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If a bank previously closed your account due to a negative bank account history, you might not be able to open a bank account at some financial institutions.
Select financial institutions, however, provide second chance banking so you still have access to financial services regardless of what happened in your past. We've reviewed over a dozen institutions and here are our picks for the best checking accounts for people who have a negative banking history.
Best Second Chance Bank Accounts
Capital One 360 Checking - Product Name Only Chime Checking Account - Product Name Only andChime Savings Account - Product Name Only Varo Checking Account - Product Name Only andVaro Savings Account - Product Name Only SoFi Checking and Savings - Product Name Only Experian Smart Money - Product Name Only Dora Financial Everyday Checking Account - Product Name Only Dave Spending Account - Product Name Only The First Bank First Aid Checking Account - Product Name Only
All of the financial institutions on our list are protected by FDIC or NCUA insurance. Although First Republic Bank was recently shut down, bear in mind your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best Second Chance Bank Accounts
Second Chance Bank Accounts: Frequently Asked Questions
What is a second chance bank account?
A second chance bank account is a unique type of bank account that doesn't review a person's past banking history.
Which is the best second chance bank account?
The best second chance bank account for you will depend on your preferences and where you live. Second chance bank accounts are only available at some banks and credit unions. If you'd like to open a second chance bank account with a brick-and-mortar bank, you might consider looking at regional banks, CDFIs, or minority depository institutions. If you prefer bank accounts with budgeting tools or strong mobile and online banking, some online banking platforms have second chance bank accounts.
How does a second chance bank account work?
Online institutions usually offer second chance bank accounts that don't allow you to overdraw from your bank account. Second chance bank accounts at brick-and-mortar banks may have limited banking features to avoid potential bank fees. For example, some accounts will not come with checks or debit cards, so they're a bit easier to manage.
What banks do not go through ChexSystems?
Chime, Varo, Capital One, and SoFi do not check your banking history through ChexSystems when you apply for an account.
Does Bank of America do second chance accounts?
Yes, you can open a second chance account through Bank of America called the
Second Chance Bank Account Reviews
Capital One 360 Checking
Capital One 360 doesn't use ChexSystems to assess your risk as a consumer when opening a bank account.
At Capital One, you'll also be able to open a high-yield savings account and CDs without having to worry about ChexSystems.
Capital One 360 Checking Accounts automatically decline overdrafts if you don't choose an overdraft service. The bank also charges a $2 fee if you use an out-of-network ATM.
Chime Checking and Savings Account
The
Chime also stands out because it doesn't charge monthly service fees, and you may open an online account from anywhere in the US.
Before you open a savings account, you're required to open a checking account. This is also an online-only account, so you'll have to be comfortable with online banking.
Varo Bank and Savings Account
The
Varo doesn't use ChexSystems to review your bank account history. You also don't need to worry about a credit check.
At Varo, you could also get a high-yield savings account with a competitive interest rate. The
To qualify for the the Varo Savings Account, you must open the Varo Bank Account first. Varo is also an online-only financial institution so it doesn't have physical branches.
SoFi Checking and Savings
SoFi Checking and Savings doesn't require a review of ChexSystems. You also might like this account if you're comfortable maintaining your checking and savings in one account.
SoFi is offering a cash bonus of up to
The account works best if you set up a direct deposit. That way, you'll qualify for the cash bonus and the highest-tier interest rate on savings account balances.
Experian Smart Money
The account also offers early direct deposits and a
You might prefer one of our other top picks if you want overdraft protection. If you make a transaction that would result in a negative account balance, Experian will deny the purchase.
Dora Financial Everyday Checking Account
The
Dora Financial may also stand out if you primarily speak Spanish. The platform's mobile app is available in English and Spanish.
Customer support may be limited since it's only available through the platform's mobile app or email. If you prefer telephone customer support, you might consider other accounts.
Dave Spending Account
You might like the
Dave is a mobile fintech platform with a bank account that doesn't require a credit check.
There's a
The First Bank First Step Checking
First Step Checking might be ideal if you'd like to open an account with a brick-and-mortar bank. The First Bank is one of the largest community development financial institutions (CDFIs) to offer a second chance bank account in multiple states.
Compared to other second chance bank accounts at brick-and-mortar financial institutions, it has a low monthly service fee.
The First Bank only serves residents in Alabama, Georgia, Mississippi, Florida, and Louisiana. The account also doesn't include checks. You'll need to upgrade to a traditional checking account after six months to have access to check writing.
Other Second Chance Bank Accounts That Didn't Make the Cut
- Bank of America: The
Bank of America Advantage SafeBalance Banking® Account - Product Name Only doesn't use ChexSystems, but you may not qualify to waive the $4.95 monthly fee. - Carver State Bank: Carver State Bank is a Black-owned bank with a second chance checking account and a first-time checking account. However, the bank only serves residents in Savannah, Georgia.
- Citizens National Bank: Citizens National Bank is a community development financial institution. The bank's CleanSlate Program lets you open a second chance checking and savings account, but you're eligible only if you live in Mississippi.
- Commonwealth National Bank: This Black-owned bank might be a good option if you live in Mobile, Alabama. There's an $8.95 monthly service fee on the second chance checking account that can't be waived, though.
- First Independence Bank: First Independence Bank is a Black-owned bank in Michigan. The bank's second chance checking account is only accessible if you live in Detroit and Clinton Township.
- First Imperial Credit Union: The Hispanic American-led credit union's Opportunity Checking Account is available to anyone who struggles to open a traditional checking account. You'll be eligible for the account if you or a family member live in specific areas in Southern California.
