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Second Chance Banking: 2023 List of Banks and Credit Unions in 50 States

Second Chance Banking: Ultimate list of banks and credit unions that offer second chance checking accounts in ALL 50 States.
second-chance-banking

Second chance banking is available in all 50 states. It's a great option for people denied a bank account due to bad credit, Early Warning Services or ChexSystems.

According to the National Consumer Law Center, more than 80% of banks and credit unions use consumer reports from agencies like ChexSystems or Early Warning Services to approve or deny applicants. Banks that offer second chance checking accounts overlook past bank account mismanagement.

Benefits of second chance banking

If you're conducting financial transactions without a bank account, you can rebuild your banking history with second chance banking. Having a bank account can be taken for granted until you don’t have one.

The hassle of a check-cashing store, loading money onto a prepaid card, the fees; not to mention the lack of access to financial products like personal, mortgage, or auto loans can impede you from making major purchases.

Nationwide second chance banking choices

Chime® Checking Account

Chime® is a financial technology company, not a bank. Checking, savings and secured credit card services are provided by Bancorp Bank, N.A. and Stride Bank. Chime® Checking Account is available online in ALL states. This account has many of the same functions as a traditional checking account, but it doesn’t come with paper checks.

The SpotMe® feature lets you overdraft your account up to $200 if you have a minimum $200 direct deposit.1 For people that need to build credit, the Chime® Credit Builder Secured Visa Credit Card can be opened with no credit check as long as you have a monthly direct deposit of at least $200 deposited in the Chime® Checking Account.2

More Chime® Checking Account Features

  • $0 Opening Deposit
  • No maintenance fees
  • Fee-Free Overdraft
  • Mobile & Online Banking
  • Get paid up to two days early with direct deposit3
  • Access to 60,000+ fee-free ATMs nationwide4
  • Deposits are FDIC insured

Learn More


SoFi Bank Checking & Savings

The SoFi Bank Checking and Savings Account is not a second chance checking account but SoFi Bank only requires verification of identity along with a $50 opening deposit from a debit card to open an account. Plus, new members can earn a $25 welcome bonus if they open the account with a $50 deposit using a debit card or make an opening deposit of $10 by linking to an external bank account. Earn an additional bonus up to $250 if you set-up a qualifying direct deposit from an employer, payroll, retirement pension, or benefits provider.

SoFi Checking/Savings Account Features

  • No monthly service fees
  • Minimum opening deposit is $10 using an external bank account or $50 if using a debit card
  • Interest earned with direct deposit is 4.20% APY on savings balances and 1.20% APY on checking balances
  • 55,000+ fee-free ATMs.
  • Get paid up to 2 days early with direct deposit.
  • No-fee Overdraft Coverage with qualifying monthly direct deposit
  • FDIC insured up to 2M


Go2bank Account

Go2Bank is a digital banking platform offered by Green Dot Corporation, a financial technology company. It provides a range of banking services and features accessible through a mobile app. Go2Bank aims to provide convenient and inclusive banking solutions to individuals who may have limited access to traditional banking services.

Go2Bank Account Features

  • No monthly fees with eligible direct deposit, otherwise $5 per month¹
  • No hidden fees²
  • Overdraft protection up to $200, with opt-in and eligible directs³
  • $0 Minimum deposit
  • Get your pay up to 2 days early with direct deposit⁶
  • Free nationwide ATM network⁷
  • FDIC-insured up to $250,000

Learn More


OneUnited Bank

OneUnited Bank is available online in ALL States plus they have branches in CA, FL, MA. The minimum opening deposit is $25. Customers enjoy second chance checking with free online & mobile banking, get cash surcharge-free at over 30,000 ATMs nationwide, deposit checks through the mobile app. Add cash to the OneUnited Bank Debit Card at over 90,000 locations across the country through a partnership with Green Dot. To get started go to the “Get the Card” button, enter your name, email address and cell phone number. Choose the Black Wall Street Checking account option along with the opening deposit, then complete your identification details (name, address, SSN, and employer).

