If you’ve recently been denied a checking account because of past banking mistakes, you’re not alone. About 85% of banks and credit unions use databases managed by ChexSystems, Early Warning Services (EWS), or Telecheck to share data about checking account holders. So, if you’ve been blacklisted at one bank, it’s almost a sure bet you will be blacklisted at most other banks. And that information is kept in the databases for five years, making getting an account difficult and frustrating.
However, a second chance checking account offers you another opportunity at banking. Some banks and credit unions offer second chance banking accounts expressly for people who have negative marks in ChexSystems, EWS, or Telecheck.
CheckingExpert has helped thousands of people just like you open second chance banking accounts. We’ve selected the best accounts 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!
The Top 10 Banks For Second Chance Banking
Open an account today!
Chime is a fast-growing internet-only financial company and our top choice for a second chance bank account.And, best of all, 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.
Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts fees1, NO credit check, and NO CheckSystems. Opening an account is super easy. It takes about 2 minutes and you don’t have to make an initial deposit. Here’s what we like:
No Monthly Fees
For the past couple of years, Chime’s huge growth has come at the expense of the big banks and their outrageous fees. And it’s one of the best features of a Chime account. There are no monthly or annual service charges, no minimum balance requirement, no foreign transaction fees, no fees at over 60,000 ATMs2, and no fees for mobile and online bill pay.
Smart Technology
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.
You can transfer funds to friends and family, Chime members or not… and they can claim their money instantly3 without any additional apps. The Chime app also has a series of notifications that you can turn on or turn off so you stay in complete control. Misplaced or lost your card? You can instantaneously turn off your card using the app. No wonder over 300,000 customers have given the app a 5-star review.
Customers First 
Chime was one of the first to offer a “round up” option. If you use your Chime card on a purchase of $10.65, Chime gives you the option of automatically rounding up to $11.00 and putting the remaining $.35 in your free Chime savings account. And that adds up over time! Plus, Chime pays 0.50% Annual Percentage Yield (APY)4 in interest on that savings account.
If you use direct deposit with your Chime account, you can get your paycheck up to 2 days early5. And Chime is just saying no to big bank NSF charges with a fee-free overdraft program up to $200. Finally, Chime just recently launched their Credit Builder credit card with no interest and no annual fee. We don’t think there is another company innovating for their customers like Chime.
Get a Chime Account Today!
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank or Stride Bank, N.A.; Members FDIC. See additional disclaimers below.
Nearside is a fast-growing company built specifically around business banking solutions for entrepreneurs and small business owners. In addition to dramatically streamlining the application process, Nearside requires no minimum deposit, doesn’t check your credit, and has no monthly maintenance fees. Here’s a recap:- FREE business Mastercard debit card
- FREE access at over 55,000 ATMs nationwide
- FREE online and mobile app
- FREE cashback and rewards program
- NO minimum deposit is required when you apply
- NO monthly fee
- NO NSF fees
- NO card replacement fees
- NO ACH transfer fees
Nearside is open for Business. Anyone who is their own boss: a sole proprietor, gigsters (ie. Uber drivers), contractors, freelancers, or part-time entrepreneurs – you all qualify!
Banking Services
Transferring money is easy with Nearside using ACH, bill pay, or paper check. And you can deposit checks using the Nearside app. Need cash? Get it at over 55,000 ATMs. We also like that there are no NSF fees on the account. If you lose your debit card, Nearside will replace it free of charge. Finally, you can link your Nearside debit card to Apple Pay or Google Pay and monitor all your transactions from the Nearside app.
Rewards Program
Cashback and rewards programs can save you a ton of money when you use your Nearside debit card. You can save 5% cashback on car rentals, 4% on hotels and dining, 3% on business vendor spending, and 1% on gas. Nearside Perks is a discount program offered when you use such services as Quickbooks, Constant Contact, Yelp, Indeed, Square, and many more. And for the balance of 2022, Nearside is offering 2.2% cashback on ALL purchases using the Nearside Mastercard debit card!
