Which Banks Offer Second Chance Checking Accounts In 2024

A second chance checking account could be a solution to your previous banking issues that prevented you from opening a checking account.

A second chance checking account can be obtained even with a less than perfect banking history. There are some banks that offer more robust banking options when you upgrade from Which Banks offer Second Chance Checking Accounts. Many banks nationwide, as well as online and local credit unions, offer second-chance checking accounts.

The following article offers you all the information you require regarding Which banks offer second chance checking accounts. What are they, how do they work, and where can I get them?

Now, let’s get started.

What Are Second Chance Checking Accounts?

Second Chance Checking Accounts are designed for customers with blemished banking profiles who cannot qualify for standard checking accounts. These accounts are typically more restricted, have mandatory fees, and provide fewer conveniences. However, they provide consumers with a chance to remain part of the banking system and demonstrate their ability to manage their accounts responsibly.

The customer may qualify for a regular checking account with fewer fees after six to twelve months of handling the second-chance account correctly. A customer may be able to request this automatically or must request it from the bank.

What is The Purpose of Second Chance Banking?

The purpose of second chance checking accounts is an important consideration before we define them. The first step is to understand ChexSystems a bit better.

What is ChexSystems? It is equivalent to a credit bureau in the banking industry. A consumer’s banking history can be viewed here, including basic information like name, address, and Social Security number, as well as bounced checks, overdrafts, unpaid balances, and suspected fraud.

The ChexSystem report may be checked when a bank or credit union considers extending its services to a new customer. A bank can refuse regular checking services to a client who has a negative report item, such as an unpaid overdraft, an involuntary account closure, or a high number of recent inquiries.

That’s when second-account checking comes into play. Second-chance bank accounts are those offered by banks who are willing to overlook less-than-stellar banking histories. In this way, a client can maintain a bank account while rebuilding their ChexSystem report.

How Do Second Chance Bank Accounts Work?

Second chance banks focus more on providing individuals with essential banking services than traditional banks, which rely heavily on an applicant’s credit history and ChexSystems report.

Second Chance Banking emphasizes offering basic banking services such as checking accounts, savings accounts, debit cards, and online banking access to help individuals manage their finances. There will be no credit checks performed on you for any of the services they offer. It is also ideal for students with no credit history at all to utilize these services.

Second Chance Checking Accounts: Why Should You Get One?

Second chance checking accounts are offered by banks knowing your ChexSystems, TeleCheck, or EWS records.

The information on your file may still result in your application being denied. The majority of banks will not deal with you if you have committed repeated counts of check fraud, for example.

However, most second chance checking accounts are guaranteed to be approved. These banks understand that sometimes good customers make mistakes. You can still get a loan even if you have bad credit or past banking issues.

A bank or credit union that uses ChexSystems may reject you for an unpaid overdraft fee or a loss of non-sufficient funds. However, second chance banks overlook these types of offenses.

Most banks approve Second Chance Checking account applications very quickly, and approval rates are very high. There are similar features available with these banks and credit unions to regular bank accounts.

Now is the perfect time to open a second chance checking account so you can start banking again. The quickest and easiest way to improve your bank history is to do this.

Do I Need A Second Chance Account?

Are you being denied a checking account because of past mistakes? Then, you’ll have to take another route. Companies like ChexSystems and TeleCheck maintain the database of checking account holders. The information is retained for five years. These services enable banks to track and share accountholder data. It is estimated that 85% of financial institutions use these services.

Has a bank rejected you due to previous checking mismanagement? It is likely that other banks will learn about these services and decide not to do business with you as a result.

The best course of action would be to open a second-chance bank account in this situation. There are no application requirements like those for traditional accounts. In addition, they often aim to rebuild your credit history.

Which Banks Offer Second Chance Checking Accounts?

Several banks offer Second Chance Checking Accounts. The following are some of them. You can choose the one that best suits your needs. 

Chime

According to us, Chime is the best second-chance checking account service in the country. Furthermore, Chime offers many educational resources that can help you navigate your finances, including no minimum balance requirement, no monthly fee, and no credit check.

The Chime® company is a financial technology company that offers second chances to those who have been denied accounts elsewhere. Banks do not use chexSystem reports or credit checks to approve applications. The Chime account does not require a minimum balance, monthly fees, or overdraft fees. There are over 60,000 surcharge-free ATMs and a free debit card available to customers. 

