The PayPal Prepaid Mastercard® is no longer available to new applicants.
Banks generally don't check your credit score when you open a checking account, but they do screen your banking history through ChexSystems. If you have a track record of overdrafts, unpaid fees or other negative marks, you may not get approved.
There are second-chance checking accounts that don't require a ChexSystems review, however, making them advantageous if you're trying to rebuild your banking history.
CNBC Select has picked the best second-chance checking accounts, based on fees, rewards and other criteria. For more on how we made our selections, read our methodology.
Best for no fees: Chime
Who's this for? If you're looking to avoid banking fees, Chime® Checking* is our pick. It doesn't charge a monthly maintenance fee, overdraft fee or foreign transaction fee.
Standout benefits: Chime debit cardholders get fee-free transactions to more than 50,000 ATMs, including Allpoint, MoneyPass and Visa Plus Alliance machines. You'll find these at retailers like Target, Walgreens, CVS and 7-Eleven.
Chime® Checking
Monthly maintenance fee
None
Minimum balance
None
Free ATM network*
47,000+ fee-free ATMs
Overdraft fee
None
Minimum deposit to open
None
Annual Percentage Yield (APY)
No Interest
Terms apply.
Pros
- No minimum balance
- No monthly fees
- No overdraft fee
- FDIC-insured
- Access to over 50,000 fee-free ATMs*
Cons
- No APY
- No physical branches
*Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Best for rewards: Varo
Who's this for? With a Varo debit card, you can earn up to 6% cash back (up to $50 back per month) on eligible purchases with specific retailers. Offers vary, but past brands have included McDonald's, Popeyes, Macy's, PetSmart and Forever 21.
Standout benefits: This online bank doesn't charge a monthly maintenance fee or overdraft fees, and there is no minimum balance requirement.
Varo Bank Account
Monthly maintenance fee
None
Minimum balance
$0
Free ATM network
More than 40,000+ fee-free in-network Allpoint ATMs in the U.S.
Overdraft fee
$0
Minimum deposit to open
None
Annual Percentage Yield (APY)
$0
Mobile check deposit
Yes
Terms apply.
Pros
- Huge ATM network
- No monthly fee and no overdraft fee
- No minimum balance
Cons
- No APY
- No physical locations
Best welcome bonus: Chase Secure Banking
Who's this for? If you want a second-chance account that also offers a welcome bonus — a rare perk in this category — Chase Secure Banking℠ is worth looking at.
Standout benefits: New Chase Secure Banking account members can currently earn a $100 bonus after completing 10 qualifying transactions within the first 60 days after opening the account. (Offer expires 1/21/2026). Qualifying transactions include online bill payments, debit card purchases, ACH credits, Zelle transactions and Chase QuickDeposit activity.
Chase Secure Banking℠
Monthly service fee
$4.95 (waived for account holders under 25 or if you have qualifying electronic deposits totaling $250+ each monthly statement period)
Minimum opening deposit
None
Minimum balance to open
$0
Annual Percentage Yield (APY)
N/A
Free ATM network
More than 15,000+ Chase ATMs, more than 4,700 Chase branches, the Chase Mobile® app and Chase.com.
ATM fee reimbursement
None
Overdraft fee
No overdraft fees. Chase Secure BankingSM allows you to spend only the money you have available.
Mobile check deposit
Yes
Terms apply.
JPMorgan Chase Bank, N.A. Member FDIC.
Pros
- No minimum opening deposit
- New account holders may be eligible for a cash bonus
- No overdraft fees
- May be able to get your paycheck up to two days early
- Free money orders and cashier's checks
- Over 4,700 branches and 15,000 ATMs nationwide.
Cons
- No APY
- $4.95 monthly maintenance fee if you are over 25 and don't meet the direct deposit requirement
- No paper checks
- No reimbursement for out-of-network ATM fees
Information about Chase Secure Banking℠ has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
Best for military members: Wells Fargo Clear Access
Who's this for? If you're an active-duty service member or family member looking to rebuild your financial record, Wells Fargo Clear Access Banking is worth considering. This checkless checking account skips paper checks altogether, helping keep things simple as you rebuild your history.
