Which banks offer second chance checking accounts
Chime, LendingClub, Varo, and Axos Bank all offer checking accounts without traditional credit or banking history checks. Credit unions in your area may also offer second chance accounts — call your local branch to ask. The catch is that most banks that take customers with poor or no banking history charge monthly fees ($5 to $15), require direct deposit, or both. A few have no monthly fee if you meet deposit minimums or set up direct deposit.
The banks listed below all report to ChexSystems or Early Warning Services, which means your account history will be recorded. That matters if you close the account and want to open another one later — a bad record with one bank can make it harder to open an account elsewhere. Some banks on this list also report to credit bureaus, which can help rebuild your credit if you use the account responsibly.
Second chance accounts are not the same as prepaid cards. A prepaid card is not a bank account, does not build banking history, and does not help you rebuild credit. A second chance checking account is a real bank account with a debit card, online access, and the ability to set up direct deposit and bill pay.
Key Takeaways
- Chime, LendingClub, Varo, and Axos Bank offer checking accounts without requiring a credit check or prior banking history.
- Most second chance accounts charge monthly fees between $5 and $15, though some waive the fee if you set up direct deposit or maintain a minimum balance.
- Your account activity will be reported to ChexSystems or Early Warning Services, so a closed account in bad standing can affect your ability to open accounts at other banks.
- Some second chance accounts report to credit bureaus, which means responsible use can help rebuild your credit score over time.
- Credit unions often offer second chance accounts with lower fees than national banks — contact your local branch to ask about their options.
Online banks with second chance checking
Chime does not check ChexSystems and has no monthly fee. You need direct deposit to open the account, and the deposit must hit within 45 days of opening. Chime also offers early direct deposit, which means your paycheck can arrive up to two days before your employer sends it. Chime reports to credit bureaus, so on-time use builds your credit history.
LendingClub (formerly Radius Bank) offers a second chance checking account with no monthly fee and no minimum balance. It does check ChexSystems but will still open an account for people with a history of overdrafts or closed accounts. LendingClub reports to credit bureaus. You do not need direct deposit to open the account, though the bank offers it.
Varo has no monthly fee and no minimum balance requirement. Varo does not check ChexSystems at all, which makes it one of the easiest banks to open an account with if you have been denied elsewhere. Varo reports to credit bureaus and offers early direct deposit. The bank also offers a savings account with a higher interest rate if you set up direct deposit.
Axos Bank offers a second chance checking account called the Rewards Checking Account. There is no monthly fee if you set up direct deposit or maintain a $1,500 minimum balance. If you do neither, the fee is $10 per month. Axos checks ChexSystems but approves people with prior banking problems. The bank reports to credit bureaus.
Traditional banks and credit unions with second chance options
Many regional and national banks offer second chance accounts, though they are not always advertised under that name. Chasing Bank, Bank of America, and Wells Fargo all have programs for people with banking history issues, but availability and terms vary by branch and state. Call your local branch and ask for a "second chance account" or "fresh start account" — the names differ by bank.
Credit unions are often the easiest route if you live near one. Credit unions typically charge lower fees than national banks and are more willing to work with people who have been denied elsewhere. You usually need to join the credit union first (membership requirements vary — some are based on where you work or live, others are open to anyone in your area). Once you are a member, ask about their second chance checking account or basic checking account for people new to banking.
To find a credit union near you, search the CO-OP Network or Allpoint directories online, or call 211 and ask for local credit unions. Many credit unions also participate in shared branching, which means you can do basic transactions at other credit unions even if you do not have an account there.
What to expect when you open a second chance account
The application process is usually online or in person and takes 10 to 15 minutes. You will need a government-issued ID, your Social Security number, and proof of address (a utility bill, lease, or bank statement). Some banks ask for a phone number and email address. Most banks approve or deny you the same day.