U2-Checking Features

  • $0 Monthly fees
  • $25 Minimum opening deposit
  • Obtain cash, surcharge free at over 37,000+ ATMs
  • Up to 20% cash-back in different categories like food, hair products, hotels, cosmetics, home goods.
  • Get paid up to two days earlier with direct deposit
  • Cash advance feature called “CashPlease” that offers a short-term loan up to $1,000 without a credit check
  • FDIC-insured

Learn More


Consumers Credit Union

Consumers Credit Union (CCU) is a credit union located in Illinois that serves individuals across the United States. For people that live in Illinois, there are multiple branch locations across the state. Consumers Credit Union offers a range of financial products and services. These may include checking accounts, savings accounts, certificates of deposit (CDs), money market accounts, individual retirement accounts (IRAs), credit cards, personal loans, auto loans, home loans, and business banking solutions. They may also provide online banking and mobile banking options for convenient account management.

Consumers Credit Union Account Features

  • Unlimited reimbursement for any and all ATM fees**
  • Over 30,000 ATMs & over 5,000 shared branches
  • Online & mobile banking plus bill pay
  • Get paid as much as two days early with early direct deposit**
  • No monthly maintenance fees, for anything


Regional second chance banking

American Airlines Credit Union

Ascend Checking available in AZ, CA, FL, IL, MA, NC, NJ, NY, OK, PA, TN, TX, TN and DC. Monthly service fee of $9.75 with direct deposit and $12.75 without direct deposit.

Appalachian Community Federal Credit Union

Fresh Start Checking available in KY, TN, VA. Minimum opening deposit is $20. Monthly service fee of $10.

Bank of the Ozarks

Pathyway Checking available in AL, AR, CA, FL, GA, NC, NY, SC, TX. Minimum opening balance is $50. Monthly service fee of $10. The checking account is a non-interest bearing account.

Centennial Bank

Opportunity 100 Checking available in AL, AR, FL, NY. Minimum opening balance is $100.00. Monthly service fee with direct deposit $9.95 and $12.95 with no direct deposit.

City National Bank

Bounce Back Checking available in KY, OH, VA, WV. No minimum balance. Monthly service fee of $6.99 with direct deposit and $8.99 without direct deposit. First two non-sufficient funds fees waived.

CommonWealth One Federal Credit Union

Second chance banking available in DC, MD, VA. Must be opened in a branch office.

Corporate America Family Credit Union

Fresh Start Checking available in AZ, CA, CT, GA, IL, KS, NC, OH, PA, TX, VA. Keep a minimum balance of $100 in your Regular Share Account. Monthly service fee of $10.

Farmers and Merchants State Bank

Clean Start Checking available in IN, MI, OH. Ideal account for rebuilding or establishing credit. Minimum opening balance is $50.00. Monthly service fee of $7.95 with direct deposit and $9.95 without direct deposit.

Fifth Third Bank

Express Banking available in FL, GA, IL, IN, KY, MI, NC, OH, TN, WV. No credit score requirement. Discounted fees of up to 50% on select services based on account usage. No check writing or check deposits at ATMs.

GenFed Financial

Clean Start Checking available in IL, IN, OH. Must have 3 or fewer records with ChexSystem. Plus no outstanding items less than 1 year old. Outstanding balance total of less than $500.

HomeStreet Bank

Bank on Checking account available in AZ, CA, HI, ID, OR, UT, WA. Minimum opening deposit is $50. This is a free account with no minimum account balance required, no monthly service charges and no per check charges.

Hope Credit Union

Easy checking account available in AR, LA, MS, TN. Minimum opening deposit is $25. The monthly service fee of $9.95 can be waived with $200 minimum balance.

InTouch Credit Union

Fresh Start Checking is available in MI, NV, TN, TX, VA. Membership must be established with a $5 deposit into a savings account. Minimum opening deposit for checking account is $50 deposit.

Landmark Bank

Rebound Banking available in MO, OK, TX. Monthly service fee of $9.99. If you keep your checking account in good standing for a full year after opening, you’re eligible to switch to another checking account.

MainSource Bank

Fresh Start Checking available in IL, IN, KY, OH. Monthly service fee of $10.

Park Community Credit Union

Fresh Start Checking available in IN, KY. No minimum balance. Monthly service fee of $12 and a required direct deposit.

PNC Bank

Foundation Checking is not publically advertised but available in AL, DC, DE, FL, GA, IL, IN, KY, MD, MI, MO, NC, NJ, NY, OH, PA, SC, VA, WI, WV.

Premier Bank

Start Fresh Checking is available in DC, MD, VA, WV. Minimum opening balance is $50.00. Monthly service fee of $7.95 with direct deposit and $9.95 without direct deposit. After 18 months, customers in good standing may qualify for a more favorable checking account at Premier Bank.

