Best Banks Offering Second Chance Checking With No Opening Deposit

best banks offering second chance checking with no opening deposit

Are you in search for a second chance checking with no opening deposit? It should be the case if you don't have a good banking history and that you might have been rejected by some banks which then damns your banking status.

For these cheking accounts, banks either relax application standards, or forgo checking credit reports and ChexSystems reports which keeps eye on your deposit account history altogether.

This second chance checking account with no opening deposit helps you rectify your poor banking history you once had and in return benefit from banks and their banking services. Though there are many second chance banks that do not use ChexSystem but require you to have an amount for opening deposit, we can still find some few second chance banks that with no opening deposit and that do not use the ChexSystem for account opening. Not every bank or credit union offers second chance checking account though.

Second chance checking accounts are limited in terms of their services. Example, You cannot get a second chance checking account that comes with a debit card. Again, most checking accounts limit the amount of money you can withdraw from your account, as well as the number of times you can withdraw cash. The banks implement all of these so as to prevent you from doing useless expenditures which do not have a valid motif and qualified as "bad behavior" by the bank.

One wonder hanging in your mind now is, how do banks know your banking history? Well there's no wonder in that. Banks pull your banking history from a system known as ChexSystem which records all of your banking history and can be available for every bank that want to know how you performed with previous financial institutions. An example can be seen when banks and most financial institutions report borrowers to the credit unions and when banks report those with poor banking activities and practices to the ChexSystems. All your banking status are being recorded and reported to ChexSystems by banks that use this system when opening bank accounts. That is why it is very important to make the right choice of bank when you want to hold a bank account be sure of the bank you're engaging yourself with.

Furthermore, the body keeps records of bank account holders who violate bank regulations. As a result, every bank can access information concerning those with poor banking history.

All that said, we've decided to compile the best second chance bank accounts (checking accounts) with no opening deposit required below to help you get your banking back on track.

What is ChexSystem and How Does it Works?

We have been talking of ChexSystems since then, so what really are ChexSystems?

ChexSystems is a check verification service and consumer credit reporting agency owned by the eFunds subsidiary of Fidelity National Information Services. It provides information about the use of deposit accounts by consumers.

ChexSystems is an agency entrusted to keep records of people with rocky banking history. Every bank reports individuals who violate one or two regulations of the financial institution to the agency so that other banks can get the warning that a particular individual is not fit to hold a bank account.

When opening an account with a bank or credit union, the concerned institution will check the information of the individual opening an account in the ChexSystems to see whether the individual has any history of misusing bank or credit in accounts.

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If records of you from other banks are found in ChexSystems, your records will stay with the agency for up to five years. Unfortunately, that means that you may not get a standard account with any financial institution during that period which can be frustrating, 5 year blah, I don't want to be in such a rough situation.

How Do You Find Yourself in ChexSystems?

It is very important to know of the kind of rocky activities that can get you in the ChexSystems. It is very important for everyone wanting to open a bank account or holding a bank account to know what not to do in order to avoid being recorded in ChexSystems.

Below are banking issues that can get you in ChexSystems:

  • Unpaid negative balances: Such as overdrafts or accounts closed involuntarily. If you owe the bank and close your account without paying, you will find such records of you in ChexSystems.
  • Suspected fraudulent activity: Any activity that may relate your account to fraud such as suspicious bank transfer.
  • Bouncing checks: Suppose you write checks that your balance cannot cover, the check bounces. Writing bouncing checks now and then definitely forces your bank to report you in the ChexSystems. Also, you can find yourself in the ChexSystems if you try to deposit bad checks.
  • Unpaid fees: Most banks will require you to pay some fees such as account maintenance monthly fees, annual fees, overdraft fees, and any other applicable fee. If should in case you do not pay these fees in time, the bank might likely report you to ChexSystems.

What Will You Find in The ChexSystems Report?

ChexSystems reveal your rocky banking history so that other banks can be aware of how you behave with banks and financial assets and decide whether to take you or not.

Below are some information that you can find in the report of ChexSystems and what they make available to banks. The format of a ChexSystem report is as shown below.

