Best Second Chance Checking Accounts 2020

If you’ve had banking problems in the past, like unpaid overdraft fees or bounced checks, you may have a hard time opening a new checking account.

Today, most banks look into your banking history, using consumer reports to determine whether or not to accept your application.

Fortunately, some banks have second chance checking accounts for individuals with less-than-stellar banking histories.

These accounts can give you a fresh start, allowing you to establish a solid track record and gain access to the convenience of a bank account.

We’ve thoroughly researched all of your best second chance banking options, evaluating them by their fees, features, and availability.

Top 7 Best Second Chance Checking Accounts

Here are our top seven picks for second chance checking accounts:

Chime Spending Account
BBVA Easy Checking
Radius Essential Checking
Wells Fargo Clear Access Banking
Peoples Cash Solutions Second Chance Checking
Bank of America Advantage SafeBalance
OneUnitedBank U2 Checking

Chime Spending Account

Chime is an online platform that aims to offer affordable and easy-to-use banking services, whether your banking history is perfect or spotty.

The FDIC-insured bank promotes the fact that it does not rely on credit inquiries or ChexSystem to approve applicants for second chance checking.

Checking account holders can also open a high yield savings account with Chime.

The checking account comes with everything you would expect from a traditional bank, including paper checks upon request.

Key Features

No minimum deposit or balance requirements
No monthly service fees
Free debit card
Mobile deposits
$100 overdraft protection with Spotme
38,000+ fee-free ATMs

BBVA Easy Checking

BBVA is another premier bank that offers flexible checking options for individuals with a poor banking history.

The bank encourages applicants to submit an application for their Free Checking Account.

If you aren’t approved for Free Checking, you’ll get the opportunity to open their second chance bank account, the Easy Checking Account.

After 12 months, you can upgrade to Free Checking or one of BBVA’s other accounts.

This account is available to customers in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.

Key Features

$25 minimum deposit
$13.95 monthly service fee
Free Visa debit card
Cashback rewards on daily purchases
Free electronic statements or $3 paper ones
Mobile banking, deposits, and bill pay
Upgrade eligibility after 12 months
64,000+ fee-free ATMs

Radius Essential Checking

Radius is an online bank with services in all 50 states.

Like BBVA, Radius allows you to upgrade to a regular checking account after 12 months of responsible banking with the Essential account.

Essential Checking account holders also get access to Radius’ personal finance apps, too.

While the account does come with a service fee, at $9 a month, it’s lower than some competitors.

Radius gives you excellent features, widespread accessibility, and an easy-to-use platform. Just be aware of the fees for exceeding your funds.

Key Features

$10 minimum deposit
$9 monthly service fee; $25 non-sufficient funds fee per item; $5 daily overdraft fee
Mobile banking, bill pay, and direct deposit
Free debit card
32,000+ fee-free ATMs
Upgrade eligibility after 12 months
Full access to money management tools

Wells Fargo Clear Access Banking

Wells Fargo is another major bank with a checking account tailored to applicants with poor banking histories or subpar credit.

The Clear Access Banking account is available in 39 states and Washington D.C.

You get access to all the personal finance tools offered by Wells Fargo, with fraud monitoring, account alerts, and most other features of a standard checking account.

The only feature missing is the ability to write checks.

Unlike other banks, Wells Fargo does not charge you for insufficient funds or overdrafts.

Key Features

$25 minimum deposit
$5 monthly service fees (waived for 13-24-year-old account holders
Free debit card
Mobile banking, direct deposit, bill pay
Zelle transfers
13,000+ fee-free ATMs
24/7 customer service and access to money management tools

Peoples Cash Solutions Second Chance Checking

Unless ChexSystems or TeleChex have detected fraudulent activity on your behalf, you can get approved for Peoples Cash Solutions’ second chance bank account.

The account is available in all 50 states, though the bank is located in Texas.

With low monthly service fees and an abundance of features, Peoples Cash Solutions has a lot to offer.

You can use your card or make a deposit at the bank, Western Union, or an ATM.

Just note that the Texas-based bank’s ATMs are limited, and you’ll have to pay a small transaction fee outside of ATMs owned by the bank.

Key Features

$30 minimum deposit
$4.95 service fee and $20 account closure fee (first 90 days)
$27.50 overdraft and non-sufficient funds fees
Joint accounts optional
Mobile banking, transfer, bill pay
Free debit MasterCard and checkbook
$2 transaction fee outside of Peoples Bank ATMs

Bank of America Advantage SafeBalance

Bank of America’s checking account is called Advantage Banking, and it allows you to choose one of three “settings.”