Republic Bank

Checking Builder is available in FL, IN, KY, OH, TN. Minimum opening balance is $50. Monthly service fee of $12.95 will be reduced to $7.95 with direct deposit or, at least 20 monthly point-of-sale debit card transactions.

Staley Credit Union

Renew Checking is available in IL, IN, TN. Minimum opening balance is $50. Monthly maintenance fee of $7.00.

Union Financial Credit Union

Right Start Checking is available in AL, AR, AZ, CA, CO, IN, KY, MI, MS, NJ, NV, TN, TX, UT, VA, WV. Open with a $25 deposit and no minimum balance requirement. No monthly fees plus overdraft protection up to $250.

Webster Bank

Opportunity Checking is available in CT, NY, RI. Minimum opening balance is $50.00. Monthly service fee of $11.95 with direct deposit and $16.95 without direct deposit.

Woodforest National Bank

Second chance banking is available in AL, FL, GA, KY, IL, IN, LA, MD, MS, NC, NY, OH, PA, SC, TX, VA, WV. Minimum opening balance is $25.00. Monthly service fee of $9.95 with direct deposit and $11.95 without direct deposit. One-time account set up fee of $9.95.

Second chance banking options in 50 States

Alabama

Alabama Credit Union: On-Track Checking

Avadian Credit Union: e-Checking

Azalea City Credit Union: Opportunity Draft

Community Bank & Trust: Second Slice Checking

Family Security Credit Union: Give Me a Break Checking

First National Bank: Credit Builder

Guardian Credit Union: Fresh Start Checking

Gulf Winds Federal Credit Union: MyOpportunity Checking

United Bank: Gateway Checking

West Alabama Bank: Fresh Start Checking

Alaska

True North Federal Credit Union: True Options Checking

Arizona

Alhambra Credit Union: Basic Checking

Bank of Arizona: Opportunity Banking

Banner Federal Credit Union: Opportunity Checking

Canyon State Credit Union: Try Again Checking

MariSol Federal Credit Union: Basic Checking

Pima Federal Credit Union: Fresh Start Checking

Tucson Federal Credit Union: Second Chance Checking

Tucson Old Pueblo Credit Union: Mission Checking

Arkansas

Bank of Arkansas: Opportunity Banking Diamond Bank: Encore Checking Focus Bank: Fresh Start Checking Red River Credit Union: Fresh Start Checking River Valley Community Federal Credit Union: Fresh Start Checking

California

Alliance Federal Credit Union: Fresh Start Checking
Alta Vista Credit Union: Opportunity Checking
American United Federal Credit Union: FreshStart Checking
Befit Financial Federal Credit Union: Fresh Start Checking
E-Central Credit Union: E-Builder Checking
Foothill Credit Union: Rebound Checking
Kern Federal Credit Union: Fresh Start Checking
Los Angeles Federal Credit Union: Second Chance Checking
North County Credit Union: Fresh Start Checking
Premier America Credit Union: Fresh Start Checking
Priority One Credit Union: New Leaf Checking
University Credit Union: Fresh Start Checking
Ventura County Credit Union: Second Chance Checking
OneUnited Bank: Second Chance Checking

Colorado

Colorado State Bank and Trust: Opportunity Banking
Liberty Savings Bank: Clean Slate Checking
NuVista Federal Credit Union: The Last Chance Checking

Connecticut

Eastern Savings Bank: Restart Checking
Finex Credit Union: Re-Start Checking
Hartford Federal Credit Union: 2nd Chance Checking
Tobacco Valley Teachers Federal Credit Union: myChance Checking

Delaware

WSFS Bank: Fresh Start Checking

District of Columbia

CommonWealth One Federal Credit Union: Second Chance Checking

Florida

Alabama Credit Union: On-Track Checking
Axiom Bank: Opportunity Checking
CenterState Bank: Fresh Start Checking
Central Credit Union of Florida: Fresh Start Checking
City County Employees Credit Union: Fresh Start Checking
Community First Credit Union: Fresh Start Checking
Compass Financial Federal Credit Union: Restart Checking
First American Bank: Fresh Start Checking
First Florida Credit Union: Smart Track Checking
Gold Coast Federal Credit Union: Fresh Start Checking
Gulf Winds Federal Credit Union: MyOpportunity Checking
Jax Federal Credit Union: Fresh Start Checking
JetStream Federal Credit Union: Second Chance Checking
Liberty Savings Bank: Clean Slate Checking
McCoy Federal Credit Union: Fresh Start Checking
Members First Credit Union of Florida: Second Chance Checking
Okaloosa County Teachers Federal Credit Union: Fresh Start Checking
One South Bank: Opportunity Checking
OneUnited Bank: Second Chance Checking
Priority Credit Union: Restart Checking
San Antonio Citizens Federal Credit Union: Second Chance Checking
South Florida Federal Credit Union: Another Chance Checking
United Bank: Gateway Checking

