If you’ve been denied a bank account because of past financial mistakes, you’re not alone. Banks use ChexSystems and Early Warning Services (EWS) to track overdrafts, unpaid fees, and account closures—making it difficult to open a new account. Without a checking account, everyday financial tasks become harder, from paying bills to depositing a paycheck.
That’s where second chance checking accounts come in. These accounts give you another shot at managing a bank account while rebuilding your financial history. Some come with fees and restrictions, but many offer features similar to standard checking accounts. And if you use them responsibly, you may qualify for an upgrade to a regular account over time.
Best Second Chance Checking Accounts
We’ve done the research to find the best second chance checking accounts available nationwide, plus over 200 local banks and credit unions that can help you get back on track.
1. SoFi
- Up to $300 sign-up bonus with direct deposit
- No minimum opening deposit
- Earn up to 3.80% APY
- Over 55,000 fee-free ATMs
- Early pay with direct deposit
2. Upgrade
- No monthly fees or overdraft fees
- No minimum opening deposit or balance requirements
- Get paid up to 2 days early
- Earn up to 2% cash back on select purchases
3. Current
- Build credit and earn points with every swipe
- No minimum opening deposit or maintenance fees
- Get paid up to 2 days faster
- Over 40,000 fee-free ATMs
4. Chime
5. GO2bank
- Earn up to 4.50% APY on savings
- 19,000 fee-free ATMs
- Cash deposits at 90,000 retail locations
- Overdraft protection up to $200
6. Chase
- $100 bonus with qualifying purchases
- No credit check or ChexSystems
- No overdraft fees
- 16,000+ fee-free ATMs
7. Walmart MoneyCard
- Up to 3% cash back at Walmart
- Overdraft protection up to $200
- Earn 2.00% APY on savings
- $5.94 monthly fee waived with $500 direct deposit
8. LendingClub
- Earn 1% cash back on debit card purchases
- No monthly fees or minimum opening deposit
- Earn up to 4.50% APY on savings
- Get paid up to two days early with direct deposit
9. Capital One 360
- No monthly fees
- No minimum opening deposit
- Earn up to 3.70% APY on savings
- Over 70,000 fee-free ATMs
10. Wells Fargo
- No overdraft fees
- $25 minimum opening deposit
- $5 monthly fee (waived for ages 13-24)
- Mobile app and online banking access
11. Bank of America
- No overdraft fees
- $25 minimum opening deposit
- $4.95 monthly fee (waived for students under 25)
- Debit card with access to mobile and online banking
What is a second chance checking account?
Banks and credit unions use ChexSystems and Early Warning Services (EWS) to track banking history. If you’ve had overdrafts, unpaid fees, or account closures, you may have trouble opening a new checking account.
Second chance checking accounts help people with a negative banking history regain access to everyday banking. Unlike prepaid debit cards, these accounts allow for direct deposits, bill pay, and debit card access—sometimes with the option to upgrade to a standard account.
These bank accounts for bad credit may come with monthly fees or restrictions, but they offer a path back to mainstream banking. Some even provide overdraft protection, rewards, or early direct deposits. Managing a second chance account responsibly can improve your banking history and open the door to better financial products in the future.
See also: Banks That Don’t Use ChexSystems & Credit Unions That Don’t Use ChexSystems
How to Choose the Best Second Chance Checking Account
Not all second chance checking accounts are the same. Some have high fees, while others offer a path to a regular checking account. Here’s what to consider when choosing the right one.
Monthly Fees
Many second chance accounts charge a monthly maintenance fee, but some waive it if you set up direct deposit or maintain a minimum balance. Before opening an account, check if there’s a way to avoid the fee to save money.
Restrictions
Some accounts come with limitations, such as:
- No check-writing privileges
- Limits on withdrawals or transfers
- A required financial education course
If an account has restrictions, make sure they won’t interfere with your everyday banking needs.
Upgrade Potential
The best second chance accounts allow you to switch to a standard checking account after several months of responsible use. Look for banks that offer an upgrade option so you don’t stay in a restricted account longer than necessary.
Online vs. In-Person Banking
Consider whether you need access to physical branches or if online banking is enough. Many second chance accounts are offered by online banks, which typically have lower fees and better features. If you prefer in-person banking, look for a local credit union or regional bank.
Additional Features
Some second chance accounts come with extra perks, including:
- Cash back on debit card purchases
- Overdraft protection
- Access to a large ATM network
The best account for you will depend on your banking habits and how quickly you want to move toward a traditional checking account.
Pros & Cons of Second Chance Checking Accounts
Second chance checking accounts can help you get back into the banking system, but they also come with some trade-offs. Here’s what to consider before opening an account.
Pros
- Gives you access to essential banking services – Having a checking account makes it easier to pay bills, deposit paychecks, and manage your money.
- Helps you rebuild your banking history – Responsible account management can improve your standing with banks, potentially leading to an upgrade to a standard checking account.
- Safer and more convenient than cash or prepaid cards – Using a debit card and online banking makes it easier to track spending and avoid extra fees.
Cons
- May have monthly fees – Some second chance accounts charge unavoidable maintenance fees, though some can be waived with direct deposit.
- Limited features – Certain accounts restrict check-writing, overdrafts, or require financial education courses.
- Does not build credit – While a second chance account can improve your banking history, it won’t directly impact your credit score.
These accounts can be a great stepping stone to traditional banking, but it’s important to choose one with reasonable fees and features that fit your needs.
Final Thoughts
A negative banking history doesn’t have to hold you back. Second chance checking accounts provide a way to rebuild your financial standing while giving you access to essential banking services. Whether you choose an online bank with no monthly fees or a local credit union with upgrade options, the right account can help you move toward better financial opportunities.
To make the most of your account, focus on responsible banking habits—keep your balance positive, avoid overdrafts, and use direct deposit if possible. Over time, many banks offer the option to switch to a standard checking account with fewer restrictions.
Having a checking account makes managing money easier and can save you from costly fees associated with prepaid cards or check-cashing services. The key is finding an account that fits your needs and helps you work toward a stronger financial future.