Application Process
Nearside targets account approvals within one business day. Information required to open an account includes name, address, and social security number or tax identification number. If applicable, Nearside may ask for a copy of your business license and business formation documents. They do not check your credit or use ChexSystems.
Nearside is one of the most competitive business bank accounts for entrepreneurs and small business owners. Their combination of services and offerings, the fast application process, and customer support create an outsized competitive advantage for both the bank and its customers. Every small business owner understands how critical that is for success.
Current is another web-only national bank that has some really great features… and has become one of the fastest-growing checking accounts for consumers who want it all without all the costs and hassles.Why are we featuring Current on our website? It’s simple: they don’t use ChexSystems or your credit report to open a new account. Sign-up takes about 2 minutes and Current has extremely high acceptance rates. But what’s really cool are the incredible features offered with this account:
- NO minimum balance
- NO deposit required to open an account
- NO overdraft fees when you overdraw by up to $100 with Overdrive™
- NO fees at over 40,000 ATMS in the U.S.
- Get your paycheck up to 2 days early with direct deposit
- Earn points for unlimited cashback at participating retailers
- Send money instantly for free
- An elegant but simple smartphone app
- 24/7 member support
Current offers a really unique service it calls Gas Hold Removals. What’s a gas hold? Some gas stations may apply a hold from $50 to $100 when you use a debit card to pump gas. If you only pumped $10 of gas, but the gas station places a $100 hold on your funds, you won’t have access to the $90 difference for up to 3 business days! The Current debit card will immediately refund the hold so you have access to all your funds. We haven’t found that benefit anywhere in the marketplace.
Here’s what’s really important, though. Deposits are FDIC-insured up to the highest possible amount allowed: $250,000. We love the features, we love the smartphone app, and we love Current. That makes us think you’ll love them too.
Get a Current Account Now!
Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Metropolitan Commercial Bank, Members FDIC.
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. When you sign up and deposit at least $10 within 5 days, SoFi will deposit an additional $25 in your account immediately!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 SoFi Money is 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. I’ve had some issues with ChexSystems in the past and SoFi Money seems to be the perfect account.
Gena M., SoFi Money Customer
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
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
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. The account is open to people in all 50 states.
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
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
GTE Financial is based in Florida, but anyone in the 50 states can open an account online for free.
Get a GTE Financial account
Fresh Start Checking through Corporate America Family Credit Union gives you the chance to rebuild a positive checking history. In order to qualify for Fresh Start Checking, you must meet the credit union membership requirements (see below) and keep a minimum balance of $100 in a savings account (they call it a Regular Share Account). There is no minimum balance requirement for your Fresh Start Checking account, but there is a monthly maintenance fee of $10. You receive:- Free Visa debit card
- Free direct deposit
- Free online account access and mobile banking
- Free bill pay
- Access to shared branches and free ATMs throughout the nation
CAFCU wants you to succeed. They provide an online study course to give you the tools you need to better manage your checking account and finances. CAFCU makes it easy for anyone to become a member by asking you to donate $5 to The Hope Group. Your donation goes toward colleges and/or universities to be placed in their general scholarship funds. It’s a good cause and gives you membership to one of the nation’s best credit unions.
Open a CAFCU account
The Peoples Cash Solutions Second Chance Checking Account might be the answer for you. Peoples Bank will open an FDIC insured Second Chance Checking Account for you even if you have bad credit or have been reported to ChexSystems or TeleCheck in the past (except where fraudulent activity has been reported). Available in all 50 states.- Debit MasterCard®
- Personal checkbook
- Online bill pay
- Online banking
- Online money transfers
- Monthly maintenance fee of $4.95
- $30.00 minimum deposit
Who Needs a Second Chance Banking Account?
