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Banking Checking Accounts

What Is a Second-Chance Bank Account + Where Can You Find One?

Second-chance bank accounts, which are typically checking accounts, don't require spotless ChexSystems reports or credit checks. This is what makes them easier to qualify for than traditional bank accounts and ideal if you're looking for a second chance.

Danielle Letenyei
By Danielle Letenyei
Melinda Sineriz, ABFP™
Edited by Melinda Sineriz, ABFP™
Updated Sept. 5, 2025
Fact check checkmark icon Fact checked

If you've struggled financially, and those struggles have impacted your banking and credit history, some banks may refuse to let you open an account with them.

It can be difficult to qualify for a typical checking account when your banking history turns up problems with past checking accounts, like repeated overdrafts or a history of involuntary closures.

If this is the case for you, your best option is to find a second-chance bank account.

What is a second-chance bank account?

To understand what a second-chance bank account is, it helps to first understand how most bank accounts review applications.

Second-chance banking vs. traditional banking

Generally, when you apply for a new bank account, such as a checking account, the institution or company you're applying with will review your ChexSystems history.

ChexSystems is a reporting agency that collects data about consumers' banking histories for the purposes of assessing risk. Your ChexSystems report specifically includes negative items in your history, such as:

  • Repeated overdrafts or negative balances
  • Times your account was closed by a bank
  • Returned items or bounced checks
  • Denied account applications
  • Fraudulent activity

It also pulls together information that, on its own, isn't necessarily negative, like bank accounts you've recently applied for or opened and times you've ordered checks. But as a rule, the more banking problems you've had, the longer and more detailed your ChexSystems report will be.

Second-chance bank accounts often have less strict requirements to open than other bank accounts, and they're usually more forgiving when checking ChexSystems reports (if they use these at all), account issues that show up in your banking history, and the like. In other words, they're specifically designed for people who can't qualify for a regular checking account.

ChexSystems vs. credit reports

Note that ChexSystems reports and credit reports have nothing to do with each other. Banks and financial institutions don't always look at your credit score and credit history when reviewing your applications for new bank accounts, just as credit card issuers won't look at your banking history when reviewing applications for new credit cards.

Infographic comparing and contasting credit reports and ChexSystems reports to explain whether your credit impacts your ability to open a bank account

How to know when you need second-chance banking

Maybe you already know what's in your ChexSystems report because you've looked at it yourself or had it cited as the reason you've been denied for a new checking account.

But if you don't, here are some signs that you might benefit from second-chance banking:

  • You've overdrafted your bank account(s) many times in the past, incurring overdraft and NSF fees more than once.
  • Your bank account balance is regularly negative, and you've experienced repercussions from this, like bounced checks and denied transactions.
  • You've tried to apply for new checking or other bank accounts and have been denied.

How to know you've found a second-chance checking account

Not all bank accounts that are more likely to give you a second chance advertise themselves as "second-chance bank accounts." Many do, because let's face it: Being upfront about flexible requirements is a good way to get more customers.

But sometimes, it's not obvious when you've stumbled across a great second-chance bank account.

No ChexSystems

If a bank account states that it won't consider your ChexSystems report at all when you apply for an account, there's a very good chance it's a second-chance bank account.

Editor's note
Just because a bank or company doesn't use ChexSystems reports to review your banking history doesn't mean that it won't review your banking history. Other reports exist for providing this information, including Early Warning Services (a popular alternative used by Capital One, Chase, Wells Fargo, Bank of America, and more). Still, not using ChexSystems is likely to mean you'll have an easier time qualifying if your ChexSystems report could cause problems for you.

No or low minimum balance or deposit requirements

Many of the best second-chance bank accounts make it easy to open an account not just because they have fewer or less strict requirements to qualify for, but also because they don't require a lot of money upfront to open.

While not all checking accounts with no minimums are second-chance checking accounts, this benefit could be a clue that you're working with a less strict account in general.

Overdraft protection

If you consider the fact that many people who need a second chance with banking are in that position because they've had issues with overdrawing their balances, it makes sense that this perk is often tied to second-chance banking.

When you see robust overdraft protection services, which can include everything from denying all transactions that would cause a negative balance outright to failsafe solutions like fee-free overdraft coverage limits, wherein a bank or company temporarily covers your transactions for you when you're approaching a negative balance, you could be looking at a second-chance bank account.

