Banks and credit unions can check your banking history against the records maintained by ChexSystems, TeleCheck, and EWS. 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 an option. You need a checking account, and you need it now.

Thankfully, there are banks and credit unions out there that offer second chance checking to customers listed in ChexSystems, TeleCheck, and Early Warning Services.

Best Second Chance Bank Accounts for 2022

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.

1. Chime

Our Top Pick
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on Chimes' secure website

Features and Benefits

  • No credit check or ChexSystems
  • No monthly service fees or minimum opening deposit
  • Over 60,000+ fee-free ATMs
  • Get paid up to 2 days faster

Chime offers an award-winning mobile bank account with no overdraft fees, monthly maintenance fees, minimum balance requirements, or foreign transaction fees. Basically zero fees period.

Get can your paycheck up to 2 days earlier with direct deposit than you would with a traditional financial institution.

On top of that, you get a Spending Account and a Savings Account along with a Visa® Debit card and access to over 60,000 fee-free ATMs.

Is Chime Right For You?

Chime is best for people who don’t need access to physical bank locations and who want to take advantage of this online-only bank’s low fees.

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2. Aspiration

Our Second Pick
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on Aspiration's secure website

Features and Benefits

  • No credit check or ChexSystems
  • $10 minimum opening deposit
  • 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.

Is Aspiration Right For You?

Aspiration is great for people are environmentally conscious and want to give back to the community. It’s also a solid account to have for those who use their debit card a lot and can take advantage of the cashback rewards.

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3. Current

Our Third Pick
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on Current's secure website

Features and Benefits

  • No credit check or ChexSystems
  • No minimum balance or hidden fees
  • Fee-free overdraft up to $200 with Overdrive
  • 40,000 fee-free Allpoint ATMs in the U.S.
  • Get paid up to 2 days faster

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 is no minimum balance or 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.

Is Current Right For You?

Current is another excellent online bank account for anyone who wants to get paid early and avoid monthly fees.

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4. Axos Bank

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on Axos Bank's secure website

Features and Benefits

  • No credit check or ChexSystems
  • No overdraft or NSF fees
  • Unlimited ATM fee reimbursements
  • $50 minimum deposit required

The Rewards Checking account from Axos Bank has no monthly maintenance fees, unlimited domestic ATM fee reimbursements, and it comes with cash back rewards.

You get unlimited free mobile deposits and your funds are FDIC insured up to $250,000. Plus, there are no overdraft fees or non-sufficient fund fees.

There are no minimum balance requirements, and you’ll only need a $50 deposit to open the account.

Is Axos Bank For You?

Axos Bank is a great online checking account for anyone who wants to avoid fees and get cash back.

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5. Albert

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on Albert's secure website

Features and Benefits

  • No credit check or ChexSystems
  • No minimum deposit requirement
  • $150 bonus with direct deposit and use of Albert debit card
  • 55,000 fee-free ATMs

Albert has just about everything you’d want in a checking account. There’s no minimum deposit to open an account. All funds are insured up to $250,000 through federally backed FDIC protection.

You get a free Mastercard debit card that comes with $200 overdraft protection and cashback rewards. You also get access to over 55,000 fee-free ATMs, and you can get your paycheck up to 2 days early.

Is Albert right for you?

Albert has an ‘Ask a Genius’ feature on their mobile app, which is available 24/7. You can ask them any personal finance questions. This is just another great addition to this feature-packed checking account.

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6. Woodforest National Bank

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on Woodforest's secure website

Features and Benefits

  • $25 minimum opening deposit plus $9 setup fee
  • Monthly service fee as low as $9.95 with direct deposit set up
  • No ATM fees at Woodforest ATMs
  • Flexible overdraft options

Woodforest offers a second chance bank account to members at over 700 branches in 17 states. Those states include Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.

Is Woodforest right for you?

Since there are fees for this second chance checking account, it is not our top recommended choice. However, it may be a suitable option if you are located in a state the bank operates in and cannot qualify for a more affordable option.

