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9 Best Second Chance Checking Accounts in the U.S.
Banks and credit unions can check your banking history against the records maintained by ChexSystems, TeleCheck, and Early Warning Services. If you are listed in any of these databases, you may be turned down for a checking account.
These records are maintained for a period of five years. So, waiting for your entries to be cleared is not a practical option. You need a checking account, and you need it now.
Fortunately, there are banks and credit unions that offer second chance checking to customers with a poor banking history.
9 Best Second Chance Bank Accounts for 2023
Below is a list of our top recommended second chance checking accounts for people looking for a fresh start. These second chance checking accounts offer guaranteed approval and come with the lowest fees, and great features and benefits.
U.S. Bank is now offering the Bank Smartly® Checking account, which is currently available in 26 states across the United States.
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
You can earn up to $400 when you open a new Bank Smartly® Checking account and a Standard Savings account, and complete qualifying activities. This offer is valid through June 20, 2023.
The Bank Smartly® Checking account comes with a free debit card and the option to lock or unlock the card if it’s ever lost or stolen.
Plus, you’ll never have to worry about ATM transaction fees at U.S. Bank ATMs or surcharge fees at over 40,000 MoneyPass Network ATMs.
U.S. Bank uses ChexSystems, but it has a history of being more lenient with records than most banks.
As long as you don’t have a history of fraud, or you don’t owe any money to U.S. Bank, you may be able to open a checking account with them.
The minimum deposit for this account is just $25, and the monthly service fee is $6.95. However, you can avoid the monthly fee by maintaining a minimum balance of $1,500 or by having a minimum monthly direct deposit of $1,000.
With Chime®, bad banking history is not an issue. They offer an award-winning financial app, a debit card, and a credit builder Visa® credit card, all with no credit check.
The Chime Checking Account is 100% free and has no monthly fees:
no monthly maintenance fees
no foreign transaction fees
no balance requirements
You can also start building your credit with the Chime Credit Builder Visa® Credit Card. It’s a secured credit card with no annual fees, no credit checks, and no interest charges.
Chime has over 60,0001 fee-free MoneyPass® and Visa® Plus Alliance ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit2. You can also deposit cash for free at over 8,500 Walgreens.
GO2bank, a neobank provided by Green Dot, an established financial technology company. Customers can open a checking account with subaccounts called vaults, all without requiring a minimum balance.
Furthermore, GO2bank offers a competitive 4.50% APY on savings accounts for up to $5,000 in savings. Customers can easily access their funds at 90,000 retail locations for cash deposits and 19,000 fee-free ATMs.
In addition, customers can receive their pay up to 2 days early and government benefits up to 4 days early with direct deposit.
Customers can opt for overdraft protection of up to $200 with eligible direct deposits, providing them with peace of mind.
GO2bank also provides the GO2bank Secured Visa Credit Card, which can assist customers in building their credit over time through responsible use.
The monthly fee of $5 is waived when customers receive payroll or government benefits via direct deposit in the previous monthly statement period.
Chase offers a checking account called Chase Secure Banking. The checking account comes with a Chase debit card that gets you access to over 16,000 fee-free ATMs.
Some features of this checking account include free online bill pay, free money orders and cashier’s checks, no overdraft fees, and no minimum opening deposit. However, there is also a monthly service fee of $4.95.
When you open a Chase Secure Banking account and make 10 qualifying purchases within 60 days, you’ll get a $100 cash bonus.
Account approval is immediate, and the debit card typically arrives within days.
Current is a financial technology company, not a bank. The company does not use ChexSystems or pull your credit report, and they have a lot to offer.
A Current mobile bank account includes fee-free overdraft protection of up to $200. Account holders also get access to over 40,000 fee-free Allpoint ATMs with your Current debit card, and there are no hidden fees.
You can also get paid up to two days early with direct deposit with a Current Premium account. Plus, Current offers up to 4.00% APY with Current Savings Pods.
