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.
10 Best Second Chance Bank Accounts for 2025
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. Current
Features & Benefits
- Build credit just by using your debit card
- No minimum opening deposit
- 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
2. SoFi
Features & Benefits
- Sign-up bonus: Up to $300 with qualifying direct deposits
- No monthly fee
- Earn up to 3.80% APY on savings
- Over 55,000 fee-free ATMs
3. Chime®
Features & Benefits
- Over 22 million downloads
- No credit check or ChexSystems
- No minimum opening deposit
- Over 60,000+ fee-free1 ATMs
4. GO2bank
Features & Benefits
- No ChexSystems or credit check
- 4.50% APY on savings
- Over 19,000 fee-free ATMs
- $5 monthly fee can be waived
5. Stash
Features & Benefits
- No monthly maintenance fees
- Earn stock as you spend with Stock-Back® rewards
- Early payday with direct deposit
- Access to 55,000+ fee-free ATMs
6. Walmart MoneyCard
Features & Benefits
- No monthly fee with direct deposit of $500 or more
- Earn cash back on Walmart purchases
- Overdraft protection up to $200 with opt-in & eligible direct deposit
- Earn 2.00% APY on savings
7. Chase
Features & Benefits
- No credit check or ChexSystems
- $100 bonus after 10 purchases in 60 days
- Over 16,000+ fee-free ATMs
- Over 4,700 branches nationwide
- $4.95 monthly service fee
8. Woodforest National Bank
Features & 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
9. Wells Fargo
Features & Benefits
- Minimum opening deposit of $25
- Online and mobile banking suite included
- Use over 13,000 ATMs free of charge
- Account alerts, 24/7 fraud monitoring, and zero liability protection for your debit card
10. WaFd
Features & Benefits
- $25 minimum opening deposit
- $10 monthly fee (waived with $100 minimum daily balance)
- Debit card with fraud protection tools
- Access to over 37,000 fee-free ATMs via MoneyPass
Second Chance Bank Accounts Near Me
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.
What are ChexSystems, TeleCheck, and Early Warning Services?
ChexSystems, TeleCheck, and Early Warning Services (EWS) are consumer reporting agencies that track your banking history. If you’ve had issues like overdrafts, unpaid fees, or account closures, there’s a good chance you’re listed in one or more of these databases.
ChexSystems is the most widely used of the three, but some banks also check TeleCheck and EWS during the account approval process.
Why You Might Be Listed
Banks use these databases to screen applicants. If your name shows up with negative information, you could be denied a new account. Here are common reasons people get flagged:
- Unpaid bank fees – This is one of the most common reasons for being listed.
- Excessive overdrafts – Repeated overdrafts, especially unpaid ones, can trigger a report.
- Debit card abuse – Misuse of your card or violating account terms may lead to a flag.
- Non-sufficient funds (NSF) losses – If the bank loses money on your account, it may report it.
- Check fraud or bounced checks – Even suspected fraud or too many bounced checks can get you listed.
- Other unpaid charges – This includes things like maintenance fees or stop payment fees.
- Undisclosed reasons – Some listings appear without much detail, making them hard to dispute.
You Might Not Even Know You’re Listed
In many cases, people don’t realize there’s a record until they get denied for a bank account. The issue may have happened years ago—or it may have been something you didn’t even know was a problem at the time.
If you’ve run into repeated rejections, there’s a good chance one of these reporting agencies is the reason. That’s why second chance bank accounts can be a smart way to move forward.
What is a second chance checking account?
A second chance checking account—sometimes called a “fresh start checking” account—is designed for people who’ve been denied a standard account due to past banking issues. These accounts help you get back on track, even if you’re listed in ChexSystems, TeleCheck, or Early Warning Services.
Roughly 80% of banks and credit unions in the U.S. screen applicants through ChexSystems. That includes over 9,000 institutions and more than 100,000 branches. So if you apply at random, the odds of approval are low.
Second chance banks take a different approach. They’re more flexible and often willing to overlook issues like overdrafts or unpaid fees. If you’ve been turned down before, these accounts offer a practical way to restart your banking relationship—without facing rejection after rejection.
See also: Credit Unions That Don’t Use ChexSystems
Why get a second chance checking account?
Second chance checking accounts are designed for people with negative marks on their ChexSystems, TeleCheck, or EWS records. While approval isn’t guaranteed—especially in cases of fraud—most banks offering these accounts are willing to overlook issues like unpaid overdraft fees or non-sufficient funds losses.
Approval rates are high, and applications are often processed quickly. These accounts usually include the same core features as standard checking accounts.
If you need to get back into the banking system, opening a second chance account is one of the fastest and simplest ways to start rebuilding your financial reputation.
What to Look for in a Second Chance Checking Account
Not all second chance accounts are the same, so it’s worth comparing features before you open one. The best accounts make it easy to manage your money without extra fees or restrictions.