Best second-chance bank accounts compared

Now that you have a good idea of what a second-chance bank account is and the benefits of choosing this type of account, here are some of the best second-chance banking options we recommend.

Best for Monthly maintenance fee Minimum opening deposit
SoFi Checking and Savings
SoFi Checking and Savings 		High-yield checking and savings accounts $01 $0
Chime®
Chime Checking2		 Automatic savings3 $04 $0
Varo
Varo Bank Account		 Rebuilding credit $0 $0
GO2bank
Go2bank Account		 Overdraft protection $5 without direct deposit $0
Wells Fargo Clear Access Checking
Wells Fargo Clear Access Checking		 Branch access $5 (waived for customers aged 13-24) $25
CapitalOne 360 Checking
Capital One 360 Checking		 Traditional checking account $0 $0

Tip
You can find many second-chance bank accounts with online banks and financial technology companies like these, but you may want to check out local banks and credit unions near you as well.

SoFi Checking and Savings

SoFi Checking and Savings
Financebuzz awards badge

2025 award winner Best Checking and Savings Combo

5.0
info
SoFi Checking and Savings
Earn Up to $300 When You Set Up Direct Deposit
Limited-Time Offer: Earn up to a $300 bonus and up to 4.50% APY on Savings (3.80% APY5with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.6 FDIC Insured.7
Learn More

Pros
  • No monthly fees1

  • No minimum deposit or balance requirements

Cons
  • Requires direct deposit or deposits of at least $5,000 every 30 days for high APY
  • No physical branches

With SoFi®, customers with direct deposit can earn up to 3.80% APY on savings and 0.50% APY on checking, which is considerably higher than the national standard. Plus, they can do both in one single account.

This makes SoFi® Checking and Savings the best second-chance checking account.

SoFi® is also a good option for second-chance banking because it doesn't consider your ChexSystems report as a requirement to open an account.

SoFi is a Member, FDIC. 7

Visit SoFi®  |   Read our full SoFi Checking and Savings review

Chime Checking

Chime®
Financebuzz awards badge

2025 award winner Best for Bad or No Credit

4.6
info
Chime®
Chime® Checking2 - No Monthly Fees4 + Get paid up to 2 days early with direct deposit8
Checking Account. No minimum balance. FDIC Insured through The Bank Corp Bank, N.A. or Stride Bank, N.A.
Open Account

Pros
  • No monthly fees4
  • No minimum deposit or balance requirements
  • No fees for overdrafts, transfers, or foreign transactions
Cons
  • Limited to opening only one account
  • There are no physical branches, only accessible via a mobile app

Chime® is not a bank but a financial technology company. It's perfect for you if you need a second chance with banking because Chime doesn't look at your credit history or ChexSystems report when you apply for an account. There's no minimum balance requirement to open a Chime Checking account, and the company charges very few fees otherwise.

If you have difficulty saving money, Chime's Round Ups feature helps you save automatically on everything you pay for with your Chime debit card. Every transaction is rounded to the nearest dollar, and the extra money is automatically transferred to your Chime savings account.910

Chime is FDIC insured through its partner banks, The Bancorp Bank, N.A. and Stride Bank, N.A.

Visit Chime   |   Read our full Chime review

Varo Bank Account

Pros
  • No monthly fees
  • No minimum deposit or balance requirements
  • High 5.00% (as of 04/25/25) APY on savings accounts with direct deposit
Cons
  • Direct deposit is required for high APY on savings
  • 5.00% (as of 04/25/25) APY earnings capped at $5,000

Varo Bank Accounts are known for being ideal for those new to banking and working on building better financial habits, and the online bank provides features and services to help you work on your credit, too. Varo lets you open a bank account without considering your credit history or ChexSystems report.

If you set up a direct deposit of at least $1,000 per month, you can earn 5.00% (as of 04/25/25) APY on up to $5,000 with a Varo high-yield savings account, provided that your Varo accounts end each month with a positive balance.

Varo is FDIC insured.