Banks often refuse to open checking accounts for consumers who are considered a “bad risk.” You could be considered a bad risk for things like bouncing checks (which is accidental), writing bad checks (a deliberate act), having a low credit score, or breaking a bank’s rules by exceeding the daily ATM withdrawal limit or frequently transferring money between accounts.
Many of these activities result in fees being charged to your account and if you have too many fees or are not paying the fees due to a low account balance, you may be considered a bad risk for a bank.
You might think you can get around this by switching banks, but banks use information collected by reporting agencies like ChexSystems, TeleCheck, or Early Warning Services (EWS). These companies are similar to the credit reporting agencies that gather consumer data to compile a credit report.
Just as a bad credit report can mean you’re denied a credit card or a loan, a bad banking report can mean you’re denied a checking account. That’s where 2nd chance banking comes in.
Our research shows that there are some very competitive checking accounts for people who need a second chance. That includes robust checking accounts with mobile and online tools, great customer service, no or low monthly fees, and very high approval rates.
What to Look For in a Second Chance Banking Account
Don’t settle for a second chance bank account with tight restrictions and controls while also demanding high fees. This is a trap too many people fall for because they don’t know about second chance bank accounts or have been told to go to payday loan or checking cashing companies. When you’re shopping around look for things like:
- No minimum balance required
- Low or no monthly fee
- Ability to write checks
- Online and mobile banking
- Debit card access
What Is ChexSystems?
Most consumers aren’t familiar with ChexSystems until they’re denied a new bank account or a merchant declines to accept their check. Briefly, ChexSystems is a consumer reporting agency (CRA) that tracks your checking and savings account activity.
It’s similar to credit reporting agencies Equifax, Experian, and TransUnion, which collect data on consumers’ loan and credit card history. A ChexSystems record doesn’t affect your credit score and doesn’t factor in to banks’ decisions to extend credit, but it can impact your ability to open a bank account or write checks. And in today’s wired world, having access to a checking account for a host of services is critical.
ChexSystems is not responsible for the decision made by banks to deny you a bank account; however, the information reported by banks and credit unions and stored by ChexSystems can result in a denial of a bank account.
The following information may be stored in your ChexSystems report:
- Paid and unpaid insufficient fund items (“NSF”)
- Any kind of fraud
- Uncollected overdrafts, ATM transactions, or automatic payments the bank paid
- Abuse of debit card, savings account or ATM card
- Violation of any banking rules and regulations
- Opening an account with false information
There may be additional reasons a bank reports their customers to ChexSystems, but the above list represents the most common reasons consumers end up in ChexSystems.
What Is Early Warning Services (EWS)?
EWS was created by major banks including Wells Fargo, Capital One, BB&T, JP Morgan Chase, and Bank of America to prevent fraud and reduce risk. Whereas companies such as ChexSystems and TeleCheck focus on keeping records of people who mismanage bank accounts with overdrafts or writing checks on closed accounts, EWS focuses on fraudulent activity.
Its database tracks consumers’ negative interactions with banks, as well as activities such as bank fraud, forgery, check kiting, check alteration, and counterfeiting.
What is Telecheck?
Like the credit bureaus, ChexSystems, and EWS, Telecheck is a consumer reporting agency (CRA) that focuses specifically on consumer information related to checks and bank accounts.
Retailers use Telecheck to determine how risky it is to accept someone’s check, making a decision on the spot whether or not they’ll accept it as payment. If a check is approved by the Telecheck system, the merchant is guaranteed that they’ll get the full amount of the approved check.
Some banks and other financial institutions use Telecheck when deciding whether or not they should allow a consumer to open a checking account. This is done in an effort by financial institutions to reduce fraud and minimize risk as much as possible.
What’s The Difference Between A Second Chance Bank Account And A No-ChexSystems Bank Account?
