If you have a history of not using your former checking accounts in the best way possible, you may find it difficult to open a new bank account. This is especially true in California, where 8% of the state’s population is unbanked, which is above the national average of 7.7%.
Banks use a tracking program called ChexSystems to determine if you qualify for a new checking account. If you’ve had too many overdrafts or incidences of non-sufficient funds, for example, your history in ChexSystems could keep you from being approved at another bank.
Luckily, there are plenty of banks in California that offer either non-ChexSystems or second chance checking accounts. That means they either don’t check your banking history at all or have accounts designed specifically for customers who need a second chance.
If you know you have a negative history in ChexSystems you’ll want to keep reading. We’ve pulled together the definitive list of banks that don’t use ChexSystems in California that is designed just for you.
Non-ChexSystems & Second Chance Banks in California
Californians can also choose to open an account with Chime, an all-online financial institution offering user-friendly, fee-free checking accounts even to those with less-than-perfect credit histories.
You’ll maintain control of your funds through its easy-to-use mobile banking app, which includes instant transaction notifications as well as an option to disable your debit card with the simple swipe of a finger.
Chime’s mobile checking account carries no minimum opening deposit, no minimum revolving account balance, no overdraft fees, and no foreign transaction fees. You’ll be able to get instant access to your funds at its network of more than 60,000 fee-free nationwide ATMs.
It’s even got a built-in option to send money to friends and family, via Venmo or Paypal, so you won’t have to go through the extra step of using a third-party system.
Alta Vista offers California residents their own second chance checking account. Called the Opportunity Checking account, it allows you to gain a positive checking history even if you have a ChexSystems record.
You’ll pay a rather steep $20 monthly service fee to gain access to this account. Additionally, your daily ATM withdrawal limit will be $65. Branches are located in Redlands and Rialto.
American United Federal’s FreshStart Checking account is for people who’ve had issues with banking, particularly bounced checks. There’s a $20 fee to open it and you’ll need to maintain at least a $100 balance. The monthly service fee is $7 but that can be reduced to $4 if your account balance is $750 or more.
Account benefits include free online banking, online bill pay, unlimited check writing, and a Visa debit card. You can also sign up for overdraft protection for your account.
While Bank of the Sierra does automatically run a ChexSystem report if you apply online, you’re likely to get around this requirement if you apply in one of their California branches.
Their Totally Free Checking comes with a number of perks you can benefit from. For example, you’ll receive a free debit card, along with free e-statements, online banking, and bill pay.
If you write checks on a regular basis, there’s no limit on how many you can use each month. You can even personalize your checks with images. With no monthly fees or minimum balance requirement, Bank of the Sierra can potentially be a strong option for unbanked Californians.
Formerly called Bank of the Ozarks, this bank offers a Pathway Checking account that can gain you access to a bank account in California regardless of your ChexSystems history.
The minimum opening balance is $50 and the monthly fee is just $10. Once you start using your account, there’s no minimum balance that needs to be maintained. There are four branch locations in California, which include two in Los Angeles and two in San Francisco.
Headquartered in San Diego, you can access the Fresh Start checking account at California Coast with just a $25 opening deposit as long as there’s no fraud on your ChexSystems report.
You also can’t have any open owed amounts. The monthly service fee is $10 and you’ll have reduced limits as to how much you can withdraw daily from the ATM.
E-Central is in Pasadena and gives you a second chance with the E-Builder Checking account. Available to Southern California residents in Los Angeles County, you’ll need $50 to open an account, as well as $200 in a savings account.
There’s a $10 monthly fee but you’ll have the opportunity to upgrade to another account after 12 months of good history.
Apply for Foothill CU’s Rebound Checking account for a second chance bank experience. The monthly service fee is just $6 if you maintain a balance of $50 or more. Otherwise, the cost is $10 per month.
If your account is in good standing for a year, you can upgrade to Foothill’s Simply Free account. You can apply in person at one of their three branch locations in Arcadia, Covina, or Glendora.
Note that Foothill states that Rebound accounts are subject to close monitoring and can be closed immediately for negative activity. That gives you extra incentive to manage your account responsibly.
Fort Sill National Bank doesn’t use ChexSystems or credit checks for new applicants of the Basic Checking account. Unlike some second chance accounts, this one is available even if you don’t have direct deposit. The opening fee is a low $5 and you’ll need to maintain a $75 balance to avoid paying the monthly $5.50 statement fee.
If your balance is $500 or more, you’ll start earning interest on your account. You’ll also get a Visa check card and free online banking. Another perk for Californians choosing FSNB is the Savings Round Up program. You’ll get each purchase rounded up to the whole dollar, and the extra is deposited directly into a savings account for you.
You can get a Second Chance Checking account with Los Angeles Federal if all of your ChexSystems balances are fully paid. Once you’ve kept your account in good standing for 12 months, you can upgrade to a Regular account.
If you sign up for direct deposit with your Second Chance account, your monthly fee will be $10. Otherwise, you’ll pay $15 each month. Like most other financial institutions, you’ll receive a debit card as well as services like online banking.
