5 Best Second Chance Checking Accounts for November 2024
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Chime® Checking Account: Best for overdraft protection
Chime’s online checking account doesn’t have monthly maintenance fees or minimum balance or deposit requirements and may be a good option for those looking for a student checking account. You also won’t pay overdraft fees, foreign transaction fees or transfer fees.
You can get access to direct deposit funds quickly with this online checking account, which may make it easier to manage your budget. If you need cash, you can grab it at one of more than 60,000 ATMs without paying bank fees.
You also won’t pay overdraft fees, as Chime will simply decline debit card purchases if you can’t cover them. However, if you qualify for SpotMe, Chime will cover up to $200 in overdrafts to minimize inconvenience at the register.
Chime® Checking Account: An overview
Monthly Fee
Opening Deposit
Min Account Balance
Overdraft Fee
Uses ChexSystems
None
No minimum
None
No
No
Chime® Checking Account: Pros and cons
Pros
Cons
✅ Excellent overdraft protection ✅ No monthly fees ✅ No credit or ChexSystems checks ✅ No minimum deposit or balance requirement
❌ No physical branch locations ❌ Account doesn’t earn interest ❌ You may pay fees for certain types of withdrawals or deposits
Current offers products that work like checking accounts in that you can receive direct deposits and use a debit card to make payments. You can also build your credit by using the Build card and get points for cash back.
You won’t pay monthly fees with a Current account, and there’s no credit check. If you have $500 or more in monthly direct deposits, you qualify for fee-free overdraft protection. The account does have the potential for other costs, though, such as cash deposit and ATM fees.
Current isn’t a traditional checking account. It offers some hybrid benefits of checking and savings accounts, but you won’t have checks or check-writing abilities.
Current Account: An overview
Monthly Fee
Opening Deposit
Min Account Balance
Overdraft Fee
Uses ChexSystems
None
No minimum
None
No
No
Current Account: Pros and cons
Pros
Cons
✅ No monthly fees ✅ No credit or ChexSystems check required to open account ✅ Early access to direct deposits ✅ Potential to earn rewards ✅ Potential for credit building
❌ No physical branch locations ❌ High APY on savings requires meeting direct deposit threshold ❌ You pay a fee for making cash deposits ❌ No check-writing capabilities
Chase Secure Banking℠: Best for flexible money management
This Chase’s Secure Banking checking account provides comprehensive money management features. With this Chase checking account, you can get early access to direct deposits, transfer money via Zelle, make withdrawals via Chase ATMs and pay bills with Chase Online Bill Pay. You do pay a monthly fee of $4.95.
You won’t pay overdraft fees because debit card transactions will be declined if you don’t have the funds available. There’s no minimum deposit requirement, and Chase’s Zero Liability Protection ensures you’re not responsible for unauthorized charges if you report them in a timely manner.
Chase Secure Banking: An overview
Monthly Fee
Opening Deposit
Min Account Balance
Overdraft Fee
Uses ChexSystems
$4.95
No minimum
None
No
No
Chase Secure Banking: Pros and cons
Pros
Cons
✅ No credit or ChexSystems check ✅ No minimum deposit requirement ✅ Zero Liability Protection for unauthorized debit card charges ✅ Plenty of account management tools via Chase’s mobile app or online portal
❌ There is a monthly fee ❌ You don’t have paper checks ❌ Out-of-network ATM fees can add up and aren’t reimbursed
LendingClub Rewards Checking: Best for cash back
This rewards checking account offers the opportunity to earn 1% cash back on regular spending without paying a monthly maintenance fee. You also don’t pay overdraft fees and get unlimited ATM rebates, further reducing your costs.
While the APY on this account is low compared to high-yield alternatives, it’s pretty competitive for a second chance checking option. You get 0.10% APY if your balance is $2,500 or higher and 0.15% APY with a balance of $100,000 or more. You can manage your account with LendingClub Mobile.
