So your ChexSystems report isn‘t looking great? Or maybe you‘ve struggled with overdraft fees in the past? I get it – these things happen. But don‘t worry, having negatives on your banking history doesn‘t need to prevent you from accessing checking accounts or rebuilding your finances.
There are actually plenty of banks now that offer second chance checking without ChexSystems. These provide that opportunity to demonstrate you‘ve learned from any past financial mistakes. Paired with useful tools, you can restart fresh and establish solid money management habits.
In this guide, we’ll break down the top 20 second chance and non-ChexSystems banks to open new accounts with. I‘ll also give you tips for not only getting approved, but also setting yourself up for financial success long-term.
What Exactly is ChexSystems?
First, let‘s make sure you understand what ChexSystems is and how most banks use it during account applications.
ChexSystems is considered a specialty consumer reporting agency that collects your banking history data. They compile this information into a report that assigns you a risk score for any new checking or savings account applications.
According to 2021 CFPB complaint data, banks pull a ChexSystems report on potential customers over 80% of the time.
These reports detail the past 5 years of your activity, including:
- Suspected fraud
- Unpaid fees and overdrafts
- Previous closed accounts
- Outstanding negative balances
The risk score ChexSystems assigns ranges between 100 and 899. The higher the number, the less of a risk you look on paper. Generally, anything below 600 is going to cause most traditional banks to deny your application.
And if you have any outstanding debts still owed to banks, even non-ChexSystems banks may deny you until those have been paid.
So that‘s why second chance banking exists – to give people an opportunity to rebuild banking trust despite previous mistakes.
Top 20 Second Chance Banks for Bad Credit
The good news is that you still have plenty of bank options even with bad credit or ChexSystems reports. Some of the best include large banks now offering second chance programs in addition to online-only ones.
Here’s a complete list of 20 well-known banks providing second chance checking and savings without ChexSystems:
Chime
Chime focuses on no hidden fees, early paycheck access, and seamless mobile banking. You also have access to over 60,000 fee-free AllPoint ATMs.
Key Perks
- Get paid up to 2 days early
- No minimum balances
- No monthly fees
Requirements
- No credit check
- $0 minimum opening deposit
Varo
Varo not only skips ChexSystems reports, but also doesn‘t rely on credit checks for approvals. Their goal is helping establish healthy financial habits.
Key Perks
- Up to 2 days faster direct deposit
- High yield savings account
- No monthly fees or minimums
Requirements
- No credit checks
- No ChexSystems for approval
Current
Backed by a major FDIC-insured bank, Current focuses on helping members maximize earnings. You receive tools like getting paid two days faster and budgeting automations.
Key Perks
- Early direct deposit
- Teen banking options
- Over 55,000+ free ATMs
Requirements
- No credit check
- No ChexSystems reliance
GO2bank
GO2bank provides second chance checking opportunities to those needing a fresh start. Perks include a free debit card, over 1,800 free ATMs, and cashback rewards.
Key Perks
- Online and mobile banking access
- Debit card and ATM access
- Cashback rewards on purchases
Requirements
- No credit check needed
- Second chance options
Netspend
Netspend offers prepaid cards and accompanying mobile apps to stay on top of accounts. It‘s also one of the largest check cashing services available nationwide.
Key Perks
- Prepaid card options
- Instant check cashing
- Mobile app and optional savings
Requirements
- No credit check
Axos
Axos Bank is an online bank that makes it easy to qualify for checking and savings accounts. You also receive opportunities to earn cashback rewards on purchases.
Key Perks
- Rewards checking
- Unlimited reimbursem*nt on ATM fees
- High yield savings
Requirements
- Direct deposit needed
TD Bank
TD Bank offers accessible checking accounts, including an Essential one with no monthly fees. You also receive complimentary ATM access.
Bank of America
As one of the big traditional banks, Bank of America now offers second chance checking. Having qualifying direct deposits helps avoid any monthly fees.
Key Perks
- Large ATM and branch network
- Mobile and online banking
Requirements
- $100 minimum opening deposit
Regions
Regions Next Step Checking option gives those new or rebuilding credit an opportunity. You get warnings before any overdraft possibility fees.
PNC
PNC has one of the top reputations for assisting those needing second chance banking accounts. While they may check ChexSystems, you can still qualify for debit card access.
Wells Fargo
Wells Fargo offers a basic checking account that provides debit card access. It also lets you easily track spending on the go with account alerts.
Chase
As the biggest bank in the U.S., even Chase now provides a second chance program called Chase Premier Plus. It provides the opportunity to open an account and work towards graduation.
U.S. Bank
No matter your history, U.S. Bank‘s Advantage Plus Checking provides debit card purchase rewards. It also offers ways to avoid the monthly service fees.
Aspiration
With a focus on ethical services, Aspiration provides cashback rewards for debit purchases. Qualifying deposits help avoid monthly fees.
Marcus by Goldman Sachs
The Marcus high-yield savings account not only has competitive rates but also no fees. This makes it a flexible online option for beginner savers.
OneUnited Bank
OneUnited Bank emphasizes empowering minority communities with fair financial services. Second chance options provide checking, savings, and financial tips.
First Citizens Bank
First Citizens Bank offers possibilities like Value Checking which has no monthly fees. Having direct deposits waives any requirements too.
First National Bank
First National Bank understands past financial blemishes and offers the Elements Checking account to rebuild your banking relationship.
1st Source Bank
1st Source Bank provides Essential Checking as an online second chance option. It has features like a debit card, mobile deposits, and unlimited transactions.
