If you have a challenging credit history you may find yourself unable to get approved for a traditional checking account.
The most likely reason to be denied a checking account is that you’ve got an outstanding debt with a bank – often because of unpaid bank fees. But you may also be denied because of a history of frequent overdrafts. Just ask the bank who has denied you exactly what the issue is.
Banks primarily use ChexSystems which is a banking reporting agency that collects information about your previous problems with deposit accounts, including checking and savings accounts. Banks typically pull a ChexSystems report instead of pulling your credit report.
This is good news if you have bad credit but no poor history with banking institutions.
Do I Need a Second Chance Checking Account?
In your society today, we rely heavily on banks and lenders to acquire loans, invest money, and get a mortgage.
Second chance checking accounts help you to rebuild your trust with your bank. You will also benefit from the essential services from your bank. You can deposit, and withdraw when in need.
These accounts act as a learning platform to correct damaging behavior when it comes to dealing with banks. You want to live a life where banks welcome you in with open arms.
Related: Loans That Actually Build Your Credit
Can I open a bank account online without a deposit?
You can now open a bank account online, without any deposit, with bad credit, and even without any monthly fees in many cases.
And, opening a bank account in the digital age is a simple two-step method, thanks to the wide selection of banks and credit unions you can find through the web. You start by choosing a bank or credit union with $0 deposit requirements and simply fill out the online application.
Related: Best Installments Loans for Bad Credit
What do I need to open a Second Chance Checking Account?
- A valid government-issued ID such as a driver’s license, state-issued ID with photo, or a passport
- Social Security Number (for primary and joint account holder, if applicable)
- $25 Minimum deposit
The Pros and Cons of Second Chance Banking
| Pros | Cons |
| 24/7 access: With online banking | No in-person customer service: Online banks don’t have branches |
| Easily get your paycheck | Potentially higher fees |
| Online banks generally have well-designed & functioning websites | Fewer banks to choose from |
| Can typically upgrade to a traditional account after a year of positive activity | Will have to pay a monthly service fee in many cases |
The Best Second Chance Banking Accounts With No Opening Deposit
1 )Chime
Chime Bank is different in that it doesn’t have a specific second chance bank account. Instead, it doesn’t bother with credit or ChexSystem checks, making it easier for applicants with a challenging banking history.
With each spending account, users are issued a free Visa debit card that can be set up to issue transaction alerts and daily balance reminders. Banking is done using the Chime Bank’s mobile app.
There are absolutely no fees associated with the account, which means all of your money is available for important things like paying bills. You don’t even need an opening deposit or adhere to a minimum account balance.
You can even get your paycheck up to two days early if you set up a direct deposit. There’s also the option to get a free savings account as well.
2) BBVA Bank Online Checking
BBVA Bank Online Checking is among the most common second chance checking accounts that are easy to use since it offers online services. You can use your smartphone or computer to access your account.
You can pay bills, send money and view balances using the online account. Again, you can access ATM services in different areas of the US since the company has over 64,000 ATM machines countrywide.
You do have to pay a small opening deposit of $25 but there are no monthly fees.
3) Radius Bank Essential Checking
After 12 months in good standing with the Radius Bank Essential Checking, you may be eligible for a Rewards Checking account with Radius Bank.
Radius offers potentially the best lineup of options specifically tailored to someone who is looking to rebuild their financial reputation.
You’ll get budgeting tools, spending caps, and the incentive to graduate to a Rewards account where you can receive 1% cash back on all purchases and earn 0.15% interest on balances up to $100,000. And there is only a small $10 deposit required to open the account.
The catch is high potential overdraft fees. For each insufficient funds charge, you will be charged a $25 fee as well as a $5 daily overdraft fee. But that could be extra incentive to watch your balance!
Second chance banking gives individuals a way to rebuild their banking history so that they can eventually switch to a traditional account in the future. Since financial institutions vary greatly in their deposit requirements and fees, it is important to do your homework before choosing the account that best fits your needs.