Up to 3.75% APY on savings, and 2.50% APY on checking balances
55,000 fee-free ATMs
The SoFi Checking and Savings account offers numerous advantages, such as no overdraft fees, no balance requirements, and no monthly fees.
Additionally, account holders have access to 55,000 ATMs with no fees through the Allpoint® Network. Those who set up direct deposits can earn an annual percentage yield (APY) of 3.75% on their savings and 2.50% on their checking accounts.
Furthermore, direct deposit members can receive their paychecks up to 2 days early, and can earn up to 15% cash back at local establishments when using the SoFi debit card.
Up to 5% cash back on qualified debit card purchases
55,000 fee-free ATMs
Get paid up to 2 days early
Aspiration’s Spend & Save Account hybrid checking and savings account that is entirely online. There’s a $10 minimum opening deposit to get started.
With an Aspiration debit card, you get unlimited fee-free withdrawals at over 55,000 ATMs and one out-of-network ATM reimbursement per month. You can also get paid up to two days early with direct deposit.
You can earn up to 5.00% APY when you spend $1,000/month and deposits are FDIC insured.
Monthly service fee as low as $9.95 with direct deposit set up
No ATM fees at Woodforest ATMs
Flexible overdraft options
Woodforest National Bank offers a second chance bank account to members at over 700 branches in 17 states.
The minimum opening deposit is just $25 and you’ll also have to pay a one-time setup fee of $9.
It also comes with a monthly fee of $11.95. You can get it reduced to $9.95 by enrolling in direct deposit. Another small fee is a paper statement fee of $3 per month. It can be waived completely by signing up for e-statements.
Local banks and credit unions offering second chance checking accounts can be found in almost every state. However, if you live in a location without nearby second chance account options, don’t worry! You can still sign up for one through numerous nationwide and online banks listed above. Here is a list of second chance bank accounts by state.
Alabama
Alabama Credit Union: On-Track Checking
Avadian Credit Union: e-Checking
Azalea City Credit Union: Opportunity Draft
Family Security Credit Union: Give Me a Break Checking
Guardian Credit Union: Fresh Start Checking
United Bank: Gateway Checking
West Alabama Bank: Fresh Start Checking
Alaska
True North Federal Credit Union: True Options Checking
Arizona
Alhambra Credit Union: Basic Checking
Banner Federal Credit Union: Opportunity Checking
Copper State Credit Union: Try Again Checking
MariSol Federal Credit Union: Start Again Checking
Pima Federal Credit Union: Fresh Start Checking
Tucson Federal Credit Union: Second Chance Checking
Tucson Old Pueblo Credit Union: Mission Checking
Arkansas
Diamond Bank: Encore Checking
Focus Bank: Fresh Start Checking
Red River Credit Union: Fresh Start Checking
River Valley Community Federal Credit Union: Fresh Start Checking
California
Alta Vista Credit Union: Opportunity Checking
Befit Financial Federal Credit Union: Fresh Start Checking
E-Central Credit Union: E-Builder Checking
Excite Credit Union: Fresh Start Checking
Foothill Credit Union: Rebound Checking
Los Angeles Federal Credit Union: Second Chance Checking
North County Credit Union: Fresh Start Checking
Premier America Credit Union: Fresh Start Checking
Priority One Credit Union: New Leaf Checking
Strata Credit Union: Fresh Start Checking
UNIFY Financial Credit Union: Right Start Checking
University Credit Union: Fresh Start Checking
Ventura County Credit Union: Second Chance Checking
Colorado
Liberty Savings Bank: Clean Slate Checking
NuVista Federal Credit Union: The Last Chance Checking
Connecticut
Eastern CT Savings Bank: Restart Checking
Finex Credit Union: Re-Start Checking
Hartford Federal Credit Union: 2nd Chance Checking
Delaware
WSFS Bank: Fresh Start Checking
District of Columbia