Once your account is open, you will get a debit card in the mail within 5 to 10 business days. Some banks offer a temporary digital card you can use right away while you wait for the physical card. Your account will be reported to ChexSystems or Early Warning Services immediately, so if you close the account or overdraft it, that record will follow you to other banks.
If the bank requires direct deposit, the deposit must come from an employer or government agency — transfers from another bank account do not count. Direct deposit usually takes one to two business days to set up after you provide your account number to your employer or benefits administrator.
Fees and terms to compare
| Bank | Monthly Fee | Minimum Balance | Requires Direct Deposit | ChexSystems Check |
|---|---|---|---|---|
| Chime | $0 | None | Yes | No |
| LendingClub | $0 | None | No | Yes |
| Varo | $0 | None | No | No |
| Axos Bank | $10 (waived with direct deposit or $1,500 balance) | $1,500 (to waive fee) | No (but waives fee) | Yes |
Beyond the monthly fee, watch for overdraft fees. Most second chance accounts charge $25 to $35 per overdraft, though some banks like Chime and Varo offer overdraft protection that declines transactions if you do not have enough money, so you never overdraft at all. That sounds safer, but it can also mean your card gets declined at the checkout, which is embarrassing and inconvenient.
Ask about ATM access before you open the account. Online banks like Chime and Varo offer free ATM access through their networks (Chime uses Allpoint, Varo uses Allpoint and MoneyPass). Traditional banks and credit unions usually have their own ATM networks, but you may pay a fee to use another bank's ATM. Some credit unions waive out-of-network ATM fees if you maintain a minimum balance.
What happens after you open a second chance account
Use your second chance account like any other checking account. Set up direct deposit if the bank requires it or if you want to waive the monthly fee. Pay your bills on time, do not overdraft, and keep a small balance if you can. After 6 to 12 months of responsible use, you may be able to move to a standard checking account with better terms, or you may find that other banks will now open accounts for you.
If you want to rebuild your credit, use your debit card for small purchases and pay off the balance immediately. Some second chance accounts also offer a savings account or a credit-builder loan — ask your bank about these options. A credit-builder loan is a small loan (usually $300 to $1,000) that you repay over a few months, and the bank reports your payments to credit bureaus. It costs money in interest, but it is one of the fastest ways to build credit if you have no history.
If you close your second chance account, do it cleanly. Withdraw all your money, make sure there are no pending transactions, and confirm the account is closed. If you leave the account open with a negative balance, the bank will report it to ChexSystems, and you will have a harder time opening an account elsewhere.
Frequently Asked Questions
Can I open a second chance account if I was denied by another bank?
Yes. Banks like Varo and Chime do not check ChexSystems, so a denial elsewhere will not affect them. LendingClub checks ChexSystems but still approves people with prior banking problems. If you were denied, start with Varo or Chime, or call a local credit union and ask about their second chance account.
Do I need a job to open a second chance account?
Not always. Chime requires direct deposit, which usually means a job, but it also accepts government benefits like Social Security or unemployment. LendingClub, Varo, and Axos do not require direct deposit to open the account, though they may offer lower fees if you set it up. Credit unions rarely require direct deposit.
Will a second chance account help me rebuild my credit?
Only if the bank reports to credit bureaus, and only if you use the account responsibly. Chime, LendingClub, Varo, and Axos all report to credit bureaus. Simply having the account does not build credit — you need to use it and avoid overdrafts. A credit-builder loan through the same bank works faster.
What if I overdraft my second chance account?
You will be charged an overdraft fee ($25 to $35 depending on the bank) and the bank will report it to ChexSystems. If you overdraft multiple times, the bank may close your account. Some banks like Chime and Varo decline transactions instead of allowing overdrafts, so you never pay a fee but your card gets declined at checkout.
Can I switch to a regular checking account later?
Yes. After 6 to 12 months of responsible use, you can ask your bank to move you to a standard account, or you can open an account at another bank. Your second chance account history will be reported to ChexSystems, so banks will see that you used it responsibly. This makes it much easier to open accounts elsewhere.