Georgia

Community Bank & Trust: Second Slice Checking
Doco Credit Union: Fresh Start Checking
Excel Federal Credit Union: Fresh Start Checking
Georgia United Credit Union: Restart Checking
Georgia’s Own Credit Union: Resolution Checking
Health Center Credit Union: Fresh Start Checking
Members United Credit Union: Another Chance Checking
Peach State Federal Credit Union: Fresh Start Checking

Hawaii

There were no second chance banking accounts found in Hawaii, however, you can open an online second chance checking account at One United Bank.
The U2 E-Checking requires a minimum opening deposit of $100. Another option is an online spending account that can be used as a second chance checking account at Chime®.

Idaho

Latah Credit Union: Second Chance Checking

Illinois

Catholic & Community Credit Union: Rebound Checking
First American Bank: Fresh Start Checking
First Eagle Bank: Eagle Fresh Start Checking
First National Bank and Trust Company: Renew Checking
Marquette Bank: ReStart Checking
Prairieland Federal Credit Union: Not Your Normal Checking2

Indiana

Centra Credit Union: Opportunity Checking
Diamond Valley Federal Credit Union: Fresh Start Checking
Evansville Teachers Federal Credit Union: Opportunity Checking
Farmers & Merchants State Bank: Clean Start Checking
Heritage Federal Credit Union: 2nd Chance Checking
Horizon Bank: Fresh Start Checking
Interra Credit Union: Opportunity Checking
One Vision Federal Credit Union: Rising Star Checking
Park Community Credit Union: Fresh Start Checking
Regional Federal Credit Union: First Step Checking

Iowa

Collins Community Credit Union: Take2 Checking
Federation Bank: Fresh Start Checking
Greater Iowa Credit Union: Fresh Start Checking
North Iowa Community Credit Union: Fresh Start Debit

Kansas

Central National Bank: New Opportunity Checking
United Consumers Credit Union: Second Chance Checking

Kentucky

C-Plant Federal Credit Union: Second Chance Checking
The Cecilian Bank: Choice Opportunity Checking
Central Bank: Clean Start Checking
Evansville Teachers Federal Credit Union: Opportunity Checking
First United Bank and Trust Company: Fresh Start Checking
FNB Bank: Start Again Checking
Heritage Federal Credit Union: 2nd Chance Checking
Home Federal Bank: Square One Checking
Park Community Credit Union: Fresh Start Checking

Louisiana

Neighbors Federal Credit Union: Basic Checking
Pelican State Credit Union: Horizon Checking
Southwest Louisiana Credit Union: Fresh Start Checking

Maine

Five County Credit Union: 2nd Chance Checking

Maryland

Central Credit Union of Maryland: Renew Checking
Clear Mountain Bank: StartFresh Checking
Market USA Federal Credit Union: Fresh Start Checking
Security Plus Federal Credit Union: Revive Checking

Massachusetts

Alden Credit Union: No Boundaries Checking
Athol Credit Union: Fresh Start Checking
OneUnited Bank: Second Chance Checking
Washington Savings Bank: Online Rewards Checking

Michigan

Credit Union One: Basic Checking
Horizon Bank: Fresh Start Checking
Marshall Community Credit Union: Fresh Start Checking
Members First Credit Union: Fresh Start Checking
Michigan State University Federal Credit Union: Rebuild Checking

Minnesota

Minnesota Valley Federal Credit Union: Second Chance Checking
WESTconsin Credit Union: Foundations Checking

Mississippi

Citizens National Bank: Clean Slate Checking
Gulf Coast Community Credit Union: New Chance Checking
Magnolia Federal Credit Union: Opportunity Checking
MUNA Federal Credit Union: Fresh Start Checking