Apply in person to qualify for a Second Chance Checking account with Mid Cities, which is located in Compton. If approved, you’ll pay just a $5 monthly fee. Plus, there’s a Mid Cities ATM located on campus at Compton Community College.
Other perks include online banking and free direct deposit. There’s just a $25 opening deposit required, which is minimal for this low-cost second chance account.
If you qualify for membership to Navy Federal, you won’t have to worry about them using ChexSystems. In order to become a member, you need to be either on active duty or retired from the U.S. military.
There are two free checking accounts from Navy FCU, one of which is Active Duty Checking. There’s no monthly fee, but you’ll need to receive direct deposit from the military. If you do, you’ll get access to those deposited funds one business day earlier than usual.
You also get $20 a month in ATM free rebates, which is ideal when you’re stationed in different parts of the world throughout your service time. The other free account from Navy FCU is called EveryDay Checking. It’s a basic account and doesn’t come with any direct deposit requirements.
Even with a ChexSystems history, you could qualify for a Fresh Start Checking account with Premier America. The minimum opening deposit is $25 and the monthly fee is $13. However, that can be lowered to $10 per month if you get at least $200 in direct deposits each month.
Services with this account include online and mobile banking, bill pay, and mobile check deposit. Premier America also has a wide network of ATMs that you can access for free. You also won’t pay a fee to Premier if you use an out-of-network ATM. Plus, you can use person-to-person funds transfer with Popmoney.
The New Leaf Checking account from Priority One helps you reestablish your banking history even with a record in ChexSystems. In order to qualify, you’ll need a credit score of at least 520 and a $25 opening deposit.
You must also have at least $500 a month in direct deposits and must pay a $15 monthly service fee. To open an account, visit one of Priority One’s branches in South Pasadena, Los Angeles, or Van Nuys.
Once you’re approved for your account, there’s no minimum balance required. You’re free to access both online and mobile banking and can use your check card anywhere Visa is accepted. There is, however, a $300 daily limit on how much you can withdraw through both purchases and ATMs.
With several branches in California, Self-Help Federal offers individual members the Access Checking account, even with a history in ChexSystems. There’s no minimum to deposit or maintain in your account and the account is even interest-earning. The monthly service fee is $5, but that can be waived in one of three ways:
Average daily balance of $2,500 in all your Self-Help accounts
Direct deposits of $500 or more each month
Age is 24 and under or 65 and older
Services like online banking, mobile banking, and mobile deposits are free. If you plan to use their bill pay feature, only the first 20 are free; after that, you’ll pay $1 each time.
Visit a Southland branch to apply for the Opportunity Checking account. Like many second chance accounts, you can qualify as long as there are no outstanding amounts due or incidents of fraud on your ChexSystems report.
There’s no minimum deposit or balance, but the monthly service fee is $15. You’ll also be required to set up direct deposit unless your employer doesn’t offer this service.
Once you successfully manage your Opportunity account for 12 months, you can take a Consumer Credit Counseling Service class, paid for by SCU. After completing the class, you can then upgrade to a regular bank account.
Formerly known as Kern Federal, Strata offers a Fresh Checking account option. You could qualify if you have a history of non-sufficient funds or history in ChexSystems.
You will, however, need to have any outstanding balances from other banks paid before applying. After a year of using the Fresh account responsibly, you may be eligible to bump up to SCU’s Free account option.
So what do you get with Fresh Checking? To start, you’ll get a MasterCard debit card to use. There’s just a $25 minimum opening deposit to get started but you will have to pay a steep $20 monthly fee. There’s no minimum balance requirement and you’ll get access to free mobile banking, online banking, and bill pay.
Even though Union Bank does run your application through ChexSystems, they’ll still approve you if you meet certain requirements. For instance, your record must be at least a year old and you need to have made any required payments, plus have no history of fraud.
For ChexSystems records that are over three years old, you should automatically be approved unless you have a history of fraud.
Consider starting off with one Union Bank’s basic checking accounts available in California, called Banking By Design. With a $100 opening deposit, you automatically get a debit card, plus online and mobile banking.
You can then add on other services for a minor monthly fee, such as an unlimited check supply for $1 per month or a savings account for $1.50 a month. You’ll have to pay a $5 monthly fee for the Banking By Design account. But you can get it waived if you sign up for monthly direct deposits or mobile check deposits of at least $250.
In order to qualify for an account with US Bank, try stopping by one of their in-store branches in California. These are different from traditional branches in that they’re located in places like Safeway grocery stores rather than their own free-standing building.
When applying, consider opting for the Safe Debit Account. You won’t get to write checks, but you’ll get a debit card with online and mobile banking features. Although you’ll pay a $4.95 monthly maintenance fee, you’ll receive free access to your credit score through VantageScore 3.0 as well as discounts on money orders.
If you live in Ventura County, consider VCCU for their second chance account. You can sign up for a regular direct deposit and enjoy a reduced monthly service fee of just $5; otherwise, it’s $12.
Increase your chances of approval by visiting a branch in person. There are convenient locations in Ventura, Port Hueneme, Oxnard, River Park, Camarillo, Thousand Oaks, Simi Valley, and Moorpark, California.