CommonWealth One Federal Credit Union: Second Chance Checking
Florida
Axiom Bank: Opportunity Checking
Central Credit Union of Florida: Fresh Start Checking
City County Employees Credit Union: Fresh Start Checking
Community First Credit Union: Fresh Start Checking
Compass Financial Federal Credit Union: Restart Checking
First American Bank: Fresh Start Checking
First Florida Credit Union: Smart Track Checking
Gold Coast Federal Credit Union: Fresh Start Checking
Gulf Winds Federal Credit Union: MyOpportunity Checking
JetStream Federal Credit Union: Second Chance Checking
McCoy Federal Credit Union: Fresh Start Checking
Members First Credit Union of Florida: Second Chance Checking
Okaloosa County Teachers Federal Credit Union: Fresh Start Checking
One South Bank: Opportunity Checking
Priority Credit Union: Restart Checking
San Antonio Citizens Federal Credit Union: Checking Rebuilder
SouthState Bank: Fresh Start Checking
South Florida Federal Credit Union: Aspire Checking
Georgia
Community Bank & Trust: Second Slice Checking
Georgia United Credit Union: Restart Checking
Georgia’s Own Credit Union: Resolution Checking
Health Center Credit Union: Fresh Start Checking
Peach State Federal Credit Union: Fresh Start Checking
Hawaii
Hawaii USA Federal Credit Union: MyChance Checking
Idaho
Latah Credit Union: Second Chance Checking
Illinois
Catholic & Community Credit Union: Rebound Checking
First American Bank: Fresh Start Checking
First Eagle Bank: Eagle Fresh Start Checking
Marquette Bank: ReStart Checking
Indiana
Centra Credit Union: Opportunity Checking
Diamond Valley Federal Credit Union: Fresh Start Checking
Heritage Federal Credit Union: 2nd Chance Checking
Horizon Bank: Fresh Start Checking
Interra Credit Union: Opportunity Checking
Liberty Federal Credit Union: Opportunity Checking
One Vision Federal Credit Union: Rising Star Checking
Regional Federal Credit Union: First Step Checking
Iowa
Collins Community Credit Union: Take2 Checking
Federation Bank: Fresh Start Checking
Greater Iowa Credit Union: Fresh Start Checking
North Iowa Community Credit Union: Fresh Start Debit
Kansas
Central National Bank: New Opportunity Checking
United Consumers Credit Union: Second Chance Checking
Kentucky
C-Plant Federal Credit Union: Second Chance Checking
The Cecilian Bank: Choice Opportunity Checking
First United Bank and Trust Company: Fresh Start Checking
FNB Bank: Start Again Checking
Hearthside Bank: Square One Checking
Liberty Federal Credit Union: Opportunity Checking
American United Federal Credit Union: FreshStart Checking
Cyprus Credit Union: Fresh Start Checking
Vermont
N/A
Virginia
Central Virginia Federal Credit Union: Fresh Start Checking
CommonWealth One Federal Credit Union: Second Chance Checking
Healthcare Systems Federal Credit Union: Renew Checking
Member One Federal Credit Union: Smart Choice Checking
Washington
MountainCrest Credit Union: Fresh Start Checking
West Virginia
Clear Mountain Bank: StartFresh Checking
West Virginia Federal Credit Union: Fresh Start Checking
Wisconsin
Brewery Credit Union: Fresh Start Checking
Educators Credit Union: Fresh Start Checking
First National Bank and Trust Company: Renew Checking
Marine Credit Union: Credit Builder Checking
Crossbridge Community Bank: Fresh Start Checking
WESTconsin Credit Union: Foundations Checking
Wyoming
WyHy Federal Credit Union: Second Chance Checking
WYO Central Federal Credit Union: 2nd Chance Checking
What are ChexSystems, TeleCheck, and Early Warning Services?
ChexSystems, TeleCheck, and EWS are consumer reporting agencies that monitor and report the banking history of hundreds of millions of consumers. Those who are flagged by these agencies have records in their databases. ChexSystems is the largest of the lot.
Banks run your name through one or more of these databases when you apply for a bank account. If they pull up a record, you probably will not be able to open an account.