Missouri

Alliance Credit Union: FreshStart Checking
The Bank of Missouri: Select 2 Checking
Columbia Credit Union: Fresh Start Checking
Electro Savings Credit Union: Fresh Start Checking
First State Community Bank: New Opportunity Checking
Focus Bank: Fresh Start Checking
Health Care Family Credit Union: Fresh Start Checking
Mobank: Opportunity Banking
Montgomery Bank: Montgomery New Start Checking
St. Louis Community Credit Union: Second Chance Checking
Town & Country Bank: Opportunity Checking
United Consumers Credit Union: Second Chance Checking
United Credit Union: Restore Checking
Wood & Huston Bank: StartFresh Checking

Montana

Valley Federal Credit Union: Opportunity Checking

Nebraska

Central National Bank: New Opportunity Checking
Western Heritage Credit Union: Simple & Free Checking

Nevada

Clark County Credit Union: CheckAgain Checking
WestStar Credit Union: Fresh Start Checking

New Hampshire

There were no second chance banking accounts found in New Hampshire, however, you can open an online checking at Chime®.

New Jersey

Credit Union of New Jersey: Right Turn Checking
Jersey Shore Federal Credit Union: Fresh Start Checking
United Teletech Financial Federal Credit Union: Fresh Start Checking

New Mexico

Bank of Albuquerque: Opportunity Banking
Lea County State Bank: Opportunity Checking

New York

Alternatives Federal Credit Union: Fresh Start Checking
Centra Credit Union: Opportunity Checking
Financial Trust Federal Credit Union: 2nd Chance Checking
Fulton Savings Bank: New Opportunity Checking
Genesee Valley Federal Credit Union: Fresh Start Checking

North Carolina

Alliance Federal Credit Union: Fresh Start Checking
American Partners Federal Credit Union: EZ 4U Checking
Charlotte Metro Credit Union: Fresh Start Checking

North Dakota

There were no second chance banking accounts found in North Dakota, however, you can open an online checking at Chime®.

Ohio

Buckeye State Credit Union: Second Chance Checking
Eaton Family Credit Union, Inc.: 2nd Chance Checking
Farmers & Merchants State Bank: Clean Start Checking
Hopewell Federal Credit Union: Rebound Checking
Kemba Federal Credit Union: Fresh Start Checking
Members Trust Federal Credit Union: Trust and Alternative Checking
Sun Federal Credit Union
: Fresh Start Checking Superior Credit Union: Fresh Start Checking

Oklahoma

Allegiance Credit Union: Fresh Start Checking
Bank of Oklahoma: Opportunity Banking
Citizens Bank of Edmond: Fresh Start Checking
Oklahoma Educators Credit Union: Fresh Start Checking
TTCU Federal Credit Union: Fresh Start Checking
Weokie (Credit Union): Fresh Start Checking
Western Sun Federal Credit Union: Fresh Start Checking

Oregon

Point West Credit Union: Fresh Start Checking

Pennsylvania

Allegent Community Federal Credit Union: Fresh Start Checking
Sun Federal Credit Union: Fresh Start Checking
Utilities Employees Credit Union: Second Chance Checking
West Branch Valley Federal Credit Union: Back on Track Checking
WSFS Bank: Fresh Start Checking

Rhode Island

There were no second chance banking accounts found in Rhode Island, however, you can open an online checking at Chime®.

South Carolina

Caro Smart Financial Solutions: Rebound Checking
Carolina Trust Federal Credit Union: Encore Checking
HopeSouth Credit Union: Fresh Start Checking
Market USA Federal Credit Union: Fresh Start Checking
Peach State Federal Credit Union: Fresh Start Checking
Vital Federal Credit Union: Fresh Start Checking

South Dakota

There were no second chance banking accounts found in South Dakota, however, you can open an online checking at Chime®.

Tennessee

First National Bank: Credit Builder
Greater Eastern Credit Union: Fresh Start Checking
Holston Methodist Federal Credit Union: Second Chance Checking
Home Federal Bank: Square One Checking
Select Seven Credit Union: Second Chance Shardraft