One setting, Advantage SafeBalance, is geared towards individuals with poor banking records.

The flexible account is designed to help you improve your banking history with rewarding benefits.

You’ll get a debit card, access to nationwide ATMs, and plenty of account features from one of the most highly regarded banks in the nation.

You could even waive the account’s low monthly fee by enrolling in the bank’s rewards program or being a student. Just note that you won’t get checks with this account.

Key Features

$4.95 monthly fee (could be waived)
$25 minimum deposit
No check writing option
Free debit card
No overdraft fees
16,000+ fee-free ATMs
Mobile banking, transfers, bill pay
Mobile app with money management tools

OneUnitedBank U2 Checking

With OneUnited’s U2 checking account, you’ll have the opportunity to boost your banking credibility while enjoying the basic benefits of a checking account.

While it may have less brand recognition than Wells Fargo or Bank of America, OneUnited Bank is available in all 50 states, with some local branches.

U2 account holders get the same range of benefits offered by their competitors, with free online banking and some purchase rewards. When you open a U2 account, you also have to open one of the bank’s savings accounts alongside it.

Like Bank of America, OneUnited’s checking accounts are offered in tiers. You choose the membership level that best fits your finances and goals, which determines your fees and account features.

While the account is rewarding, it does come with slightly higher fees and deposit requirements.

Key Features

$12 monthly fee
$50 minimum deposit
25,000+ fee-free ATMs
Local branch assistance
Free Visa debit card
Mobile banking, bill pay

Top Regional Second Chance Bank Accounts

While they may be less accessible depending on where you live, the following second chance checking accounts are also worth considering if you live in an area where they’re offered.

Ascend Checking from American Airlines Credit Union

Fresh Start Checking from Appalachian Community Federal Credit Union

Pathway Checking from Bank of the Ozarks

Opportunity Banking from BOK Financial

Opportunity 100 Checking from Centennial Bank

Bounce Back Checking from City National Bank

Fresh Start Checking from Corporate America Family Credit Union

Fresh Start Checking from Farmers and Merchants State Bank

Express Banking from Fifth Third Bank

CLEANslate Checking from First Financial Bank

Clean Start Checking from GenFed Financial

Bank on Checking from HomeStreet Bank

Easy Checking from Hope Credit Union

Fresh Start Checking from InTouch Credit Union

Rebound Banking from Landmark Bank

Fresh Start Checking from MainSource Bank

StartFresh Checking from Premier Bank

Checking Builder from Republic Bank

Affordable Advantage Checking from Simmons Bank

Renew Checking from Staley Credit Union

Right Start Checking from Union Financial Credit Union

Opportunity Checking from Webster Bank

Second Chance Checking from Woodforest National Bank

What Is Second Chance Checking?

When your banking history features negative items like bounced checks, overdraft fees, and missed account fees, it can hinder your access to a traditional checking account.

If you apply for a bank account, the company may utilize a service like ChexSystems to look into your banking history.

Banks take on risk in approving applicants with poor banking track records, so it may be difficult to get approved for a standard account.

However, many have designed second chance checking accounts to wipe the slate clean and allow you to improve your banking reputation.

These accounts grant you the modern conveniences of a checking account with minimal fees, with some allowing you to upgrade to a more rewarding account after a designated period of responsible banking.

While some accounts might lack a few amenities like personal check writing or fee-free banking, the rewards far outweigh the alternatives in most cases.

Also, keep in mind that every account is different. If writing checks is important to you, for instance, there are plenty of accounts that include that service.

You just need to research all your options.

Second chance checking accounts can be an invaluable asset if you’ve messed up with money management in the past, helping you get back on track.

Pros and Cons of Second Chance Banking

There’s a lot to love about second chance checking, but are there any potential drawbacks?

Here’s a quick look at the advantages, and disadvantages, of opening a second chance account.

Pros

Rebuilding your reputation: Second chance checking accounts help you create a solid financial track record if you use them responsibly.
Money-saving: Money management can get costly without a bank account, with sneaky fees quickly adding up for pre-paid cards, check cashing, and cashier’s checks. Checking accounts help you bypass those pesky expenses.
Simple: Managing money without a bank account can be time-consuming. There’s no need to run to a check-cashing service when you have an online checking account. It puts the convenience of making payments and getting paid at your fingertips.
Easy approval: Many banks don’t even use ChexSystems or your credit report when it comes to approval for a second chance account. They’re made for individuals with spotty banking records, so you should get approved easily in most cases.