LendingClub Rewards Checking: An overview
Monthly Fee
Opening Deposit
Min Account Balance
Overdraft Fee
Uses ChexSystems
None
No minimum
None
No
No
LendingClub Rewards Checking: Pros and cons
Pros
Cons
✅ Opportunity to earn cash back ✅ Robust mobile checking account ✅ No monthly maintenance or overdraft fees ✅ Early access to direct deposits
❌ No physical branch locations ❌ You can find options with much higher APY ❌ No protection against some types of overdrafts
MPH Bank Fresh Spend: Best for upgrading to a regular checking account
The MPH Fresh Spend Checking Account is great for upgrading to a regular checking account. It gives a second chance to those with up to three ChexSystems charge-offs, as long as the total balance is $1,000 or less.
It comes with a $9 monthly maintenance fee and a $10 overdraft fee per occurrence. Despite these downsides, you can seamlessly transition to a regular checking account after maintaining the account for 12 months without overdrafts. This makes it an ideal option for improving your financial stability.
MPH Bank Fresh Spend: An overview
Monthly Fee
Opening Deposit
Min Account Balance
Overdraft Fee
Uses ChexSystems
$9
No minimum
None
$10 per occurrence
No
MPH Bank Fresh Spend: Pros and cons
Pros
Cons
✅ Get paid up to two days early ✅ Use the round-up widget to save money automatically when you make purchases ✅ No minimum deposit requirements ✅ Access to 55,000 fee-free ATMs
❌ No physical branch locations ❌ Earns no interest ❌ No rewards
Second chance checking accounts are designed for individuals with bad credit.
Many banks check your credit, limiting your access to products if you have poor credit or a negative history of account management. Second chance products don’t put as much emphasis on credit history and offer a chance to build positive history in the future.
What is ChexSystems?
ChexSystems is a consumer credit reporting agency that specializes in data related to checking and savings accounts.
It gathers information reported by banks, such as reasons for account closure, whether consumers owe money on closed accounts and issues such as overdrafts and bounced checks. This information is used to generate a score that informs banks about your performance as an account holder.
Banks sometimes include a ChexSystems check in their evaluation of potential account holders, as the reports can indicate whether someone might be a risk. Information can stay on your ChexSystems report for up to five years, potentially inhibiting your ability to get a checking or savings account. Second chance checking accounts usually don’t require a ChexSystems report for approval.
Should I get a second chance checking account?
Second chance bank accounts may be a good option if you’ve been denied a traditional checking account.
Reasons to apply for a second chance checking account might include:
You had an overdraft on your account that ended up in collections before you paid it off.
You have a history of bounced checks on a previous account that took a while to clear up.
You have a credit score in the low 500s.
Pros and cons of second chance checking accounts
Pros
No credit or ChexSystems checks, reducing account entry requirements
Accounts typically have low or no minimum deposit and balance requirements
Some accounts offer credit building features
You can rebuild your ChexSystems report and get a better account in the future if desired
Cons
Accounts tend to be light on rewards, such as cash back or higher APY
Many of these accounts are only offered by online banks, so you won’t have access to a physical branch
You may have limited access to common features, such as check writing
How to choose a second chance checking account
Do the same research you would do when opening any bank account to ensure you choose the best checking account to meet your needs.
Some important considerations include:
Minimums: Look for second chance checking with no opening deposit or balance requirements so you can open your account with whatever funds you have on hand.
Fees: Consider accounts with very low or no monthly maintenance fees, and check other fee structures to ensure you don’t end up paying a lot for your account access.
Check-writing privileges: Not all second chance bank accounts come with checks and check-writing abilities. If this is something you want, ask about it before you apply.
Debit card access: Ensure you get a debit card to use when making purchases — not an ATM card you can only use at banking machines.
ATM network: Look into the bank’s ATM network and whether there are any in-network ATM fees. Find out if out-of-network fees might be reimbursed. Check ATM locations to ensure you have some nearby for convenience.
Mobile banking options: Evaluate the mobile banking experience, such as whether there’s a robust app that lets you make deposits, view and manage your account, initiate transfers and pay bills.
Budgeting tools: Budgeting tools, such as notifications and reminders and options to categorize spending or savings, can help you better manage your account for a positive second-chance outcome.
Accessibility: Consider accounts that don’t require credit checks and ChexSystems reports to open.