Texas

Abilene Teachers Federal Credit Union: Restart Checking
Air Force Federal Credit Union: Fresh Start Checking
Allied Federal Credit Union: Fresh Start Checking
Associated Credit Union of Texas: 180 Checking
Bank of Texas: Opportunity Banking
Baptist Credit Union: Draft Builder Checking
Chocolate Bayou Credit Union: Clean Slate Checking
Diamond Bank: Encore Checking
First Service Credit Union: Fresh Start Checking
Houston Metropolitan Federal Credit Union: Freedom-2nd Chance Checking
Kelly Community Federal Credit Union: Smart Choice Checking
Las Colinas Federal Credit Union: 2nd Chance Checking
MemberSource Credit Union: Select Checking
Members Trust Federal Credit Union: Second Chance Checking
Memorial Credit Union: New Path Checking
Nascoga Federal Credit Union: Fresh Start Checking
Neigborhood Credit Union: Fresh Start Checking
North East Texas Credit Union: Fresh Start Checking
Peoples Bank: Second Chance Checking
Premier America Credit Union: Fresh Start Checking
Prestige Community Credit Union: Fresh Start Checking
Red River Credit Union: Fresh Start Checking
Rio Bank: Fresh Start Checking
Select Federal Credit Union: Fresh Start Checking
Southside Bank: Next Checking
Tarrant County’s Credit Union: Fresh Start Checking
United Heritage Credit Union: Choice Checking
Unity One Credit Union: Clean Start Checking
Velocity Credit Union: Access Checking

Utah

American United Federal Credit Union: FreshStart Checking
Cyprus Credit Union: Fresh Start Checking

Vermont

There were no second chance banking accounts found in Vermont, however, you can open an online checking at Chime®.

Virginia

Central Virginia Federal Credit Union: Fresh Start Checking
CommonWealth One Federal Credit Union: Second Chance Checking
Healthcare Systems Federal Credit Union: Renew Checking
Member One Federal Credit Union: Smart Choice Checking
PortAlliance Federal Credit Union: Smart Choice Checking

Washington

MountainCrest Credit Union: Fresh Start Checking

West Virginia

Clear Mountain Bank: StartFresh Checking
West Virginia Federal Credit Union: Fresh Start Checking

Wisconsin

Brewery Credit Union: Fresh Start Checking
Dane County Credit Union: Relationship Builder Checking
Educators Credit Union: Fresh Start Checking
First National Bank and Trust Company: Renew Checking
Schneider Community Credit Union: Fresh Start Checking
Tomahawk Community Bank: Fresh Start Checking
WESTconsin Credit Union: Foundations Checking

Wyoming

Greater Wyoming Federal Credit Union: Freshstart Checking
WyHy Federal Credit Union: Second Chance Checking
WYO Central Federal Credit Union: 2nd Chance Checking
Valley Federal Credit Union: Opportunity Checking

Rebuild your banking history with second chance banking

ChexSystems maintains negative banking history for 5 years while EWS, Telecheck, and credit bureaus keep negative information for 7 years. Mistakes happen. You deserve a second chance at banking to get a fresh start. The banking industry varies when it comes to second chance banking accounts. Second chance banking accounts may come with more limitations than standard checking accounts. Second chance banking accounts are specifically designed for people who have struggled with a checking account in the past but want to get back into banking. Some banks and credit unions offer second chance banking with limited or no check writing privileges while other financial institutions allow most features of a regular checking account but tack on a monthly fee. Another option for people denied a checking account is to find non ChexSystems banks that don't use ChexSystems to open checking accounts. Second chance banking might include pulling a ChexSystems report but the bank doesn't hold past mistakes against you.

Save time and money with second chance banking

The Center for Financial Services Innovation (CFSI) conducted a one-day simulation as to what unbanked people may encounter when trying to conduct basic financial transactions like cash a check, pay rent and utilities. The group included entrepreneurs, nonprofit employees, and banking executives. They found that a huge chunk of time was utilized waiting in lines at check-cashing stores to cash checks, load prepaid cards, purchase money orders, and complete money transfers.

In one encounter, the group “ended up waiting for nearly half an hour while the check cashing store decided it couldn’t cash one of the checks.” In addition to the time consumed the group found that conducting financial transactions at check-cashing stores and Western Union is costly. A $30 money transfer at Western Union cost $5.

Avoid negative banking habits

Once your new account is open, avoid habits that contribute to a negative banking history. With online banking tools, you can always pay attention to checking account balances, keep track of all transactions to avoid overdrafts, and monitor your bank accounts. Participation in a financial management workshop, often online for 60-90 minutes, might be required by some banks and credit unions prior to opening a second chance banking account. These workshops offer good tips on managing a checking account and avoiding actions that can get you in trouble.

