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Second chance banking makes it possible for people who can't qualify for a traditional bank account to access basic banking services. Consumers may turn to second chance banking if they've had a history of account overdrafts, bounced checks, account closures or other events that prohibit them from opening an account at a mainstream bank.
The approval requirements for these accounts are typically less stringent compared to traditional checking accounts, but some of them can also come with some limitations. Here's what you need to know.
What Is a Second Chance Bank Account?
A second chance bank account is an account with a financial institution that either doesn't check your ChexSystems report or is willing to look past your previous missteps.
A ChexSystems report can show negative bank account actions and activities, such as an involuntary account closure and unpaid negative balances. If the financial institution deems risks based on information in your ChexSystems report, it can deny your application.
Second chance accounts give you an opportunity to access basic banking services without needing to rely on inconvenient and high-cost money services, such as check cashing and money orders.
While some key features may be missing, you can use a second chance account to rebuild your banking history and get back in the good graces of other banks and credit unions.
Pros and Cons of Second Chance Bank Accounts
Although second chance accounts offer key services for unbanked and underbanked households, there are some drawbacks to consider. Here's what you need to know.
Pros
Easy approval: With no ChexSystems check involved in the application process, second chance accounts may be easier to obtain than traditional bank accounts.
Access to basic banking needs: You may not get all the features of a traditional bank account, but you'll typically still get important services, such as direct deposit, a debit card and ATM access. What's more, many second chance accounts offer all of the same features you can get with a standard bank account option.
Can help you rebuild your banking history: While second chance financial institutions typically won't review your ChexSystems report when you apply, they'll typically still report your banking activity after your account is opened. This can help you build a positive banking history and improve your odds of getting approved for a traditional bank account in the future.
Cons
Some accounts offer limited services: Depending on which financial institution you choose, you may not have access to certain features, such as overdraft protection or check-writing privileges.
Monthly fees: Despite offering limited services, some second chance accounts come with a monthly fee, which may or may not be waivable.
Limited accessibility: Not all financial institutions offer second chance accounts, so you may not be able to go with your preferred financial institution.
Is a Second Chance Checking Account Right for You?
A second chance checking account can be a good fit if you're having trouble getting approved for a traditional checking account. While some of these accounts limit what you can do, others offer full banking services and little to no monthly fees.
Most important, many of these accounts can give you access to critical services, such as mobile deposits, bill pay and more. Just keep in mind that some of these financial institutions may be online only, so if you need to cash checks, check the company's physical branch footprint to determine whether it's a good fit.
Nationwide Second Chance Accounts
Many financial institutions offer second chance accounts. Below are just a handful of nationwide examples (information valid as of March 4, 2025). Refer to company websites for account details and related disclosures.
| Capital One 360 Checking Account | Monthly fee: $0 Minimum to open: $0 Minimum balance: None Overdraft fees: None |
|---|---|
| Chase Secure Banking | Monthly fee: $4.95, waivable with qualifying direct deposits of $250 or more per statement period Minimum to open: $0 Minimum balance: None Overdraft fees: None |
| Chime Second Chance Banking | Monthly fee: $0 Minimum to open: $0 Minimum balance: None Overdraft fees: None |
| GTE Financial Go Further Checking | Monthly fee: $9.95; waivable if you enroll in e-statements, make $500 in aggregate deposits per month and make a combination of 15 monthly debit and/or credit card transactions Minimum to open: $5 Minimum balance: None Overdraft fees: $7 |
| LendingClub Rewards Checking | Monthly fee: $0 Minimum to open: $25 Minimum balance: None Overdraft fees: None |
| SoFi Checking | Monthly fee: $0 Minimum to open: $0 Minimum balance: None Overdraft fees: None (Overdraft coverage up to $50 for debit card purchases; available to customers with monthly direct deposits of $1,000 or more) |
| Varo Bank Account | Monthly fee: $0 Minimum to open: $0 Minimum balance: None Overdraft fees: None |
| Wells Fargo Clear Access Banking | Monthly fee: $5; waivable if the primary account owner is between ages 13 and 24, has a Wells Fargo Campus ATM Card or Campus Debit Card linked to the account or receives a qualifying monthly non-civilian military direct deposit with the Wells Fargo Worldwide Military Banking program Minimum to open: $25 Minimum balance: None Overdraft fees: None |
Second Chance Banks by State
Alabama
- Azalea City Credit Union Opportunity Draft
- Family Security Credit Union
- Gulf Winds Credit Union
- United Bank Gateway
Alaska
- True North Federal Credit Union
Arizona
- Banner Federal Credit Union
- Tucson Old Pueblo Credit Union
Arkansas
- Diamond Bank
- Red River Credit Union
- River Valley Community Federal Credit Union
- Unify Federal Credit Union
California
- North County Credit Union
- Premier America Credit Union
- Priority One Credit Union
Colorado
- Liberty Savings Bank
- NuVista Federal Credit Union
- Unify Federal Credit Union
Connecticut
- Finex Credit Union
- Hartford Federal Credit Union
- Tobacco Valley Teachers Federal Credit Union
Florida
- Compass Financial Federal Credit Union
- First Florida Credit Union
- Gold Coast Federal Credit Union
- South Florida Federal Credit Union
Georgia
- Georgia's Own Credit Union
- Peach State Federal Credit Union
