Do you have a bad banking history? Have you been rejected for a checking account in the past? If so, you're not alone. But don't worry, there are second chance checking accounts available that don't require an opening deposit and don't use ChexSystems.
Second-chance checking accounts are designed to help people with poor banking history rebuild their credit and get back on their feet. They may have limited features, such as lower withdrawal limits and no debit cards. But they're a great way to get started on the road to financial recovery.
In this article, I'll show you the best banks that offer second chance checking with no opening deposit required.
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List of Banks Offering Second Chance Checking With No Opening Deposit
There are only a few banks that allow you to open a second chance checking account with no opening deposit. They are more like no-ChexSystems banks since they consider applicants with bad credit.
Below are the only banks that let you open a second chance checking account with no opening deposit:
|Checking Account||Minimum Deposit||Monthly Fee|
|Varo Bank Account||$0||$0|
|Chime Spending Account||$0||$0|
Chime is the top choice for those who want to open a second chance checking account with no opening deposit. In addition, chime doesn't consider your credit history or score and anyone with bad credit can open a Chime account for free without any minimum account opening deposit. Chime is considered one of the best banks that allow people to open online checking accounts with no opening deposit or credit check.
Chime doesn't check your credit or ChexSystems reports when you apply for an account. To help make it easier to keep your banking habits on track, Chime doesn't charge fees for monthly maintenance, overdrafts, or international and foreign transactions.
You also don't have to wait days for your direct deposit paycheck to clear; Chime will deposit your money into your account as soon as it receives the funds, which can be up to two days earlier than most banks. In addition to getting an online second-chance checking account, you will also get an instant debit card that you can use for contactless transactions and to withdraw your cash from ATMs. ATM access is free within MoneyPass and Visa Plus Alliance networks; $2.50 out-of-network fee.
Chime also offers tools to help track your spending, pay bills, send checks, and automate savings, which is also made easier when you join the Chime Spending (checking) Account with the Chime Savings Account. As a fintech company, Chime partners with The Bancorp Bank and Stride Bank, N.A. to provide its banking services, debit cards, and FDIC insurance.
2. Varo Bank
Varo Bank is another top option for those wanting to open a second chance checking account with no opening deposit required. This bank doesn't check your credit history and as such, makes it suitable for all those who have bad credit to open an online checking account with no opening deposit and credit check.
Varo Bank offers customers a second chance check which doesn't make use of ChexSystems or credit reports when they apply. Just as it wasn't enough, the account doesn't charge fees for monthly maintenance, foreign and international transactions, paper check mailing, or transfers. You can even get your paycheck up to two days early when you sign up for direct deposits.
Cash deposits aren't that smooth Varo, however, as you will need to visit a participating retailer to deposit cash at the register. This can cost up to $5.95.
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Banks Offering Second Chance Checking With Small Opening Deposit
There are many other banks that let you open a second chance checking account with a minimum opening deposit to be dropped in the account upon opening it. However, they will also require you to pay a monthly maintenance fee. These banks include:
|Checking Account||Minimum Deposit||Monthly Fee|
|Peoples Cash Solutions Second Chance Checking||$30||$4.95|
|Wells Fargo Clear Access Banking||$25||$5|
|Radius Essential Checking||$10||$9|
|Corporate America Family Credit Union Fresh Start Checking Account||$5||$10|
How do I Open a Second Chance Checking Account?
Opening a second chance account requires you to authenticate with the bank with the best account features. Then, you can inquire from your nearest banks about second chance checking accounts and the features they have to choose the best.
Once you've identified the best bank with the most attractive checking account, you can then apply. However, you need to gather all the required information for opening an account. This information includes:
- Social Security Number (SSN)
- The government Identification Document – might be an ID card, passport, or driver’s license.
- Physical address
- Email address
- Phone number
The Social Security Number (SSN) is essential for all verifications concerning tax tracking and preventing the opening of illegal accounts. The SSN combined with an ID helps to identify you correctly. The physical address is essential to receive periodic paper statements and other tangible items such as debit and credit cards.
Your email and phone numbers are essential for regular communication in urgent situations. You can open an account online or visit the nearest bank’s nearest branch with all the requirements at hand for the account opening.
Second Chance Checking With No Opening Deposit Near Me?
To open a second chance checking account with no opening deposit near you, you will need to assemble the above documents look for the nearest bank in your location, and inquire if it is possible to open a second chance checking account with no deposit. However, Chime is the best choice to open a second chance checking account with no opening deposit as it can be accessed online equally by everyone and if you have your mobile device, then you can open your Chime second chance account without opening a deposit from the comfort of your home.
Online Checking Account No ChexSystems No Opening Deposit?
Backs such as Chime, and Varo allow you to open an online checking account with no checksystems and no opening deposit required. In addition, you won't have to pay monthly fees when using these banks and allow ATM withdrawals at Allpoints and MoneyPass without any fee.
Best Alternatives to a Second Chance Checking Accounts?
If a second chance account just isn't for you, or if you still have issues opening one, there are still some options left.