Run from second and third-party checks

NEVER, EVER deposit a third-party personal check via ATM or mobile deposit. A 3rd-party check is when a friend or family member endorses a check over to you to cash or deposit. Banks typically don't like 3rd party checks because of the risk associated. If a bank accepts 3rd party checks, they may require both you and the original payee to sign the check in the presence of a teller. You may even want to be wary of a 2nd-party check from a friend or family member. A 2nd-party check is one written directly to you. Many consumers have innocently deposited a personal check from a friend or family member that ended up as a bounced check. Banks often see these types of transactions as fraud. And for a bank, fraud is similar to bank robbery. Being reported by a bank for fraud is one of the WORST notations on ChexSystems and Early Warning Services, even if it was unintended.

Second Chance Checking has Pros and Cons

Pros of a second chance checking account:

  • Restore a good standing banking history. A second chance checking account helps you rebuild your banking history, but you still need to practice good money management.
  • Avoid excessive financial fees. Prepaid debit cards, money orders, cashier's checks, and check cashing services have one thing in common, FEES! Some Second chance checking accounts may have a monthly service but it will be insignificant compared to the above-mentioned alternative banking services.
  • Reestablish your banking relationship. A good banking relationship can open opportunties for future financial products like a mortgage, car, business or student loan at competitive interest rates. Opening a second chance account is the first step in rebuilding your relationship with the bank.

Cons of a second chance checking account:

  • Monthly maintenance fees. Many second chance checking accounts come with monthly maintenance fees. Over time, these can add up. While you might be able to avoid monthly service fees in some cases, most second chance banks will only waive these charges if you maintain a certain balance or set up a specific number of direct deposits.
  • Lack of overdraft protection. Most second chance checking account do not offer overdraft protection. Chime® is one of the rare banks that will spot you up to $100 on debit card purchases with no overdraft fees.
  • Won't rebuild credit. Banks do not report good banking habits to the credit bureaus so while a second chance checking account will do wonders for establishing a banking relationship, the account will not do anything to help repair bad credit. If you have bad credit, you'll need to take separate steps to improve it.

Challenge Mistakes with ChexSystems or EWS

Just like creditors report inaccurate information to credit bureaus, banks and credit unions make mistakes too. Challenge errors and inaccurate information reported to ChexSystems and EWS if you think you should have a clean record. Order your ChexSystems and EWS report for free, once every 12 months. If you’ve been denied a bank account within the last 60-days you are entitled to a free report. Otherwise, there may be a fee.

Final thoughts

When a shaky banking record prevents you from traditional banking, you can't go wrong with banks that offer second chance checking accounts, even if a monthly fee is required. Take comfort in knowing there are tools to help you restore your banking privileges and, if you have to pay a monthly fee, it will not last forever. Start enjoying all the benefits and conveniences of banking again.

Upgrade Disclaimers

1 Rewards Checking Plus customers who set-up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.
2 There are no overdraft fees or annual fees associated with Rewards Checking Plus accounts. Rewards Checking Plus charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. For Active Accounts, Upgrade will rebate ATM fees charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month on a Rewards Checking Plus account, the account must be an Active Account in the prior calendar month. See the Active Account page for more information. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for 60 days after account opening regardless of account user status. Some limitations apply. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.
3 Early direct deposit requires set up of recurring electronic direct deposit from your employer, payroll, or benefits provider and is limited to direct deposits under $5000. Early access to direct deposit funds depends on the timing in which we receive notice of impending direct deposit, which is generally up to two days before the scheduled deposit date.
4 The 1.5% Annual Percentage Yield (APY) for the Performance Savings account is effective as of June 1, 2023. The APY for the Performance Savings account is variable and may change at any time. Active Accounts qualify for 5.07% APY with monthly $1000 direct deposit. The APY for Active Accounts is effective as of September 1, 2023, is variable, and may change at any time. Please refer to the applicable Cross River Bank Performance Savings Deposit Account Agreement and Truth in Savings Disclosure. To earn APY, you must open and fund a Performance Savings account. Rewards Checking Plus accounts do not earn APY.

Best online savings rates

The national savings rate is 0.46% APY. This online bank pays way more.

CIT Bank

Platinum Savings
5.05% APY
/Month
Minimum $5,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

CIT Bank

Savings Connect
4.65% APY
/Month
Minimum $100 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

CIT Bank

6-Month CD
5.00% APY
/Month
Minimum $1,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured
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