A wide range of offenses can get you listed with a consumer reporting agency. Here are some examples:
Unpaid fees (likely the most common reason to be listed)
Excessive overdrafts
Abuse of your debit card
Non-sufficient funds losses
Various forms of check-related fraud
Failure to pay other fees or service charges
Sometimes the offense is simply listed as “Undisclosed”
Thinking back, you may be able to figure out exactly what got you listed. But often, the incident may have been so small that you have forgotten about it—or never even been aware of it in the first place.
What is a second chance checking account?
Second chance checking accounts (sometimes referred to as “fresh start checking” accounts) are offered by financial institutions willing to give customers a second chance to prove that they’re a reliable banking customer.
If you are listed in ChexSystems, you will be hard-pressed to find a bank or credit union willing to consider you. There are options available. However, only a minority of financial institutions are willing to ignore your negative checking history.
Over 9,000 banks and credit unions in the US screen applicants through ChexSystems. In all, that adds up to over 100,000 branches. It also accounts for 80% of banking institutions in the country.
If you pick a financial institution at random and try to open a new bank account there, you only have a 2 in 10 chance of success.
Additionally, being listed in TeleCheck or EWS can further decrease your chances, as some banks may run these checks even if they do not pull your ChexSystems report. To avoid the disappointment and frustration of repeated rejections, it is recommended to open a second chance bank account.
Why get a second chance checking account?
Banks that offer second chance checking accounts do so in full knowledge of your ChexSystems, TeleCheck, or EWS record.
Based on the information they see on your file, there is a possibility that you will still be denied. If, for example, you committed repeated counts of check fraud, most banks will not want to risk dealing with you.
In most cases, however, approval for a second chance checking account is almost guaranteed. These banks know that sometimes good customers can go through lapses in judgment. They are willing to take a risk on you despite your past banking issues or bad credit.
Banks and credit unions that use ChexSystems may reject you for an unpaid overdraft fee or non-sufficient funds loss. However, second chance banks are willing to overlook these kinds of offenses and offer you a bank account.
In fact, approval rates for second chance checking accounts are very high, and most banks process customer applications very quickly. Features offered by these banks and credit unions are comparable to those of a regular bank account.
If you apply for a second chance checking account today, you could be banking again in no time. This is the simplest and fastest way you can start improving your banking history.
What should I look for in a second chance bank account?
The best second chance bank accounts come with features such as:
Low or no monthly fees
No minimum balance requirements
No overdraft fees
Free Visa or Mastercard debit card
A large fee-free ATM network
Online banking
Mobile banking
The goal is to find the perfect fit for your needs while paying the minimal amount of fees. If you sign up for an online checking account, you’ll want to find one that offers many locations where you can deposit cash.
Second Chance Checking vs. Non-ChexSystems Checking
Aren’t they basically the same?
Not quite. But, it really depends on how specific you want to get. They serve the same purpose, but technically a “second chance” checking account and a “non-ChexSystems” checking account are two different things.
When you apply for a non-ChexSystems checking account, your ChexSystems report is not screened.
When you apply for a second chance checking account, your report is usually still checked.
The other big difference is that second chance banking may come with some additional limitations or strings attached. The institution may require that you enroll in a course that teaches personal finance to open a checking account.
That being said, a lot of the time, the two terms are used interchangeably.
All in all, both of these types of bank accounts have a lot more in common than otherwise. This is the reason they tend to be grouped together, despite their differences.
Searching for a comprehensive list of the top banks without ChexSystems? Take a look at our in-depth non-ChexSystems banking guide.
If, for whatever reason, you still do not qualify for a second chance checking account, what can you do?
As mentioned previously, we do have a detailed page on non-ChexSystems banks. Some of the banks we recommend in that guide that do not use ChexSystems may fit your needs.
Second chance and non-ChexSystems bank accounts really are the most convenient options. They are easy to get started with and provide you with the best features.
However, if you are unable to get approved or simply seeking alternatives, here are some additional possibilities:
Prepaid debit cards – A prepaid debit card is much like a credit card. Fees on prepaid cards have come down, and some of them include a surprisingly large range of benefits.