Standout benefit: Members get free access to non-Wells Fargo ATMs, no overdraft fees, a contactless debit card, no foreign transaction fees and no paper checks to manage. The $5 monthly fee is waived for Worldwide Military Banking program participants who set up a qualifying military direct deposit.
Wells Fargo Clear Access Banking
Monthly maintenance fee
$5, with options to waive
Minimum deposit to open
$25
Minimum balance
None
Annual Percentage Yield (APY)
N/A
Free ATM network
11,000+ Wells Fargo ATMs
Overdraft fee
N/A
Terms apply
Pros
- Four ways to waive the monthly maintenance fee
- Send and receive money with Zelle
- Easy-to-use mobile app
Cons
- $25 minimum deposit to open an account
- No APY
- No reimbursement for out-of-network ATM fees
How to avoid the monthly fee:
- Maintain $500 in combined minimum deposit balances,
- or make qualifying direct deposits totaling $500 or more,
- or be between 17 - 24 years old
- or have a linked Wells Fargo Campus ATM Card or Campus Debit Card (for college students)
Best for online banking: Go2Bank
Who's this for? If you don't need branches, Go2Bank is an easy-to-get online checking account that doesn't require a ChexSystems review or any opening deposit or minimum balance.
Standout benefits: You can earn cashback (up to 7%) on in-app e-gift card purchases and access a wide network of fee-free ATMs. The $5 monthly fee is waived with at least one qualifying payroll or government benefits direct deposit of $100 or more.
Go2Bank
Monthly maintenance fee
$5, waived with qualifying direct deposit
Minimum balance
None
Free ATM network
55,000+ fee-free ATMs within the All point network. $3 for out-of-network withdrawals plus any fee the ATM owner or bank may charge. ATM limits apply.
Overdraft fee
$15 for each transaction that is greater than $5 and overdraws your primary deposit account by more than $10, up to a maximum of ten overdraft fees per monthly statement period.
Annual Percentage Yield (APY)
N/A
Terms apply.
Pros
- No minimum balance
- FDIC-insured
- Access to over 55,000 fee-free ATMs
Cons
- No APY
- Overdraft fees may apply
What is a second chance checking account?
Second-chance bank accounts are designed for people unable to qualify for a standard checking account due to blemishes in their banking history, such as unpaid fees, involuntary account closures or a history of overdrafts.
Because they're designed to help repair a shaky banking history, these accounts often come with higher fees, fewer perks and stricter approval requirements.
Just like with a secured credit card, however, you may qualify for an upgrade to a standard account after you successfully manage your account for a certain amount of time.
How to choose a second-chance checking account
When you're choosing a second-chance checking account, look for one that helps you rebuild your financial standing without adding extra stress. Look for accounts with low or no monthly fees, no minimum balance requirements and features like direct deposit or mobile banking.
Check whether the bank reports your account activity to ChexSystems — building a positive history there can help you qualify for standard accounts in the future — and see whether the account can eventually convert to a standard checking account after a period of responsible use.
Pros and cons of second-chance checking accounts
Second-chance accounts can offer financial services to people unable to open a standard bank account, but they come with drawbacks/
- Can rebuild your banking history
- Cheaper than checking cashing services
- Safer than keeping large amounts of cash at home
- Tend to have higher fees and fewer options to have them waived
- Often require a higher opening deposit, minimum balance or monthly direct deposit
- Less likely to have free ATM access, overdraft protection and other benefits
How to manage a second-chance checking account
You must approach your second-chance account wisely. Here are some tips to ensure that:
- Understand the fees - Read the account terms carefully. Many second-chance accounts come with monthly fees or transaction limits that can't be waived, unlike some standard checking accounts. Make sure you also know how to avoid any extra charges.
- Keep a cushion in your account - Try to always keep a small buffer (even $20 to $50) to avoid overdraft fees.