Chime Features

• A total of 14.5 million downloads
• ChexSystems or credit checks are not required
• There is no minimum opening deposit required
• ATMs with over 60,000 fee-free

Chase

The Chase Secure Banking checking account is offered by Chase. Several thousand ATMs are fee-free with the Chase debit card that comes with the checking account. There are no overdraft fees with this checking account, and you can pay your bills online for free. However, there is a monthly service fee of $4.95.

You’ll receive $100 cash when you open a Chase Secure Banking account and make ten qualifying purchases within 60 days.

Chase Features

• ChexSystems or credit checks are not required
• The bonus of $100 after 10 purchases within 60 days
• ATMs with over 16,000 fee-free machines
• Nationally, there are over 4,700 branches
• Service fee of $4.95 per month

 Varo Bank Account

The Varo digital bank is an FDIC member that provides second chance banking services without monthly fees, minimum balance requirements, or credit checks. Varo offers innovative credit solutions, such as Varo Advance and Varo Believe Credit Builder Card. Varo is a national bank that only operates online.

A minimum balance requirement is not required, nor are there any monthly fees or overdraft fees associated with the account. There are more than 40,000 fee-free ATMs in the Varo network, and customers who have direct deposits can access their funds two days earlier. Varo is an all-mobile bank account app made by Bank of America. The company does not charge monthly or hidden fees on its second-chance checking account.

 Varo Bank Account Features 

• There is no minimum opening deposit.
• There is no monthly fee.
• There are 40,000 ATMs.
• Do not use ChexSystems.

Wells Fargo 

It is a second chance checking account with no overdraft fees. For account holders over 24, there is a $5 monthly fee and a $25 minimum deposit to open the account. The Wells Fargo Clear Access account can be converted to another bank account after 365 days for customers with poor banking histories. There is a $25 minimum deposit required for opening an account. The bank provides free online bill pay, mobile banking, and ATM access at over 13,000 locations.

Wells Fargo Features

• A $25 opening deposit is required
• An online and mobile banking suite is included
• Free access to over 13,000 ATMs
• Debit card alerts, 24/7 fraud monitoring, and zero liability protection

Capital One 360 Checking

Capital One 360 Checking is a great big bank option for those who just need basic banking services since it does not survey your credit history through ChexSystems, making it easier to qualify. This account is free to open, does not charge maintenance fees, and does not require a minimum balance.

Capital One stopped using ChexSystems when screening account applicants in 2014, even though it’s technically not a second-chance account. Poor credit won’t prevent you from taking advantage of 360 checking account benefits, including no fees or minimums.

Capital One 360 Checking Features

• There is no minimum opening deposit.
• There is no monthly fee.
• There are 70,000 ATMs.
• Do not use ChexSystems.

 U.S. Bank

Those who have a U.S. Bank Smartly® Checking account will receive a complimentary debit card with the option to lock or unlock it in the event it is lost or stolen.

Additionally, you won’t be charged ATM transaction fees at U.S. banking institutions or surcharge fees at MoneyPass Network ATMs.

ChexSystems is used by U.S. Bank, but it is known for being more lenient with records than most banks.

As long as you do not have any fraud history or owe any money to U.S. Bank, a checking account may be available to you.

There is a $25 minimum deposit for this account, and the monthly service fee is $6.95. This fee can be avoided by maintaining a minimum balance of $1,500 or by having a minimum $1,000 direct deposit.

 U.S. Bank Features

• Bonus of up to $400
• A $25 opening deposit is required
• There is a monthly service fee of $6.95 or $0
• More than 40,000 MoneyPass ATMs are surcharge-free

SoFi

SoFi’s Checking and Savings account comes with several advantages, such as no overdraft fees or minimum balance requirements.

Moreover, account holders enjoy no-fee access to 55,000 ATMs through the Allpoint® Network. The annual percentage yield (APY) on savings accounts is 4.60%, and on checking accounts it is 0.50%.

The SoFi debit card also offers SoFi members the option to earn up to 15% cash back at local establishments when using direct deposit.

SoFi Features

• Direct deposits qualify for a $300 sign-up bonus
• There is no monthly fee
• Save and earn up to 4.60% APY
• ATMs with no fees over 55,000

How To Pick Second Chance Checking Accounts?

