The 6 Best Options for a Second-Chance Checking Account

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If you’ve found yourself in a situation where your checking account was closed for irresponsible banking and you haven’t been able to get approved for another checking account, don’t lose hope. Second-chance accounts are alternative bank account options with limited features, which can help you build up your score and regain standard banking account privileges within six months to a year.

6 Best Second-Chance Checking Accounts

Here are the best second-chance accounts offered by banks like Wells Fargo and other financial institutions. These accounts are designed to give people who have struggled in the past a second chance to prove themselves responsible when it comes to their bank accounts. Use the information to compare accounts and decide which one might benefit you.

1. Chime® Second Chance Banking Account

Chime* is a convenient option for many as it operates exclusively online. For those in need of a second chance, it offers the Chime Second Chance Banking account.

  • Why consumers like it: Chime doesn’t require a credit check. They also have no minimums or hidden fees1. In addition, account management is easy with the user-friendly mobile app.
  • Benefits: Chime has a simple account-opening process. Plus, you will be able to deposit2 your employer’s paycheck up to two days early3.
  • Drawbacks: Chime is online only, making it difficult to deposit checks4 or cash.
  • Fees: None
  • Minimum deposit: None
  • Minimum balance: None
  • Balance to avoid fees: None
  • Uses Chexsystems when reviewing applications: No
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2. First American Bank Fresh Start Checking

The First American Bank Fresh Start Checking account was designed to give consumers who have had past banking challenges a fresh start. First American Bank has in-person banking locations in Wisconsin, Illinois and Florida.

  • Why consumers like it: First American Bank offers perks, such as free ATM use and free online statements.
  • Benefits: First American Bank offers unlimited check writing and free check images online.
  • Drawbacks: In-person branches are limited.
  • Fees: $9.95 per month
  • Minimum deposit: $50
  • Minimum balance: None
  • Balance to avoid fees: No option to waive fees
  • Uses Chexsystems when reviewing applications: Yes

3. GTE Financial Go Further Checking

The GTE Financial Go Further Checking account is available to GTE Financial’s members, but it’s easy to qualify for membership. The credit union will consider upgrading you to an enhanced checking account after 12 months of positive banking history.

  • Why consumers like it: Affordable, full-service banking with options to waive fees.
  • Benefits: GTE Financial offers mobile check deposit, direct deposit and bill pay.
  • Drawbacks: Branch locations are only in Florida. A monthly fee if requirements aren’t met.
  • Fees: $9.95 a month, which can be waived by meeting the set requirements.
  • Minimum deposit: $5
  • Minimum balance: None
  • Balance to avoid fees: $500 in aggregate deposits
  • Uses Chexsystems when reviewing applications: Yes

4. Wells Fargo Clear Access Banking

If you’re looking for a second-chance checking account offered by a brick-and-mortar bank, you may want to consider the Wells Fargo Clear Access Banking account.

  • Why consumers like it: In-person banking is available unlike some other banks offering second-chance accounts.
  • Benefits: Wells Fargo has a high number of physical branches and ATMs nationwide.
  • Drawbacks: There are no check-writing privileges.
  • Fees: $5 a month
  • Minimum deposit: $25
  • Minimum balance: None
  • Balance to avoid fees: None. The monthly fee, however, is waived for account holders 24 and younger.
  • Uses Chexsystems when reviewing applications: Yes

5. Varo Checking Account

The Varo Checking Account is a second-chance bank account that you can open online. The difference between this account and other standard accounts is that the bank doesn’t require applicants to undergo a credit check. Colin Walsh, founder and CEO of Varo, says: “At Varo, we look holistically at customers’ applications for bank accounts, and we are thrilled when we can be part of someone’s journey to get back on their feet … Additionally, we do not do a credit check when someone applies for a bank account.” Also, Varo Bank does not use ChexSystems when reviewing bank account applications for approval.

  • Why consumers like it: Varo is a standard online account that treats all approved customers the same.
  • Benefits: No fees apply, and you can get your paycheck up to two days earlier with direct deposit.
  • Drawbacks: The online-only bank has some limitations, like no physical branches and difficulty depositing cash.
  • Fees: No monthly fees
  • Minimum deposit: None
  • Minimum balance: None
  • Balance to avoid fees: None
  • Uses Chexsystems when reviewing applications: No
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6. SoFi Money Account

The SoFi Money account offers check-writing privileges, early access to your paycheck and no account fees and coverage for overdrafts.

  • Why consumers like it: The So-Fi Money account is easy to open and has no monthly fees. Free overdraft protection and up to 15% cash back at local businesses are also is available.
  • Benefits: For customers who choose direct deposit, SoFi offers interest at a current rate of up to APY provided you have a monthly direct deposit of any amount. You’ll also be eligible for a cash bonus of $50 to $250 with a qualifying direct deposit of at least $1,000. The interest rate is reduced to APY if that requirement isn’t met.
  • Drawbacks: Because there are no branches, interactions with staff are limited. Representatives aren’t available by phone on a 24/7 basis.
  • Fees: None
  • Minimum deposit: None
  • Minimum balance: None
  • Balance to avoid fees: None
  • Uses Chexsystems when reviewing applications: No

What To Look For in a Second-Chance Bank Account

Fees are common in second-chance checking accounts, but some accounts have fewer fees or lower costs than others. It can pay off to compare second-chance account offerings from different financial institutions. You would also do well to find an account without account minimums. Many second-chance checking accounts are also regional, so you may want to look for accounts offered by banks in your area.

Alternatives to a Second-Chance Checking Account

Second-chance checking is not the only option for building your credit again. Here are some other viable options for those who can’t open a standard bank account.

Prepaid Debit Card

A prepaid debit card is a card that you can load cash onto and spend as needed. The card will be declined if you attempt to spend more than the available balance. Prepaid debit cards can be a helpful tool for managing a budget. Fees may apply, however. Plus, this product will not help you build credit the same way a second-chance checking account does.

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Check Cashing

If you don’t want or need a bank account or debit card, you can always simply cash a check with various institutions. While check-cashing places may be convenient, the convenience comes at the cost of fees that can eat into your check’s value. If you decide to go with this option, research the fees at different check-cashing businesses to save the most money.

Final Take

Many options exist for people who don’t want — or can’t have — a banking account. Second-chance banking can be a good option for those who have fallen out of favor with financial institutions. With this type of account, you can rebuild trust with banks in six to 12 months for a minimal cost.

When looking for second-chance bank accounts, it’s worth checking with regional institutions near you. Sometimes, smaller banks and credit unions often offer better deals than national banks.

FAQ

Here are the answers to some of the most frequently asked questions regarding second-chance checking accounts.
  • What bank gives you a second chance?
    • Some banks that offer second-chance checking accounts are Varo, SoFi and Wells Fargo.
  • What is the best second-chance checking account?
    • The best second-chance bank account is the one offering the lowest minimums and fees so be sure you read the fine print before opening an account.
  • Which banks do not use ChexSystems?
  • Can I open a second-chance checking account online?
    • Yes, it is possible to open a second-chance checking account online. Chime and Varo both offer online-only accounts.
  • What is a second-chance checking account?
    • Second-chance checking accounts are a type of checking account for people who need to rebuild the trust of banks due to previous poor banking behaviors, such as excessive overdrafts or having their bank account closed involuntarily. These accounts may have more fees and limits, and they may not include check writing.
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Jami Farkas and Cynthia Measom contributed to the reporting for this article.

Data is accurate as of March 9, 2023, and is subject to change.

*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

1There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

2Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.

3Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

4Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

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