Second Chance Bank Accounts


Apply for second chance checking accounts with no opening deposit or chexsystems verification.

second chance bank accounts

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What Are Second Chance Bank Accounts?

Your ChexSystems report is as vital as your credit card report since it determines whether or not you are financially fit for a bank to accept your application process. You have to apply to open a checking account, and usually, before your request is approved, credit unions and banks will go over your ChexSystems report. Suppose your report reflects negative bank account activities and actions like unpaid negative balances or involuntary account closure. In that case, your application will be denied.


Usually, this is because the credit union or the bank decide that you pose a high risk because of your report’s information. Luckily, there are second chance bank accounts, which are often an opportunity to turn around your negative banking history.

Think of it as a fresh start to your financial history. These accounts often offer you the chance to rebuild your banking history, which can help you get back to getting approval from credit unions and banks. Usually, these accounts do not need a high minimum balance, and some do not require a balance at all. It is also worth noting that some may not charge you any fees.

Second Chance Bank Accounts

As discussed, second chance banking is usually the best alternative for individuals denied a checking account. Typically, the approval of second chance bank accounts is lower than those of standard checking accounts. However, it is worth noting that these accounts have some limitations.

How Second Chance Checking Works?

When you get a second chance account, it will help if you rebuild it. Otherwise, it beats the point of getting one. Usually, this is an account that you get when a credit union or bank is willing to overlook your missteps or when they do not go over your ChexSystems report. Using this account can help you build a positive ChexSystems history while waiting for your negative records to get off your report. It is worth mentioning that this can take five years.

You should know that while most major credit unions and banks offer a second chance account, not all of them do. It would help to get one from a nationwide bank. There are plenty of other options. For instance, you could also get your second chance account from an online bank, local credit union, or a regional bank.

It would help to do your due diligence before selecting an option because they do not all operate the same. Some may offer direct deposits, overdraft protection and will not charge you a monthly maintenance fee, while others may charge you for this.

It is worth mention that most second chance accounts will charge you a monthly fee, and it is unlikely that they will offer you a chance to waive it. It is also very likely that you will not have access to all the services that individuals with standard checking accounts have, such as direct deposit, access to checks, and overdraft protection. This is why it is essential to look around until you get a credit union or bank that offers you multiple features at a low cost.

Who Should Have a Second Chance Account?

This account may be an excellent choice for anyone who has had their bank account closed. Based on this, most financial institutions will not let you open an account with them. Specific systems could flag your name or even block your ability to get a new standard checking account. Therefore, when you find a second chance bank account, take the opportunity and ensure that you rebuild your banking history.

There are other alternatives you can opt for, like a prepaid debit card. However, your activity on the prepaid debit card is not reported to ChexSystems, which defeats the point. This option will also not improve your chance of getting your request to open a standard checking account approved when you try applying again.

Creating a Second Chance Bank Account

This process is pretty straightforward. It is pretty similar to opening a standard checking account. The first step will be to do some research and find out what your options are. Go over different banks and see what they offer until you find an account that works for you best.

Some of the vital factors you may need to consider are any fees or charges and the features they offer. Once you have settled on a bank, you will be working with. You will have to fill out the paperwork they give you. You will also have to include verification like a piece of mail or bill with your address, provide your physical address, and a scan of your identification.

Some accounts may require you to make an initial deposit, but there are second chance checking with no opening deposit. Therefore, ensure that you confirm this and confirm that you have enough funds if the account requires you to make an initial deposit. Usually, the online portal of your selected bank will walk you through the whole process.

It helps to choose an account that is right for you. Therefore, ensure that you do not settle for the first option you come across. It would also help to stop looking around after finding an account that offers everything you are looking for. It is essential to verify that the fees and services they offer work for you.

Second Checking with No Opening Deposit

Different banks have different offers, and some offer second chance checking with no opening deposit. You can check online to see if your bank of choice offers this option. Essentially, this means that you do not have to pay or deposit any money to open your second chance account. The steps of opening such an account are pretty straightforward and can be done in two steps online.

All you have to do is find a credit union or bank online with $0 deposit requirements. Next, you must fill out the provided online application on their website. That is all there is to it.

Advantages of Opening a Second Chance Account

Here are some advantages of opening a second chance account.

You get a chance to rebuild your banking history

One of the primary advantages of a second chance account is that it provides you with the opportunity of rebuilding your banking history. There are not many options that give you this opportunity. With financial discipline, you can rebuild your banking history in no time and be able to get your application for a checking account approved.

Your money is protected

If you initially had banking troubles, this is an opportunity of having a secure place to bank your money while also improving your ChexSystems report. It is worth stating that most second chance banks are insured by FDIC, meaning that your money is protected.

It is convenient

While you may have limited access to some features that you would access with a regular account, you can still enjoy plenty of benefits with a second chance account. For instance, you can easily monitor your account, and you also have access to online banking, scheduled bill paying to avoid missing your bills, and direct deposits.

Clear negative items off your report

This is one of the significant advantages of a second chance account. They not only provide you with a chance to rebuild your accounting history, but they also clean your negative reports. Once you are through with this, you can move back to using a standard account. Most banks offering second chance accounts will allow you to transfer your funds to a regular account after a specific period if you have a positive banking history.

What You Should Do When You Are Denied a Checking Account?

It is usually quite hard to open an account when you have been a victim of fraud, an error, or your history shows that you misused your account in the past. Some of the factors that can make it hard for you to open a new account include applying for multiple accounts within a time frame, abusing an ATM or debit card, not paying your overdraft balance, and bouncing checks.

Usually, when your account application process is denied for any of the listed reasons, the credit union or bank is often required to explain why. When they offer you this information, the best thing to do will be to get your ChexSystems report. It is worth mentioning that the law allows you to get a free copy of your ChexSystems report once every twelve months or whenever your checking account application is denied based on reasons found in your report.

You have to request to get your ChexSystems report, and once your request is received, you can expect to get a copy of your ChexSystems within five business days in the mail. When you receive your report, it will help to go over it to see if there is fraud or an error. Suppose you find either. You will have to dispute this with ChexSystems directly. Ensure you also address any other problems that may be on there.

For instance, if your application process was denied because you failed to pay your overdraft balance, pay it as soon as possible. You can negotiate to pay it at a discount, but it would be best to pay it in total if you can. You can ask the bank or the collection agency to take the negative item off your account once you have done this.

You should know that there are specific things you cannot remove from a ChexSystems report. In such a case, you will have to wait for the negative item to fall off your report in about five years naturally.

While a second chance account is not necessarily the best option, it is an excellent option for individuals denied a standard checking account. It would help if you also worked on building your credit since this can significantly help in improving your financial situation in general. Having a poor or negative banking history can be quite frustrating, even more so when trying to turn it around. However, with second chance banking, you get a chance to turn it all around, and with a positive record after a couple of months, you may qualify for a standard checking account.

Available in all 50 states: Alabama, Arkansas, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.