Read our full Varo review

Go2bank Account

Pros
  • No minimum balance or balance requirements
  • Provides up to $200 in overdraft protection11
Cons
  • $5 monthly fee without direct deposit
  • Charges fees up to $4.95 for cash deposits

One of the most attractive things about the Go2bank bank account is its overdraft protection coverage, which at $200, is higher than you'll find at other banks. However, make sure you read the fine print.

Like the other second-chance bank accounts on this list, Go2bank doesn't require a ChexSystems report or credit check. Go2bank's high-yield savings accounts earn 4.50% on up to $5,000 in savings, which is very competitive.

A significant downside to Go2bank is that it has a lot of fees you don't find at other banks, including a $5 monthly fee, a $3 fee for out-of-network ATM withdrawals, and a $15 fee for not covering overdraft balances within 24 hours.

Go2bank is FDIC insured through Green Dot Bank.

Read our full Go2bank review

Wells Fargo Clear Access Checking

Pros
  • No daily minimum balance is required
  • Thousands of branches
  • Good account for teens and college students
Cons
  • $25 is required to open an account
  • $5 monthly service fee (unless you meet waiver requirements)
  • Overdraft protection is not available

We like Wells Fargo's Clear Access Checking account because it's one of the only ones at a brick-and-mortar bank. One downside, though, is its $5 monthly service fee, but it's waived if you're between 13 and 24 or have a Wells Fargo Campus ATM Card or Campus Debit Card linked.

Although Wells Fargo promotes that the Clear Access Checking account doesn't have overdraft fees, if you read the fine print, you'll find the reason is that overdraft protection isn't available on the account. Overdraft transactions typically aren't authorized on the account, but Wells Fargo won't charge a fee for rejecting those transactions.

Wells Fargo is FDIC insured.

Read our full Wells Fargo banking review

Capital One 360 Checking

Pros
  • No monthly service fees
  • No minimum deposit or balance requirements
  • Local branches and Cafés are available for in-person assistance
Cons
  • Fees for cashier's checks, outgoing wire transfers, and printed checks

Capital One's 360 Checking account is a good overall bank account whether you need a second-chance checking account or not.

There are no fees for monthly maintenance, overdrafts, foreign transactions, or minimum balance requirements. Capital One is known for providing an above-average online and mobile app banking experience. Plus, it offers many different secured and credit-building credit cards if you also need a second chance with credit.

Read our full Capital One 360 Checking review

FAQs

Can I open a bank account if I owe another bank money?

You may be able to open a new bank account if you owe another bank money. It depends on the bank, however.

Many banks won't let you open an account if you owe money to another bank. When you apply to open a bank account, banks often look at your credit and banking history. If you've had a lot of overdrafts, unpaid balances, bounced checks, or suspected fraudulent activity, you could be denied a bank account.

However, second-chance banks are more likely to allow you to open a bank account even if you owe another bank money because they don't consider your credit and banking history as factors for opening an account.

What is ChexSystems?

ChexSystems is a financial reporting company that provides banking history reports to banks and financial institutions. ChexSystems's reports include negative activity on bank accounts like bounced checks, unpaid balances, suspected fraud, and overdrafts.

Much like credit card companies look at your credit history in deciding whether to give you a credit card, many banks look at the ChexSystems's reports to determine if they will allow you to open a bank account.

Can I open a second-chance checking account online?

Yes, several online banks allow you to open a second-chance checking account online. SoFi®, Varo, Chime, and GO2bank are online financial companies where you can apply to open an account online.

Bottom line

If you've been denied opening a bank account due to a negative account balance, unpaid fees, or another issue and need to bring your banking history into good standing, you'll likely need a second-chance bank account at a bank or credit union.

While many second-chance bank accounts come with higher fees because of the high risk involved, there are second-chance banks where you can find accounts with minimal fees and balance requirements.

Check out our list of banks that don't use ChexSystems for a look at more banks that won't fault you for your financial history.

Reach Your Savings Goals Faster
SoFi Checking and Savings
5.0
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Financebuzz awards badge

2025 award winner Best Checking and Savings Combo

SoFi Checking and Savings Benefits
  • Limited-Time Offer: Earn up to a $300 bonus and up to 4.50% APY on Savings (3.80% APY5with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.6
  • No account, overdraft, or monthly fees1
  • Get your paycheck up to two days early12
  • Access additional FDIC insurance up to $3 million7
Open an account with SoFi® here