How to open a second chance checking account
Follow these steps to open a second chance checking account:
1
Conduct research:
The nearest local bank may not offer these account types, so you’ll need to do some research. Read information about account terms on banking sites and consider consumer reviews about a bank’s customer service.
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2
Apply for the account online:
Once you choose an option, you can typically apply online in just a few minutes. You’ll need to provide your full name, residential address, contact information and Social Security or Tax ID number. You also usually need to upload an image of your government-issued ID, such as a driver’s license.
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3
Fund your account:
Once your account is approved, you need to fund it. If you have another checking or savings account, you can do this via an electronic funds transfer. However, in second chance checking situations, many people don’t have another account. Banks often provide initial deposit options that include PayPal or Venmo transfers, mailing a check from someone else to a lockbox, making a mobile deposit with a check or depositing cash via an ATM or service partner.
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If you want to open an in-person or online checking account with no ChexSystems check and no opening deposit, you may need to take a few steps that aren’t required when opening a traditional checking account.
Banks that offer second chance checking nationwide
Second chance accounts, which are sometimes called bad credit checking accounts, aren’t offered by every bank. However, some nationwide institutions do offer these types of accounts.
These banks include:
Chime
LendingClub
Go2bank
Chase
Current
Navy Federal Credit Union
Capital One
Varo
Note that not all of these institutions are traditional banks, and even traditional banks offer some second chance products that don’t work exactly like regular checking accounts. Always read the details of an account before you apply so you understand the various features you’ll get.
Tips for second chance checking
Improving your ChexSystems score and banking history can open new financial doors in the future.
Here are some tips for using second chance checking to do this:
Open the right account: Start by finding a free checking account with no credit check and no deposit requirement that doesn’t involve a ChexSystems check. This makes it easier to get the account and ensures you aren’t paying every month for the privilege.
Check your balance often: Use mobile banking options to keep an eye on your balance. When you understand what you have in checking, you’re less likely to overdraw your account and create a negative ChexSystems reporting item.
Don’t float checks: Floating checks refers to making payments with your account when you know you don’t have the money that day. Because payments can take a day or two to post, people sometimes gamble on a deposit hitting their account before a debit does, and doing this can leave you at risk of overdrafting.
Use alerts and notifications: Many mobile banking solutions let you set notifications to receive alerts when your balance is low. This can help you avoid over spending.
Review your statements: Check your statement every month for incorrect or potentially fraudulent charges. Report those immediately to take advantage of any protection your bank offers.
Alternatives to second chance checking accounts
If you don’t find a second chance credit union or bank you like, you have other options.
You can use prepaid debit cards to make purchases just as you would with a traditional checking account debit card. You can also use check-cashing services at local banks and retail stores to convert your paycheck to cash and buy money orders to pay bills.
These alternatives are less convenient than having a checking account, though, so working on rebuilding your ChexSystems history can be a good idea.
Our top picks for the best checking accounts
FAQ: Second chance checking accounts
Is a second chance checking account worth it?
Second chance checking can help you rebuild your bank history. It can be worth it to put some work into this task if it helps you access better checking and savings options in the future.
Which banks give you a second chance?
Several banks across the country offer second chance checking accounts, including Chase, Chime, Current, LendingClub and MPH. You may also find some second chance checking options at local banks and credit unions.
Can I get a second chance checking account with no opening deposit?
Yes, some banks offer accounts that don’t have to be funded immediately.
Which banks don’t use ChexSystems to open an account?
Chase, Chime, Current, LendingClub and MPH are all banks that don’t use ChexSystems. This may make it easier for you to open a checking account and help you build a positive credit history, even if your ChexSystems record isn’t perfect.
Can I open a second chance checking account if I have a negative balance at another bank?
Yes. Banks that don’t do credit or ChexSystems checks as a prerequisite for opening an account would likely not even know about your negative balance or history with another bank.
Why am I being denied a second chance bank account?
If a bank reviews your ChexSystems or credit reports, they might deny you a second chance account because your negative history exceeds a certain threshold. You may also be denied an account even when credit or ChexSystems reports aren’t considered if you don’t have the necessary form of ID or didn’t provide the required information such as a valid residential address.
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