E-wallets – PayPal, Venmo, Cash App, and similar services sometimes offer debit cards to select customers.
Secured credit cards – This type of credit card requires you to have a refundable security deposit. Your credit limit will be equal to your security deposit.
Foreign bank account – If you live close to the border or travel often, see if a foreign bank will allow you to open a bank account.
Brokerage accounts– If you can swing a large balance requirement, this is another option that may work out.
Of all of these alternative options, the two best are prepaid debit cards and brokerage accounts.
After 6 months to a year with a second chance checking account, there is a good chance that you will be able to upgrade to a regular checking account at the same institution.
Hopefully, from that point onward, you will maintain a clean banking record. But how can you make sure you do not end up in ChexSystems, EWS, or TeleCheck again?
Anyone (including your bank or credit union) can make a mistake, so there is no surefire way to guarantee that you will not run into this issue in the future. But the following tips can minimize your chances of another mishap.
Check your bank account balance regularly. Make it a habit.
Set up overdraft protection.
Set up alerts for when your balance falls under a certain threshold.
Set up alerts for large payments and transfers.
Review your budget at least once a month. Figure out where all your money is going. Cut back on any unnecessary expenses. Consolidate debts and take other steps as needed to simplify your finances and reduce what you owe.
Understand the terms governing account balance, fees, and so on to the letter.
Make sure that you never allow your checking account to dip below the minimum threshold.
If you incur a fee, either pay it that day or ask customer support to retract it. This is not always easy. It depends on the bank or credit union, the branch, how long you have been a customer, who is working that day, and how busy they are.
If you can set up direct deposit, do so.
If you follow smart banking practices like those described above, you can protect your banking record. Ultimately, this will help you keep fees and daily balance requirements to a minimum and increase your access to banking services.
Which is better, a second chance checking account or non-ChexSystems checking account?
It’s difficult to declare one as superior to the other since both types of checking accounts offer nearly the same features and benefits. Nevertheless, non-ChexSystems accounts are simply regular checking accounts that don’t require a credit check, so they may come with better features than second chance accounts.
Additionally, certain second chance banks may require you to complete a financial education course to assist you in managing your finances more effectively, but many don’t. While this requirement may seem like a disadvantage, it actually isn’t; you might discover that the lessons are quite valuable.
Is it easier to qualify for a non-ChexSystems checking account or a second chance checking account?
It may seem like you have a better chance of being approved if a bank doesn’t check your ChexSystems report, but that’s not always the case. Banks that don’t check ChexSystems may still find your name in EWS or TeleCheck, which could lead to your application being denied.
With second chance checking accounts, they may have already seen your record. However, they have assessed the risk of numerous customers listed in ChexSystems and have decided that most applicants are still worth taking on.
So in some cases, you might have an easier time being approved by a bank that doesn’t look at ChexSystems, but in others, you might have an easier time being approved for a second chance account.
Is a second chance checking account as good as a traditional checking account?
Some of the second chance bank accounts we’ve listed above are just as good, if not better than a regular checking account you have had in the past; particularly the Chime checking option.
Do credit unions offer second chance checking accounts?
Yes, there are quite a few second chance credit unions and some of them are quite good. If you prefer to get a checking account with a credit union, check with your local credit union to see what they have to offer.
How can I get a second chance checking account?
Getting started is easy! Just scroll up to our list of recommended second chance banks above or jump down below to select your location from our list. Select a checking account that offers the features you are looking for and click through to apply online in minutes.
When you are declined a standard checking account because of ChexSystems, TeleCheck, or EWS, you may feel like the banking system has abandoned you.
But your situation is far from unique. Most customers with a negative banking history have committed minor infractions, often involving only a few dollars.
While it may not be as convenient, some banks recognize how absurd it is to decline reliable customers simply because of an insignificant incident in their past.
Why go another day without banking when you don’t have to? It’s time to open a second chance checking account and start building your banking history with a financial institution that recognizes your value as a customer!
Non-ChexSystems Banks by State
Looking for more information and additional options available in your area? Select your state from the list below to explore your options.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime 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.