- GECU: GECU is a Hispanic American-led credit union with 12 branches in El Paso, Texas. You may like the bank's second chance checking account if you'd like an account with a low minimum opening deposit, but bear in mind the second chance checking account has a $15 monthly service fee.
- Guadalupe Credit Union: This Hispanic American-led bank might be worthwhile if you want to open a second chance checking account with zero minimum balance requirements. To qualify for membership at Guadalupe Credit Union, you or a family member must live in a specific New Mexico county.
- Hope Credit Union: Hope Credit Union is a Black-owned credit union, and it might be worth looking into if you live in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee. There's a $9.95 monthly service fee with the bank's second chance checking account, though.
- OneUnited Bank: OneUnited Bank is the largest Black-owned bank in the US and it offers online accounts. The bank's second chance checking account has a low minimum opening deposit, but there's a monthly service fee of over $5 if you don't meet certain requirements.
- Rio Bank: Rio Bank is a Hispanic American-led bank in Texas. It only serves a few cities in Texas, while some of our top picks are more available in more areas.
- River City Federal Credit Union: This Hispanic American-led credit union could be a decent choice if you'd like to open a second chance checking account with a debit card. To qualify for the credit union, you must live, work, or go to school in Bexar County, Texas.
- St. Louis Community Credit Union: St. Louis Community Credit Union is a Black-led financial institution with 17 branches in Missouri. You might find the bank's second chance checking account appealing if you'd like a bank account with checks and a debit card. To open an account, you must meet the bank's membership requirements.
- Sun Community Federal Credit Union: You might like Sun Community Credit Union if you'd like to open a second chance bank account and live, work, or volunteer in Imperial or Coachella Valley, California. If you don't live in the area, you can't become a member of the credit union.
- Transit Employees Federal Credit Union: TEFCU is a minority-led credit union that might be worth exploring if you live in Virginia and Washington, DC. You'll need to meet the credit union's membership requirements to open a second chance bank account, though.
- Wells Fargo: Wells Fargo has the most branches in most US states, but its trustworthiness rating is lower than some of our top picks. The bank's second chance checking account also requires a $5 monthly service fee.
- Woodforest: Woodforest has 17 states on the East Coast. The bank's second chance checking account has a low minimum opening deposit, but there's a $9.95 to $11.95 monthly service fee, depending on whether you receive a monthly direct deposit or not.
Bank Trustworthiness and BBB Ratings
The Better Business Bureau assesses businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices.
Below are the BBB ratings of our favorite banking options. Dora Financial hasn't been rated by the BBB, yet. Hence, we used the BBB rating of USAlliance Financial for Dora Financial since the
| Institution | BBB rating |
| Capital One 360 | A+ |
| Chime | B+ |
| Varo | A- |
| SoFi | A+ |
| Experian | C+ |
| Dora Financial | D- (grade for USALLIANCE Financial, partner bank) |
| Dave | B |
| The First Bank | A+ |
Varo received an A- rating and Dave has a B rating because the two companies have received a high volume of customer complaints on the BBB website.
Chime received an B+ rating because it has received a high volume of complaints on the BBB website and taken a long time to respond.
USAlliance Financial received a D- rating because it has failed to respond to six customer complaints.
Experian received a C+ rating from BBB because it has received a high volume of customer complaints, had government actions taken against the company, and has taken a long time to respond to customer complaints.
Chime and Experian have been involved in a recent public controversies
In 2021, Chime was involved in a settlement with the California Department of Financial Protection and Innovation. The platform used the URL "Chimebank.com" and the words "bank" and "banking" but Chime isn't licensed as a bank. Chime is a banking platform, and is insured by a bank.
In November 2022, Experian was required to pay a total of $13.67 million regarding two settlements over data breaches that occurred in 2012 and 2015. The 2015 breach occurred when an authorized person obtained access to personal information in the Experian network, primarily affecting people who applied for T-Mobile services between September 2013 and September 2015. The 2012 breach involved identity theft.
Why You Should Trust Us: Expert Advice on Choosing the Best Bank Account
To learn more about what makes a good bank or credit union and how to choose the best fit, four experts weighed in:
Insider
- Tania Brown, certified financial planner at SaverLife
- Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life"
- Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
Some second chance bank accounts may not have checks or a debit card, so you can avoid overdrawing from an account. Also check to see if the bank lets you upgrade to a regular bank account for maintaining a positive balance on a second chance bank account for a certain period of time.
Other than that, the things you should look for in a second-chance bank account are about the same as any other bank account:
- Are you clear on the fees, and whether you can waive them?
- Are you confident in bank security, and how accessible your money is in-person or online?
- Is the bank FDIC-insured?
- How easy is it to get ahold of customer service, and when are they available?
- How easy is it to transfer money in and out of your account?
Methodology: How We Chose the Best Second Chance Bank Accounts
At Personal Finance Insider, our goal is to create useful content that helps you make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.
We research extensively to make sure you know the standout features and limitations of a financial institution.
First, we researched to find financial institutions that offered second chance bank accounts. We looked at our Hispanic American-owned banks and credit unions state guide, our Black-owned banks and credit unions state guide, best banks of 2023 guide, and CDFI reviews to compile a list of institutions to consider.
Then, we reviewed second chance bank accounts to find the most-well rounded banking options. Our top picks have low minimum opening deposits and low monthly services fees. Several of our favorite accounts can be easily opened from anywhere in the US.