Hawaii
- Hawaii USA Federal Credit Union
Idaho
- Latah Credit Union
Illinois
- Catholic & Community Credit Union
- First American Bank
- First National Bank and Trust Company
- Marquette Bank
Indiana
- Centra Credit Union
- Heritage Federal Credit Union
- Horizon Bank
- Liberty Federal Credit Union
Iowa
- Collins Community Credit Union
- Federation Bank
- Greater Iowa Credit Union
- North Iowa Community Credit Union
Kansas
- Central National Bank
- United Consumers Credit Union
Kentucky
- Central Bank
- FNB Bank
- Hearthside Bank
- Liberty Federal Credit Union
Louisiana
- Neighbors Federal Credit Union
- Pelican State Credit Union
- Southwest Louisiana Credit Union
Maryland
- Central Credit Union of Maryland
- Clear Mountain Bank
- Market USA Federal Credit Union
- SecurityPlus Federal Credit Union
Massachusetts
- Alden Credit Union
- Athol Credit Union
Michigan
- Credit Union One
- Horizon Bank
- Marshall Community Credit Union
- Michigan State University Federal Credit Union
Mississippi
- Citizens National Bank
- Gulf Coast Community Federal Credit Union
- Liberty Federal Credit Union
- MUNA Federal Credit Union
Missouri
- First State Community Bank
- Montgomery Bank
- St. Louis Community Credit Union
- United Consumers Credit Union
Montana
- Clearwater Credit Union
Nebraska
- Central National Bank
Nevada
- Clark County Credit Union
- WestStar Credit Union
New Hampshire
- GFA Federal Credit Union
New Jersey
- Credit Union of New Jersey
- Jersey Shore Federal Credit Union
- United Teletech Financial Federal Credit Union
New Mexico
- First American Bank
- Lea County State Bank
New York
- Adirondack Regional Federal Credit Union
- Alternatives Federal Credit Union
- Centra Credit Union
- Financial Trust Federal Credit Union
North Carolina
- Centra Credit Union
- Excite Credit Union
- Skyla Credit Union
Ohio
- Eaton Family Credit Union Inc.
- Hopewell Federal Credit Union
- KEMBA Federal Credit Union
Oklahoma
- Allegiance Credit Union
- Oklahoma Educators Credit Union
- Western Sun Federal Credit Union
Oregon
- Heritage Grove Federal Credit Union
- Point West Credit Union
Pennsylvania
- Centra Credit Union
- Utilities Employees Credit Union
- West Branch Valley Federal Credit Union
South Carolina
- Caro
- Carolina Trust Federal Credit Union
- Market USA Federal Credit Union
- Skyla Credit Union
Tennessee
- Liberty Federal Credit Union
- First National Bank
- Hearthside Bank
- Select Seven Credit Union
Texas
- Associated Credit Union of Texas
- Baptist Credit Union
- Kelly Community Federal Credit Union
- Prestige Community Credit Union
Utah
- American United Federal Credit Union
- Cyprus Credit Union
Virginia
- Central Virginia Federal Credit Union
- Healthcare Systems Federal Credit Union
- Member One Federal Credit Union
Washington
- MountainCrest Credit Union
West Virginia
- Clear Mountain Bank
- West Virginia Federal Credit Union
Wisconsin
- Brewery Credit Union
- Crossbridge Community Bank
- First National Bank and Trust Company
- WESTconsin Credit Union
Wyoming
- Stagepoint Federal Credit Union
How to Open a Second Chance Bank Account
Here are some steps you can take to open a second chance bank account:
- Shop around. Start by researching and comparing top second chance bank accounts like the ones provided above. As you consider your options, look at potential fees, deposit requirements, services and limitations. You can also check to see if the bank will allow you to upgrade your account in the future with responsible use.
- Apply with the financial institution. You can usually apply online, but if the company has physical branches, you can also choose to apply in person. You'll likely need to provide some basic information about yourself, including your name, date of birth, Social Security number, address and contact information, as well as a government-issued photo ID.
- Fund your account. Funding an account can be difficult if you don't have another account from which you can transfer money. Fortunately, many of these accounts don't require opening deposits, so you can set up direct deposit or use a third-party money transfer service to fund the account after opening.
Frequently Asked Questions
Can I Be Denied a Second Chance Bank Account?
It's possible to be denied a second chance account, especially if the financial institution uses other consumer reports, such as your credit report, to evaluate your eligibility.
That said, most second chance accounts make it easy to get approved, so you shouldn't have too many problems, especially if you choose a nationwide financial institution.
What Are Alternatives to a Second Chance Account?
Depending on your situation and needs, there are a few alternatives to a second chance bank account you could consider:
- Prepaid debit card: Prepaid cards allow you to spend money that you load onto your card. You can generally only spend what you add to the account, though some may offer overdraft protection. To add money to your account, you can typically set up direct deposit or load cash at a participating retailer. That said, a prepaid debit card typically won't help you improve your ChexSystems report.
- Money services: Many retailers offer various money services, including check cashing as well as money orders or cashier's checks, to pay bills. That said, you'll typically pay a fee for each service.
Do I Need to Make an Opening Deposit?
As with traditional bank accounts, the deposit requirements for a second chance account will depend on which financial institution you choose. While some require a minimum deposit to open your account, others don't.
The Bottom Line
Second chance banking isn't always ideal, but it's a solid option if you've been denied a traditional checking account. As you work to get back on the right track with your banking, also consider getting a free copy of your credit report from AnnualCreditReport.com, which you can do weekly. You can also check your credit report and FICO® Score☉ Θ daily for free with Experian.
While your credit history doesn't have a lot of influence on whether you can get a better bank account in the future, building your credit can help you improve your overall financial standing. Doing so can prevent some of the issues that may have caused your current predicament from happening again.