There is a difference between a second chance checking account and a bank that does not use ChexSystems. Here’s why it’s important:
If you are on ChexSystems and are unable or do not have the time to dispute the negative information, you will want to find a bank that does not use ChexSystems as part of their checking account screening process. Be aware that the bank may perform a quick check on your credit score, and they may use EWS to make sure you have not engaged in fraudulent behavior. These kinds of banks and credit unions are very rare and difficult to find. Our top pick for this group of banks is Chime.
Banks offering Second Chance Checking will almost always check ChexSystems. And they may also use EWS and Telecheck. However, generally, they are prepared to open an account as long as you don’t owe their institution money.
Approval rates for these accounts are high and you’ll enjoy most of the banking options you would expect with a ‘normal’ checking or savings account.
Again, finding these banks and credit unions is hard. The staff at CheckingExpert.com has reviewed over 1,000 different checking accounts and we have the most comprehensive and accurate list of second chance banks available.
Is Second Chance Banking A Better Option Than A Prepaid Card or PayDay Loans?
The right second chance banking account is far more convenient and less expensive than using alternatives like check-cashing businesses, payday loans, and pre-paid debit cards.
Payday lender loans and cards feature a slew of gotchas and fees—even for on-time payments. These types of financial products have been identified as some of the worst available for consumers.
After comparing the pros and cons of each option, the choice seems fairly clear: a second chance checking account with a bank debit card is still a superior option for most consumers.
The ease and convenience of adding money into your checking account without any hidden fees, the consumer protections attached to these cards, and the freedom to spend your money immediately makes them a great option for anyone looking to create a healthy financial lifestyle.
Frequently Asked Questions About Second Chance Banking
Can I live anywhere in the United States to apply for a second chance banking account?
Our top second chance banking recommendation offer accounts to residents in all 50 states.
What information will I need for the application process?
You will need your social security number (or individual tax ID number). In some cases, the bank will ask questions during the application process to verify your identity.
What’s the likelihood my application will be accepted?
We’ve selected these banks based on their extraordinarily high acceptance rates. Our informal surveys indicate an acceptance rate of about 95 percent.
Do these banks require an initial deposit to set up the account?
Chime Bank does not require an initial deposit, while the balance of the banks do. We’ve provided information about the minimum deposit required for each of the banks.
Will I receive a pre-paid card or a checking debit card?
None of our top second chance banks will send you a pre-paid card. They only offer Visa or MasterCard debit cards which are linked directly to your checking account. These debit cards will allow you to select a personal identification number (PIN) and have the full buying functionality that comes with the Visa or MasterCard networks.
What are the fees associated with my second chance checking account?
Chime and SoFi have no monthly fees. The remaining banks have low monthly fees as detailed above.
Will my second chance bank account be FDIC insured?
All of the banks on our list offer FDIC-insured checking accounts. That means the federal government insures the money in your account up to $250,000.
What if I want to bank locally so I have access to a branch office?
The CheckingExpert editorial staff has reviewed bank checking accounts in all 50 states and has outlined those banks and credit unions in each state which offer second chance banking accounts. That list is provided below.
The Best Second Chance Banks by State
Unfortunately, most major banks don’t offer second chance checking, but many community banks and credit unions have them under various names, such as Opportunity Checking and Fresh Start Checking.
Our editorial staff regularly updates the list of banks offering second chance checking in every state. Here’s an overview of these accounts and where you can find them at branches in your area.
Conclusion
If you’ve experienced issues with credit debt, checking account issues, or bounced checks, CheckingExpert can help you get back on track toward a healthy financial future. Our goal is to guide you through the complex financial roadmap to find the banks or credit unions that can best meet your needs.
The vast majority of the time, you can get a bank account with ALL the features and benefits you need with no fees, minimums, or restrictions. We’re glad you found us. Now, let us help you find the right financial partner for you.
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank 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.
3Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. See your issuing bank’s Deposit Account Agreement for full Pay Friends Transfers details
4The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 1, 2021. No minimum balance required. Must have $0.01 in savings to earn interest.
5Early 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.