Cons

Fees: Some, but not all, second chance accounts charge a lot of fees. Be mindful of this when you choose an account.
Overdraft coverage: Outside of Chime and SpotMe, most banks won’t have your back when it comes to overdraft protection on second chance accounts.
No credit reporting: While you can report some healthy financial habits to credit bureaus, like making timely utility or rent payments, your responsible second chance checking use will have no effect on your credit score. If you’re looking to repair your credit, you’ll have to look elsewhere to boost your score.

How to Choose a Second Chance Bank Account

When it comes to choosing the right second chance checking, there are a few things you should look out for.

Fees: Look out for service fees, which can accumulate quickly if you aren’t aware of them.
Deposits: Check out the minimum deposit requirements before opening an account, Fortunately, many are low or non-existent.
Features: Consider which features matter most to you and make sure the account has them. This could include personal checks, direct deposits, or money transfers.
Availability: Not all banks offer second-chance accounts nationwide, so check out their areas of coverage. If there’s a local bank or credit union you know and trust, inquire to see if they offer second chance checking.
Debit card: A debit card is one of the biggest advantages of having a bank account. Make sure that it’s included with your account.
ATMs: Take a look at the ATM fees and number of free ATMs in your area, too. It could save you money to choose a bank that has widespread free ATMs in your area and abroad.
Upgrade eligibility: If you don’t want to be stuck with a second chance account forever, check to see if the bank you’re applying with offers the option to upgrade to a rewarding account later.

Alternatives to Second Chance Bank Accounts

Though they’re the best option in most cases, second chance banks aren’t the only option if you have a bad banking history.

The best alternative to a second chance account is a pre-paid debit card.

These cards are pretty straightforward. You pre-load funds onto a card from a major provider and can spend whatever’s there. When you try to overdraw, your purchase is declined.

Depending on the type of card you get, you could be able to use ATMs without incurring fees. Some also offer perks like a high yield savings account.

If you struggle with overspending, this could help you avoid fees, but there are second chance accounts that offer virtually the same service, plus a range of robust features.

You could also invest in a secured credit card, which has low or no credit and income requirements and is secured by a deposit.

These cards can be useful if you only need to make small purchases and want to improve your credit score, but paying them off can be complicated without a bank account.

You could also maximize the benefits of both by opening a second chance bank account to improve your banking history and a secured credit card to strengthen your credit score.

Frequently Asked Questions

What banks offer second chance checking?

Tons of banks across the nation offer second chance checking accounts. Many large nationwide banks provide these accounts, as do regional and local banks.

Do credit unions offer second chance checking?

Yes. Many credit unions also provide second chance checking accounts, so you can reach out to your local branch to see what options they have.

How do you open a second chance checking account?

You can apply for most second chance accounts online. Some banks will have you walk through their standard bank account application and offer you the second chance account if you don’t qualify for a conventional one, while others let you apply directly for second chance checking.

You may have to make a minimum deposit to activate your account.

Why was I declined for a new checking account?

You could be declined if you fail to meet the basic criteria for an account, like meeting the age requirement, living in the United States, or residing in a covered area. You could also be declined based on your financial history, particularly your history with checking accounts.

How long do you need to keep a second chance banking account before you can get a real one?

It depends. Many banks allow you to upgrade to their standard checking accounts after 12 months of responsible banking with a second chance account.

Which banks don’t use ChexSystems?

Some banks don’t factor your ChexSystems report into their approval decision for second chance checking accounts. Others, like Chime, market the fact that they don’t even use ChexSystems.

What are the credit score requirements for second chance checking?

While your application for a regular checking account may be declined based on your credit score, second chance banks don’t usually factor your credit score in as these accounts are designed to help people improve their financial track record. Read here to learn more about the Best Banks for Bad Credit.

What are the limitations of second chance bank accounts?

Some second chance checking accounts do not allow you to write personal checks, and many of them do not offer any kind of overdraft protection.

Are there free second chance checking accounts?

While you sometimes have to pay for services that improve, say, your credit score, that isn’t the case with all second chance banking accounts. Some accounts don’t charge service fees or require any kind of minimum deposit to keep your account open and in good standing.

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