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7. PNC

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on PNC's secure website

Features and Benefits

  • No minimum balance required.
  • Free transactions at approximately 9,000 ATMs.
  • Improve your financial skills through PNC's courses (required).
  • Upgrade to a standard bank account after 6-18 months.

PNC is not available in every state, but it has a significant presence throughout the US, particularly in the Midwest and on the East Coast. PNC offers a second chance checking account called Foundation Checking.

Pay your bills, set savings goals, and track your spending with their free online and mobile banking tools.

Availability: Alabama, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Indiana, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, and Wisconsin.

Is PNC Foundation Checking Right For You?

PNC may be a great second chance bank account if you are looking for additional education and support as you start back up with banking. You also should consider them if you have an account that may regularly dip below the $25 balance threshold requirement that is typical at other banks.

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8. Wells Fargo

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on Wells Fargo's secure website

Features and Benefits

  • Minimum opening deposit of $25.
  • Online bill pay and mobile banking suite included.
  • Use over 13,000 ATMs free of charge.
  • Additional features include account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card.

If Wells Fargo declines you for a standard checking account, you may still qualify for their “Clear Access Banking” account.

This second chance checking account has a monthly fee of $5. The only way to avoid it is if the primary account owner is 13 – 24 years old.

Is Clear Access Banking Right For You?

Clear Access Banking may be a good fit for you if you are keen on having a checking account at a big bank, but your banking record disqualifies you from getting a regular bank account.

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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 in ChexSystems, TeleCheck, or EWS. Here are some examples:

  • Unpaid overdraft fees (likely the most common reason to be listed)
  • 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 account there, you only have a 2 in 10 chance of success.

Actually, your chances are probably even slimmer than that. Why? Because if you happen to be listed in TeleCheck and/or EWS as well, that too can raise a red flag on your name. A bank that does not pull your ChexSystems report may still run a TeleCheck or EWS check and end up turning you down anyway.

Obviously, you can waste quite a bit of time doing this and get steadily more discouraged by rejection after rejection. That’s why it’s best to just open a second chance bank account.

Why get a second chance checking account?

Banks that offer second chance banking 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 pretty much 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 overdraft fees that didn’t get paid or non-sufficient funds loss. However, second chance banks are willing to overlook these kinds of offenses and offer you an 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 are comparable to those of a regular account. If you apply for an account today, you could be banking again in no time. This is the simplest and fastest way you can start raising your credit score right now.

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 key is to get as many features as you can while paying the least 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 usually is 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 in order to open a new 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 why 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.

Best Alternatives to Second Chance Bank Accounts

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.

If you cannot get approved for whatever reason, however, or you simply are looking for alternatives, here are some additional possibilities:

  • E-wallets – PayPal 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 an account.
  • 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.
  • Money market accounts (brokerages) – 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 money market accounts.

Best Banking Practices Going Forward

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 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 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.
  • It should go without say, but you need to follow the rules. Do not try to bend or break them in any way. Even if you are desperate, it is never worth it.
  • If an issue does come up, contact customer service immediately and work with an agent for a swift resolution.

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.

Second Chance Banking FAQ

Which is better, a ‘second chance’ or ‘non-ChexSystems’ bank?

Neither option is really “better.” The features and benefits of the two types of checking accounts are almost identical. Some second chance banks insist that you take an educational course to help you better manage your finances, but many do not. Plus, while you may look at this as a detractor, it really is not; you may find the lessons useful.

Is it easier to qualify for a non-ChexSystems checking account or a second chance checking account?

You might think it’s easier to qualify when ChexSystems isn’t run at all, but this is not always the case. Sometimes a bank that does not look up your ChexSystems record may still find you in EWS or TeleCheck.

With a second chance account, they have seen your record, but 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 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 credit unions that offer second chance accounts 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 does one apply for 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 an account that offers the features you are looking for and click through to apply online in minutes.

Conclusion

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 less-than-perfect 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 is time to start building a solid record again with an institution that recognizes your value as a customer!

Second Chance Banks & Credit Unions by State

Looking for more information and additional options available in your area? Select your state from the list below to find out all your options for banking.