Second chance checking accounts often have limited options. There are generally fewer benefits associated with these accounts than with standard checking accounts. The following factors should be considered when choosing Second Chance Checking Accounts:

• Second chance checking accounts are usually charged monthly fees by banks and credit unions. Keeping an eye on these and other fees can save you a lot of money.
• A requirement for the account. Establish whether an account requires a minimum opening deposit or an ongoing balance requirement. Your ability to deposit or maintain money in the account will determine the amount you deposit.
• Inclusion of accessibility. Try to find an online or mobile bank or credit union that offers debit cards and ATM access near you, and ask about online and mobile banking.
• Your checking account options may be limited due to blemishes on your banking history, but don’t choose an account that may damage your record further. You should shop around for the best deal.

Things To Consider When Picking Second Chance Checking Accounts

Do you want a second chance to open a bank account but are unsure of where to begin? The following are some of the top features to prioritize:

No or Low Fees

 A monthly service fee may be charged by some financial institutions just to establish a bank account. The cost of banking can be especially prohibitive for low-income families. Rather than paying monthly maintenance fees, look for an account that charges low fees – or none at all.

No Minimum Balance Requirements

 A failure to meet minimum balance requirements contributes to 4.5% of households being unbanked, according to the FDIC. Second Chance Checking Accounts aren’t often required to meet minimum balance requirements.

Automatic Savings Features

 Several financial institutions offer helpful features that help you grow your savings. Consider sending a portion of your paycheck directly to your savings account or rounding up debit card purchases.

No Overdraft Fees

 The fees for overdrafts can add up quickly – and households with a tight budget are more likely to overdraft. Consider a second chance account that offers no-fee overdrafts to avoid these fees.

Use of ATMs

 A checking account might not be your standard method of keeping your money, so make sure you have easy access to cash whenever you need it. Choose a bank account with a wide array of ATMs that don’t charge fees for money withdrawals.

Other Financial Features Available

You may also need to work on your credit score if you want Second Chance Checking Accounts. Open a second-chance account where you can get a secured credit card to repair your credit. The Chime Credit Builder Secured Visa® Credit Card, for instance, allows members to create credit safely – without a credit check.

Easy-to-Use App

 Apps for mobile banking may make it easier to monitor low balances, manage your spending, and be reminded of bills due.

Pros And Cons of Second Chance Checking Accounts

Second Chance Checking Accounts may be the only option for those who have been rejected for a standard checking account. These accounts are a great way to improve your financial situation, but they don’t solve all your problems. Second chance checking accounts have the following benefits and drawbacks.

Pros of Second Chance Checking Accounts

• It is easy to qualify, even with a bad credit history
• There is usually access to online and mobile banking
• There is often a free debit card, and checkbook included

Cons of Second Chance Checking Accounts

• Checking accounts with higher fees
• Overdraft restrictions
• There are limited benefits and perks
• Banks are fewer in number

Second Chance Checking Accounts vs. Non-ChexSystems Checking

Doesn’t it seem like they are similar? The answer is no. It depends on how specific you want to be. A “second chance” checking account and a “non-ChexSystems” checking account serve the same purpose but are technically separate.

• ChexSystems reports are not screened when you apply for a non-ChexSystems checking account.
• The report is usually checked when you apply for Second Chance Checking Accounts.
• Additionally, second chance banking may come with some restrictions or additional requirements. You may have to enroll in a course that teaches personal finance before you can open a checking account with the institution.
• However, the two terms are frequently used interchangeably.

As a result, both of these types of bank accounts share a lot in common. Since they are similar despite their differences, they are often lumped together.

Alternatives To Second Chance Checking Accounts

Prepaid Debit Card

A checking account is not required to pay bills or make purchases. There are several tools available, such as prepaid debit cards. The prepaid debit card has features similar to those of a debit card, but it isn’t linked to a bank account. A cardholder can spend only the amount loaded onto the card. A reloadable card can be used to replenish exhausted funds.

A prepaid debit card can help you budget your money and control your spending, but they do come with fees, so consider that before you choose one. Prepaid debit cards are available from banks, Visa and Mastercard, and some retailers, like Walmart.

Secured Credit Card

You can also open Second Chance Checking Accounts with a secured credit card. People with bad credit, limited credit history, or no credit history can use a secured credit card. A collateral deposit usually backs the credit card. A card is only good for spending money that has been deposited into it.

You can raise your credit score and control your spending by using a secured credit card responsibly. You should also watch out for fees and high annual percentage rates (APRs), especially if you don’t pay your balance in full and on time.

FAQs

Conclusion 

Millions of Americans live without checking or savings accounts, so those without an account may be missing out on conveniences and services that can reduce money-order fees. You might be able to open a second chance bank account if your banking past makes it difficult for you to open a traditional account.