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.
One option you have is to choose a bank or credit union that does not rely on ChexSystems when evaluating new customers. These financial institutions are known as non-ChexSystems banks or credit unions.
If this isn’t feasible, a second option is to consider opening a second chance bank account, which is a type of checking account designed specifically for customers who may have negative history with ChexSystems.
Whichever option you choose, we’ve got you covered. 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!
Our Top Picks: Second Chance Bank Accounts
Open an account today!
Chime® is our top choice 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
Deposit Cash for FREE at Over 8,500 Walgreens
Chime has made depositing cash easy. All you have to do is go into a Walgreens store, hand the cashier the cash you want to deposit along with your Chime card, and the deposit will show up in your account immediately. This offers Chime members more walk-in locations than any other bank in the U.S.4
Instantly Transfer Funds
You can transfer funds to friends and family, Chime members or not… and they can claim their money instantly5 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.
Savings Made Easy
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 2.00% Annual Percentage Yield (APY)6 in interest on that savings account.
Customers First
If you use direct deposit with your Chime account, you can get your paycheck up to 2 days early7. And Chime is just saying no to big bank NSF charges with a fee-free overdraft program up to $200.
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, N.A. or Stride Bank, N.A.; Members FDIC. See additional disclaimers below.
Most people know Chase and with over 16,000 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 16,000 Chase ATMs
- FREE Chase Online Bill Pay
- FREE money orders and cashier’s checks
What to Know About the Approval Process
Opening the Chase Secure Banking account has some important qualifiers. First, Chase verifies your name, address, and social security through Experian, but doesn’t pull a credit report or credit score. Chase doesn’t use ChexSystems for this account, but the bank does use Early Warning Services (EWS). Additionally, if you’ve had an account closed by Chase in the past, your application will not be approved. Past account closures can include missteps such as non-payment of fees, excessive overdrafts, or suspected fraud.
Finally, Chase gives you the opportunity to open your new account online or by taking a printable coupon to a branch location. We strongly recommend you apply online as branch locations have been known to use ChexSystems during the approval process.
Fees
Chase doesn’t offer overdraft services with this account as you can only spend the money you have available and the account does not include paper checks. You should also know that using non-Chase ATMs can cost from $3.00 to $5.00 per transaction.
Chase Secure Banking carries a $4.95 monthly service fee that cannot be waived. But combined with all the free services and the $100 cash bonus when you use the card for 10 purchases within 60 days, the monthly fee doesn’t pose a problem for most customers.
If you’ve wanted to bank with Chase and wondered if you’d qualify, we think you’re going to be really happy with the Chase Secure Banking account.
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
- NO minimum monthly balance requirement
- NO NSF fees
- NO ACH transfer fees
- NO credit check or ChexSystems
- 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
Banking Services
NorthOne doesn’t require a minimum account balance and charges a $10 monthly fee that includes unlimited transactions in your account. These include ACH payments, bill pay, debit card usage, mobile deposits, and transfers. The only other fee is $15 for wire transfers.
You can also grant read-only access to employees or your accountant or bookkeeper. This keeps your account safe while also giving access to those who need it.
Integrations
With NorthOne business banking, you can connect your account to an almost unlimited number of third-party apps. NorthOne integrates with business tools including Paypal, Stripe, Square, Etsy, Shopify, Airbnb, Amazon, Venmo, Toast, Uber, Lyft, Quickbooks, FreshBooks, Wave, Expensify, and many more. Through these integrations, you can sync transaction details, collect payments, see and pay invoices, send payroll, pay contractors, and more.
If creating and sending invoices, quotes, and estimates is critical to your business, NorthOne offers a free stand-alone invoice creator that integrates seamlessly with the banking app. We’ve tried it and think it’s an elegant solution.
Application Process
NorthOne targets account approvals within one to two business days. Information required to open an account includes name, address, and social security number or tax identification number. If applicable, NorthOne may ask for a copy of your business license and business formation documents. After you’re approved, you’ll need to make a $50 minimum opening deposit.
The SoFi Checking & Savings account is offered by SoFi Bank. It’s a checking AND savings account on steroids and we love that. Plus, they don’t use ChexSystems to approve accounts. This makes it a strong contender for a second chance bank account.
SoFi at a Glance
- No account fees
- No minimum balance
- No overdraft fees
- No fees at over 55,000 ATMs
- Access to SoFi member benefits like career coaching and financial advising
- Automated bill pay
- Freeze debit card on-the-go
Managing Your Money Made Easy
You get a debit MasterCard and a 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 3.75% APY on savings account balances and 2.50% APY on checking account balances. If you decide not to utilize direct deposit, you’ll receive 1.20% APY.
Making Money Made Easy
The $275 bonus comes in two parts. When you deposit at least $10, SoFi will credit your account $25. When you set up direct deposit from an employer, SoFi will credit your account up to $250 (depending on the amount of your direct deposit) and bump the interest rate you earn to 3.75% APY. The bonus and interest rate are some of the highest we’ve seen.
With over 4.7 million members, SoFi is a bank you can count on!
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.
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 can be accidental), writing bad checks (a deliberate act), having a low credit score, or simply 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 personal loan, a bad banking report can mean you’re denied a checking account. That’s where second 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 second chance bank accounts with tight restrictions and controls while also demanding high fees. This is a trap too many people fall for because they don’t know where to find a good second chance banking account or have been told to go to a payday loan or a check cashing company. 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 the three major 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 into banks’ decisions to extend credit, but it can impact your ability to open a bank account or write checks. And in today’s tech-forward 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 Banking Account and a No-ChexSystems Bank Account?
There is a difference between a second chance banking 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 is Chime.
Banks offering second chance bank accounts will almost always refer to ChexSystems during the approval process. 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 ‘traditional’ checking or savings account.
Again, finding these banks and credit unions is hard. The staff here at CheckingExpert.com has reviewed over 1,000 different checking accounts and we have the most comprehensive and accurate list of second chance bank accounts 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 banking account with a bank debit card is still a superior option for most consumers.
The ease and convenience of adding money to 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 recommendations offer accounts to residents in all 50 states and Washington DC.
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 that 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 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 bank accounts come with 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.
With that being said, there are some second chance bank accounts that only offer ATM cards. These cards can only be used to deposit and withdraw cash at ATMs. If that’s the case, it will be clearly noted in our breakdown of the checking account.
What are the fees associated with my second chance banking account?
Chime and SoFi have no monthly fees. Some of the remaining banks have low monthly fees that are detailed above for complete transparency.
Are second chance bank accounts 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.com 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 and updated regularly.
The Best Second Chance Bank Accounts by State
Unfortunately, most major banks don’t offer second chance banking accounts, but many community banks and credit unions have them under various names, such as Opportunity Checking and Fresh Start Checking.
Our staff regularly updates the list of banks offering second chance banking 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 card debt, checking account issues, or bounced checks, CheckingExpert.com 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, 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 November 17, 2022. 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.