Regions Bank
The Regions Explore Checking option gives those needing a second chance features like online banking and debit card access to get started.
Simmons Bank
Simmons Bank provides a chance to open checking with Qualified Overdraft Protection. This avoids risky overage fees as balances are monitored.
Webster Bank
Webster Bank offers basics needed to rebound like a low opening deposit and debit card access. You can upgrade features by adding direct deposits.
BMO Harris Bank
BMO Harris now provides the Smart Money Account designed to help consumers rebuild checking histories responsibly.
What Should I Do Once Approved?
First, congrats on getting approved for a second chance account! This is an important step towards demonstrating financial responsibility.
But getting approved is just part one. The real goal is learning positive habits that set you up for current and future money management success.
Here are a few smart tips to follow once your new checking account is open:
Set Up Direct Deposit
The easiest way to fund accounts responsibly is by direct deposit. This automated process on paydays avoids cash handling risks. Most banks offer bonuses too for qualifying check amounts which offset fees.
Avoid Debit Overuse
Debit cards provide easy access to accounts, but can enable overspending habits quickly. Limit use to essential needs and do the majority of spending tracking through online banking.
Access Budgeting Tools
Related to spending awareness, utilize platforms like online banking to categorize expenses. Building daily budgets aligns usage to income and prevents overdrafts.
Check Balances Often
Over 80% of monthly service and overdraft fees result from consumers losing balances awareness. Quick daily logins avoids surprises. Some banks also provide alerts.
Build an Emergency Fund
As balances grow through better saving habits, build towards an emergency fund equal to 3-6 months of expenses. This prevents desperate overdraft situations later if faced with income loss.
Establishing behaviors like these early creates positive patterns that give you financial confidence. Paired with helpful bank technology, you can leverage second chance accounts as launching pads for restoring credit access later.
How to Graduate to Better Checking and Savings Accounts
A common question on second chance checking is what it takes to access more benefits later. The graduated path back to premium accounts access depends on maintaining responsible activity over time.
Here is what banks look for when evaluating your checking relationship every 6-12 months:
- Low overdraft occurrences
- Consistent deposits
- Growing balances
- On-time payments history
Meeting these benchmarks demonstrates you‘ve learned from any previous banking issues and now handle money wisely. This gives banks confidence in "graduating" your access to traditional checking benefits like:
- Higher daily limits
- Rewards programs
- Premium interest rates
- Personal lending products
For example, major banks like Chase now even offer graduated programs. The Chase Premier Plus Checking provides account evaluations every 90 days for 12 months.
As activity meets ability-to-pay standards, they upgrade your features incrementally. These include higher balance limits, full mobile access, and additional account options.
Ultimately, the path back from second chance banking to mainstream starts with your everyday account habits. Taking advantage of tools that minimize risky behavior rebuilds crucial trust needed for greater access later. Stay patient and focused on establishing good financial patterns first.
Which Accounts Help Rebuild Credit Faster?
Now for those wanting to take rebuilding a step further, there are a couple second chance checking features that can assist credit management too.
Having both positive banking activity and credit accounts helps demonstrate full financial responsibility sooner.
Here are two options to consider that provide additional credit perks:
1. Secured Credit Cards
Once you’ve demonstrated reliable checking management for 2-3 months, applying for secured credit cards becomes easier.
These require security deposits to access starter limits and report to bureaus like traditional credit cards. Making small purchases and repaying promptly helps establish positive payment histories.
Ask any second chance checking bank you’re working with about their secured card offerings.
2. Credit Building Accounts
Some banks now offer specialty checking accounts designed specifically to build credit through everyday usage habits.
For example, Experian Boost handles unlinking debit card purchases from reports automatically. Extra debit offers tailored reporting insights on monthly purchases too.
Just remember, no magic bullet launches credit scores overnight. But consistent responsible habits accumulate over time to earn back trust and greater access.
Tips to Manage Credit and Finances Responsibly
Learning from any prior banking or credit mistakes is so valuable when it comes to making future wise money choices. I want to leave you with a few best practice tips for long-term financial success:
Monitor Credit Reports
Thanks to federal law, you can access your three major credit reports from Experian, Equifax, and Transunion once annually at no cost. Spread these requests out every four months to monitor changes year-round.
Pay Down Debts
Carrying revolving debt month to month leads to costly interest charges and lowered credit scores over time. Knock down lingering balances aggressively using second chance accounts.
Avoid Cash Advances
From credit cards or open lines of credit, cash advances seem like quick funding in desperate times. But steep fees paired with sky-high interest accumulates rapidly. Find other options.
Build Savings
As account balances grow through better saving habits, build towards at least an emergency fund equal to 3-6 months of living expenses. This prevents desperate overdraft situations later if faced with income loss.
Create Alerts
All banks discussed here provide custom alerts to notify you of important account activity notices. Use these to stay on top of balances, deposits, fees and other updates.
Check Rates Frequently
As positive history develops over 6-12 months, check back on financial products that may approve you now with better terms. This includes everything from checking accounts with rewards to loans with lower interest rates.
I hope reviewing both second chance checking options along with ways to graduate access over time provides a helpful blueprint. Rebounding from prior mistakes happens – now you‘re empowered to restart fresh and rebuild smarter money habits.
You’ve got this! It just takes patience while demonstrating responsible everyday behaviors consistently over time. I’m wishing you major success. Your financial future is bright and full of potential!