- Pay bills through the account - Use your account to pay recurring bills (like utilities or subscriptions). This shows consistent activity and helps rebuild your banking history.
- Track your spending - Use your bank's mobile app, text alert or budgeting apps to keep a close eye on balances.
Alternatives to second-chance checking accounts
There are other ways to build your financial strength while managing your money effectively.
Prepaid debit card
A prepaid debit card works like a debit card but isn't linked to a traditional bank account. Instead, you load money and use it to make purchases or pay bills. Because you're only spending money you've already added, there's no interest or risk of overdraft. Prepaid cards don't require a credit check, so you can get one regardless of your credit history.
The PayPal Prepaid Mastercard® lets you earn 5% back on up to $1,000 spent in your selected category every month.
The FamZoo Prepaid Card allows parents to set up automated billing for recurring expenses (like cell phone plans) and determine interest rates on family loans.
FamZoo Prepaid Card
Card opening fee
$0 for first 4 cards, then $3 for each additional card
Monthly fee
$5.99 (or as low as $2.50 if you prepay for 24 months in advance)
Maximum balance
$5,000
Cash reload fee
$4 to $6
ATM withdrawal fee
None, but the ATM operator may charge a fee
Foreign transaction fee
None
Rewards
N/A
Mobile check deposit
No
Terms apply.
Pros
- Great way for parents to teach kids about money
- Parents can control kids' spending, set up automatic recurring transfers (i.e. allowance), lock and unlock cards
- No card opening fee for the first 4 cards (then $3 per card)
- No fee on purchases made outside the U.S.
Cons
- Up to a $5.99 monthly fee
- $3 card opening fee after your first 4 cards
- No mobile check deposit
Secured credit card
Designed for people building or rebuilding their credit, secured credit cards require a refundable deposit that usually becomes the credit limit. As long as you pay your balance on time and in full, you'll build a positive credit history and eventually qualify for an unsecured card.
You can get approved for the Capital One Platinum Secured Credit Card with a deposit of just a $49 deposit. After just six months of on-time payments, you may qualify for a higher limit.
The Capital One Platinum Secured Credit Card can help you build, or rebuild, your credit because you can be approved with no credit or bad credit.
- No annual fee
- Low minimum refundable security deposit starting at $49 to get a $200 initial credit line
- No foreign transaction fees
- No rewards on purchases
- No welcome offer
- High APR
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get at least a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
- Top rated mobile app
Balance transfer fee
- $0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Second-chance checking account FAQs
What is a second-chance bank account?
A second-chance account is available to consumers who have had overdrafts or other negative banking activity that is keeping them from being approved for a standard checking account. Approval is easier because second-chance accounts typically don't require a ChexSystems review.
What is ChexSystems?
ChexSystems is a reporting agency that collects information about consumer banking activity. Banks and credit unions will often review your ChexSystems report when you apply for accounts such as checking or savings accounts.
Can you open a bank account if you have a negative balance?
If you have an unpaid negative balance with one bank, it can appear on your consumer report with agencies such as ChexSystems and hurt your chances of being approved at another bank. In this situation, you may want to consider a second-chance bank account that doesn't include a ChexSystems review.
How long does negative information stay on ChexSystems?
Negative information typically stays on your ChexSystems report for five years. After that, it should be removed automatically. If you want to check your report sooner, you're entitled to one free copy per year on the website.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every bank account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best second-chance checking accounts, CNBC Select analyzed more than 25 traditional banks, credit unions and online banks.
We only considered checking accounts that don't require a ChexSystems review during the application process. We also compared each account on a variety of features, including:
- Minimum balance requirement
- Initial deposit requirement
- Fees
- Nationwide availability
- Branch locations
- Online accessibility
- ATM network
- Ease of use and account accessibility
We also considered CNBC Select audience data, when available, including general demographics and engagement with our content and tools.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Read more
For rates and fees of the Discover it® Secured Credit Card, click here.
*Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC.
**Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Information about Chase Secure BankingSM has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