Here’s what to look for:
- Low or no monthly fees – Some accounts waive fees if you set up direct deposit or meet other basic conditions.
- No minimum balance – You shouldn’t have to keep hundreds of dollars in your account just to avoid penalties.
- No overdraft fees – The best options block transactions instead of charging you when your balance runs low.
- Free debit card – Visa or Mastercard access should be standard.
- Wide ATM access – Look for a bank with a large fee-free ATM network.
- Online and mobile banking – You’ll want full access to your money from your phone or computer.
If you’re choosing an online-only account, make sure it’s easy to deposit cash—either through partner retailers or a mobile check deposit feature. Keep your day-to-day needs in mind and pick the account that helps you bank with the fewest limitations.
Second Chance Checking vs. Non-ChexSystems Checking
These two types of accounts are often lumped together—but they’re not exactly the same.
- A non-ChexSystems checking account doesn’t check your ChexSystems report at all. If you’re listed, it won’t affect your chances of approval.
- A second chance checking account, on the other hand, usually does check your report—but the bank is willing to overlook past issues. In some cases, you might be asked to take a financial education course as part of opening the account.
While the details differ, the goal is the same: give you a way to open a bank account when other options have turned you down. That’s why many people use the terms interchangeably, even though there are technical differences.
Looking for banks that skip ChexSystems altogether? Check out our full non-ChexSystems banking guide.
Alternatives to Second Chance Checking Accounts
If you don’t qualify for a second chance checking account—or just want more options—there are still other ways to manage your money without a traditional bank.
Here are some alternatives worth considering:
- Prepaid debit cards – These work like standard debit cards but don’t require a bank account. Many now offer features like direct deposit and mobile apps with low fees.
- E-wallets – Platforms like PayPal, Venmo, and Cash App let you send and receive money and even offer debit cards for spending.
- Secured credit cards – These require a refundable deposit and can help you build credit while giving you card access for everyday purchases.
- Foreign bank accounts – If you live near a border or travel frequently, opening an account abroad might be possible, though it depends on the institution.
- Brokerage accounts – Some investment platforms offer checking-like features, including debit cards and bill pay, though higher balances may be required.
Out of these options, prepaid debit cards and brokerage accounts tend to be the most flexible and widely available.
Smart Banking Habits to Build Long-Term Success
Once you’ve opened a second chance account, using it wisely can set you up for better options down the road. Many banks will let you upgrade to a standard account after 6 to 12 months of responsible use.
To make sure you stay on track and avoid getting flagged again by ChexSystems, TeleCheck, or Early Warning Services, follow these tips:
- Check your balance regularly – Avoid overdrafts by staying on top of your account activity.
- Use overdraft protection – If your account offers it, opt in to help cover small shortfalls automatically.
- Enable alerts – Get notified when your balance is low or when large transactions post.
- Review your budget each month – Keep spending in check and make room for savings or debt payments.
- Understand the account terms – Know your fees, limits, and requirements to avoid penalties.
- Maintain the minimum balance – If your account has a required balance, don’t let it drop.
- Handle fees quickly – Pay any fees promptly, or reach out to see if they can be reversed.
- Set up direct deposit – It helps keep your account active and may qualify you for fee waivers.
Building strong banking habits now can help you stay in good standing—and unlock better financial tools down the line.
Final Thoughts
Getting denied for a checking account because of ChexSystems, TeleCheck, or EWS can be frustrating—but it’s more common than you think. In many cases, the issue comes down to small mistakes from years ago.
Some banks are willing to look past those missteps. A second chance checking account gives you the opportunity to get back into the system and move forward.
There’s no reason to keep going without a bank account. Open a second chance account today and start rebuilding your financial track record with a bank that’s willing to meet you where you are.
Frequently Asked Questions
Can I open a second chance checking account online?
Yes, many second chance checking accounts can be opened entirely online. Banks like Chime, GO2bank, and Current allow you to apply, verify your identity, and fund your account without visiting a branch. Just make sure the bank accepts applicants in your state before applying.
Will a second chance checking account help me rebuild my banking history?
Yes, using a second chance checking account responsibly can help you rebuild your banking history. Keeping a positive balance, avoiding overdrafts, and managing the account well may improve your standing with banks over time and make it easier to qualify for a regular account later.
Do second chance banks report to ChexSystems again if I overdraw or close my account?
Yes, they can. Even though second chance banks are more flexible upfront, they may still report you to ChexSystems or other agencies if you overdraft and don’t repay, or if your account is closed in bad standing. Treat your second chance account like any other—keeping it in good shape is key to moving forward.
How long do I need to keep a second chance checking account before upgrading to a regular account?
It depends on the bank, but many will consider an upgrade after six to twelve months of responsible use. Some may offer automatic upgrades, while others require you to apply.
Can I get overdraft protection with a second chance checking account?
Some second chance accounts include overdraft protection, but limits and eligibility rules may apply. You may need to opt in, and the coverage amount can vary by bank. Always check the account terms.
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.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