  • Identifying information like your name, Social Security number and past addresses
  • Unpaid negative balances, including overdrafts or accounts closed involuntarily
  • Suspected fraudulent activity
  • Account inquiries or applications for other bank accounts
  • Unpaid fees
  • Public records

Although some other consumer reports contain negative information from the previous seven years or more, ChexSystems reports generally keep negative information on record for only five years. But each financial institution has its own rules about how much time must pass after a negative incident before you can open a new bank account.

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Can I see my chexsystems report online?
You can get your ChexSystems report instantly online. There may be a fee to obtain the ChexSystems report if you'd like access to it more than once every 12 months. The Fair Credit Reporting Act allows only accurate information to be reported by a consumer reporting agency like ChexSystems.
A ChexSystems Report can be ordered online at ChexSystems Consumer Assistance. Get it instantly once you answer a few verification questions.

How do you get out of ChexSystems?

It is possible to get out of ChexSystems clear your name from the agency and enjoy more banking services. To get yourself and banking history out of ChexSystems, you will need to start with banks that you owe fees to. If there is any bank that you owe fees to, you will need to settle the banks first for them to annul their report to the ChexSystems. Moreover, you have to settle any negative balances and then get a receipt showing your payment and send it to ChexSystems.

You can also request your bank or the collection agency to clear your name from the ChexSystem. Once all of that completed, you will however need to prove that you can responsibly handle another bank account. This is where a second chance checking account come to play a major role that will help you to transit to a standard checking account.

CHECK ALSO: How to Open a Bank Account In Europe Online & Locally

Also, not all records about negative listings in ChexSystems are accurate. For example, you could be listed, but the records are erroneously listed under you. Also, there are cases of identity theft that can hit you hard. For example, if you think someone may have illegally used your details to open a bank account that led you to ChexSystems, you can dispute it by opening a dispute in the ChexSytems. The best way to deal with this first is to prove your innocence to the bank.

Standard checking accounts have lots of advantages. For example, you can send money with a checking account number instantly, withdraw cash at an ATM point, among many other things.

As a general point of view, if you want to get out of the ChexSystems database you will need to make things change between you and the banks you violated some of which include:

  • Settle all existing debts on the concerned bank account and request your bank to remove your name from the ChexSystems.
  • Wait until ChexSystems clears your name from their database.
  • Dispute about identity theft
  • Dispute errors online or via a telephone call to ChexSystems.

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List of Banks Offering Second Chance Checking with No Opening Deposit

From many searches, there are only few banks that allow you to open a second chance checking account with no opening deposit. However, we find some more that allow you to open a second chance account with small amount of money as minimum deposit.

Below are the only banks that let you open a second chance checking account with no opening deposit:

  1. Chime
  2. Varo

Checking Account Minimum Deposit Monthly Fee
Varo Bank Account $0 $0
Chime Spending Account $0 $0

1. Chime

best banks offering second chance checking with no opening deposit

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 band credit can open a chime account for free without any minimum account opening deposit. Chime is considered as one of the best banks that allow people to open online checking accounts with no opening deposit nor 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.

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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 of getting online second chance checking account, you will also get an instant debit card that you can use to contactless transaction 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.

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2. Varo

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, making it suitable for all those that have bad credit to open an online checking account with no opening deposit and credit check.

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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.

Banks Offering Second Chance Checking With No Little Opening Deposit

There are many other banks that let you open a second chance checking account with minimum opening deposit to be dropped in the account upon opening it. However, they will also require you to pay 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
GoBank Account $20 $8.95
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 first requires you to authenticate with the bank with the best account features. Then, you can inquire from your nearest banks about the 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. These information include:

  • 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.

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Your email and phone numbers are essential for regular communication for urgent situations. You can open an account online or visit the suitable 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 and 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 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 deposit from the comfort of your home.

online checking account no chexsystems no opening deposit?
Backs such as Chime, Varo allow you to open an online checking account no checksystems no opening deposit required. In addition, you won't have to pay for monthly fees when using this banks and allow ATM withdrawals at Allpoints and MoneyPass without any fee.

Best Alternatives to a second chance checking account?

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.

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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.

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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.

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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 in 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.

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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.

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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.

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3. Stay within your ATM network:

Use your mobile app or bank's website to find ATMs that are within 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 account so that you can meet specific financial requirements. Do not forget that the second accounts help 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.

Final Thoughts on 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.

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.

Most items in this guide were gotten from Valuepenguin.

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