An A Plus account is a checking account designed for people who have had trouble with banks before

An A Plus account (also called an "A+ account") is a second-chance checking account offered by some banks and credit unions. It's built for people who have been denied a regular checking account, closed an account with a negative balance, or have a history of overdrafts and fees. The account lets you use basic banking services—deposits, withdrawals, bill pay, debit card—without the risk of overdraft charges piling up.

The core difference from a standard checking account is that A Plus accounts either don't allow overdrafts at all, or they limit how much you can go negative. Some versions link to a savings account to cover small shortfalls. You'll typically pay a monthly fee (usually $5 to $15), but you avoid the $30 to $35 overdraft fees that can turn a small mistake into a financial crisis.

These accounts are reported to ChexSystems, the banking history database that most banks check before opening an account. Building a clean history with an A Plus account can help you move to a regular checking account later.

Key Takeaways

  • A Plus accounts prevent overdraft fees by either blocking transactions that would go negative or limiting how far you can go into the red.
  • Monthly fees range from $5 to $15 depending on the bank or credit union, but you avoid overdraft charges that typically cost $30 to $35 each.
  • Your account activity is reported to ChexSystems, so responsible use builds a banking history that helps you move to a standard account later.
  • Some A Plus accounts link to a savings account to cover small shortfalls automatically, while others simply decline transactions that would overdraft.
  • Not all banks offer A Plus accounts; credit unions and smaller regional banks are more likely to have them than national chains.

How overdraft protection works in an A Plus account

The overdraft protection in an A Plus account comes in two main forms. The first is a hard block: if you don't have enough money, the transaction is declined at the point of sale or ATM. You'll know immediately that you can't spend it, and you won't be charged a fee.

The second form is a linked savings account. If you have money in a connected savings account, the bank automatically transfers enough to cover the shortfall. This works like a safety net—you avoid the declined transaction and the overdraft fee. However, you'll usually pay a small transfer fee (often $1 to $3) if the transfer happens, and you lose the money in savings.

Some banks also offer a small grace amount—say, $25—that you can go negative without a fee, but this is less common in A Plus accounts than in standard checking. Read the account terms carefully to know which protection method your bank uses.

Monthly fees and what you get for them

A Plus accounts charge a monthly maintenance fee because the bank takes on more risk and spends more time managing accounts with a history of problems. Fees typically range from $5 to $15 per month, though some credit unions charge less or waive the fee if you meet certain conditions (like keeping a minimum balance or setting up direct deposit).

For that fee, you get a debit card, online banking, bill pay, mobile deposits, and access to ATMs. Some banks limit ATM access to their own network, while others participate in shared branching networks that let you use ATMs at partner banks. Check whether the bank's ATM network covers places you actually go.

The fee is higher than a free checking account, but it's usually much lower than the cost of overdraft fees. If you overdraft a standard account twice a month, you're paying $60 to $70 in fees alone—more than four months of A Plus fees.

Who offers A Plus accounts and where to find them

A Plus accounts are not offered by every bank. Large national banks like Chase, Bank of America, and Wells Fargo do not have A Plus products. Instead, look at credit unions, community banks, and online banks that focus on second-chance banking.

Chime, LendingClub, and GoBank are online banks known for second-chance accounts. Local credit unions often have their own versions, sometimes called "fresh start" or "second chance" accounts. Call your credit union or visit their website and search for "second chance checking" or ask a teller directly.

You can also search the ChexSystems website for banks that report to them and offer second-chance accounts, though the list is not complete. The fastest way is to call a few credit unions or community banks in your area and ask what they offer for people with ChexSystems history.

What ChexSystems means for your account history

ChexSystems is a database that banks use to check your banking history before opening an account. When you open an A Plus account, the bank reports your activity to ChexSystems—both good and bad. If you keep the account in good standing (no overdrafts, no bounced checks, no negative balance), that positive history builds up over time.

After 12 to 24 months of clean activity, you can use that history to move to a standard checking account at a bank that doesn't require a second-chance product. The negative marks (closed accounts, overdrafts, bounced checks) stay on your ChexSystems report for five years, but they fade in weight as positive activity accumulates.

You have the right to see your ChexSystems report for free once a year. Visit chexsystems.com or call 1-800-428-9623 to request it. If there are errors, you can dispute them in writing.

Moving from an A Plus account to a regular checking account

The goal of an A Plus account is usually to rebuild your banking history so you can move to a standard account. Most banks will consider you for a regular checking account after 12 to 24 months of clean activity on an A Plus account. "Clean" means no overdrafts, no bounced checks, no negative balances, and no closed accounts with debt.

When you're ready to switch, apply at a bank that reports to ChexSystems and mentions your A Plus history. Some banks will approve you based on the positive record alone. Others may still decline you if the negative marks on your report are recent, but the longer you stay clean, the better your chances.

You don't have to close your A Plus account when you open a regular one. Some people keep both—using the A Plus as a backup or for a specific purpose. However, if you're paying a monthly fee on the A Plus, closing it once you have a free regular account makes sense.

Comparing A Plus accounts to prepaid cards and savings accounts

A Plus accounts are not the only option for people who can't get a standard checking account. Prepaid cards and savings accounts are alternatives, but they work differently.

A prepaid card lets you load money and spend it, but it doesn't build banking history because prepaid card companies don't report to ChexSystems. You also don't have FDIC protection (the federal insurance that protects deposits up to $250,000). Prepaid cards are useful for spending control, but they won't help you move to a regular bank account later.

A savings account is easier to open than a checking account, even with ChexSystems history, because banks see less risk. However, savings accounts have withdrawal limits (typically six per month), no debit card, and no bill pay. They're good for storing money but not for daily spending.

An A Plus account sits between these two: it builds banking history like a regular account, offers daily spending tools like a prepaid card, and costs less in fees than overdraft charges would.

Frequently Asked Questions

Will opening an A Plus account hurt my credit score?

No. A Plus accounts are reported to ChexSystems, not to credit bureaus like Equifax or TransUnion. Opening an A Plus account does not show up on your credit report and does not affect your credit score. However, if the bank reports a closed account with a negative balance to a credit bureau, that can hurt your score—so avoid letting the account go negative.

Can I get an A Plus account if I'm on ChexSystems?

Yes. A Plus accounts are designed for people who are on ChexSystems. Having a record of overdrafts, bounced checks, or a closed account with debt does not disqualify you from an A Plus account. That's the whole point—these accounts exist for people who have been denied elsewhere.

What happens if I overdraft an A Plus account?

It depends on the bank's rules. If the account has a hard block, the transaction is declined and you pay no fee. If it has a linked savings account, the bank transfers money and you pay a small transfer fee (usually $1 to $3). If you go negative beyond the linked account balance, you may pay an overdraft fee—read your account agreement to know the limit.

Can I use an A Plus account for direct deposit?

Yes. A Plus accounts accept direct deposit just like regular checking accounts. Some banks waive the monthly fee if you set up direct deposit, so ask when you open the account.

How long does it take to rebuild my banking history?

Most banks consider 12 to 24 months of clean activity (no overdrafts, no bounced checks, no negative balances) as enough to move to a regular checking account. The longer you stay clean, the easier it is to move. Negative marks stay on ChexSystems for five years, but they matter less as positive activity builds up.