1. Prepaid debit cards
Prepaid debit cards are a go-to product for those who don't have a traditional bank account, especially since they don't require a credit check. Prepaid cards aren't linked to a bank account, and you can spend only however much you have loaded onto the card. This means you can't get yourself into overdraft trouble.
However, prepaid cards are notorious for the many fees they charge. This may make them a risky option for folks who already struggle with fees and keeping their money on track.
2. Fintech debit cards
Banking isn't just for traditional banks anymore; neobanks (online-first fintechs offering banking products) and even P2P fintech companies (like Venmo and PayPal) offer debit cards nowadays. It is worth checking these products out, as they may have more lax requirements, and tend to charge very few fees, if any.
Just make sure that your fintech of choice provides FDIC insurance, whether through their own bank charter or a partnership with an FDIC-insured bank, to ensure your money is protected.
3. Mobile Wallets
There are various mobile wallets that you can open accounts with online. Mobile wallets allow you to recharge, receive, and send money, as well as pay for goods and services online. Mobile wallets are easy to open on your smartphone so long as you have Identification documents, email address, phone number, and physical address.
Some of the mobile wallets include the following.
Do I Need A Second Chance Checking Account?
You'll likely need to turn to a second chance account if you find your bank account applications are consistently being rejected by banks utilizing ChexSystems. If you have a history of incurring overdraft fees or you closed an account with a negative balance or with outstanding fees, for example, it may be difficult to start over at a new bank due to this information being reported in ChexSystems reports and credit checks.
Second chance accounts offer another way in, as they don't have the same application requirements as most traditional accounts. Plus, many of these accounts are specifically designed to help you rebuild a positive track record.
Best Second Chance Banking Practices
To make the most of your second chance checking account, you'll want to demonstrate the responsible banking skills we know you can pull off. Proving that you can turn your banking history around also will give you the opportunity to open a more dynamic account, whether at the same bank or at another financial institution.
Here are some of the best practices to make sure you're putting into action:
1. Pay your monthly fee
If your account has a monthly fee, it's important to show your bank that you can pay it on time, every time. Unpaid fees are a common item that appears on ChexSystems reports. To avoid this mark, bake the fee into your monthly budget. If it doesn't fit into your budget, look for an account that either doesn't charge a monthly fee or offers a way to waive it.
2. Avoid overdrafts at all costs
This can be a hard ask for folks who live paycheck to paycheck, but it's important to keep a close eye on your balance — at all times, if necessary — to ensure you don't overspend. Due to fees, overdrafts can easily snowball, dragging your situation from bad to worse. It helps to look for an account that declines potential overdraft transactions and doesn't charge fees for overdrafts or non-sufficient funds to avoid this issue entirely.
3. Stay within your ATM network
Use your mobile app or bank's website to find ATMs that are within the network to avoid needlessly losing funds to ATM fees. While it may seem easiest to just go to the nearest ATM, the $2.50 out-of-network fee you'll pay per transaction can add up over time — especially on top of the ATM owner's surcharge.
Do Second Chance Checking Accounts Qualify For Loans?
You won't be eligible for loans if you are using a second chance checking account. However, some banks can offer overdrafts to second chance accounts so that you can meet specific financial requirements. Do not forget that the second account helps you to improve your banking history. Therefore, since you already have a rocky banking history, banks may not trust you with their money as loans.
However, once you upgrade to regular accounts, you might qualify for specific amounts of loans depending on your credit scores.
Second Chance Checking Account FAQs
Is second chance checking as good as standard checking?
On their face, second chance checking accounts aren't as appealing as standard accounts, thanks to their limitations. However, second chance accounts are good products for those who need them, and they have most of the same functions as standard checking accounts, such as offering debit cards and allowing you to make purchases, transfers and withdrawals. Some also include check writing abilities. The difference is that second chance checking accounts tend to offer those services at a lower capacity. This means you'll likely be more limited in the number of transfers you can make or the amount you can withdraw in a day.
Do credit unions offer second chance checking accounts?
Yes, credit unions can offer second chance accounts, although not all of them do. You'll want to check with the credit union you have in mind to confirm its offerings.
How does one apply for a second chance checking account?
You can apply for a second chance bank account just as you would apply for a regular account, whether by going online, visiting a branch or calling. As usual, your account application will require personal and contact information like your name, Social Security number and address.
Final Thoughts: Second Chance Checking Account With No Opening Deposit and No ChexSystem
We have seen the best banks that allow you to open a second chance checking account with no opening deposit and that do not use ChexSystems to check the banking history of all customers. A second chance checking account helps you to recover from your poor banking history. Such accounts are downgrades of the regular bank accounts. Almost all banks do not issue debit cards for a second chance checking account.
However, consider checking out several options for financial institutions if they offer what you need. Check also their monthly fees, overdraft, and minimum deposit required to hold an account with them. Once you are sure of the bank you are going in for, you can open your account with them without fear and it is to mention that all of them are FDIC secured meaning your funds are safe regardless of the amount you pay or not for fees.