, the day after card activation or 90 days after card purchase, whichever is earlier.
