Opening a new bank account can be challenging if you have a negative ChexSystems report. ChexSystems is a credit reporting agency that collects information about bank accounts. Specifically, it tracks negative information, including accounts closed due to unpaid fees and accounts with a history of frequent returned checks.
Second-chance bank accounts can help you get a fresh start financially. A second-chance account is designed for people who have been denied a bank account elsewhere. Read on to learn which banks offer the best second-chance accounts right now.
In our list, Chime and Varo, both stand out:
- Varo is great for rebuilding credit and allows unlimited withdrawals
- Chime allows you to deposit cash at over 47,000 retail locations
- Up to $400 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/
- APY disclosures
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 9/3/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
- Fee Policy
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
- Additional FDIC Insurance
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
- ATM Access
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
- Early Access to Direct Deposit Funds
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
- Overdraft Coverage
Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
- 0.90% Savings APY Boost
Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 09/03/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC.
- Earn 9x The National Average Rate
- Earn Up to $400 with Eligible Direct Deposit*
- Earn $50 or $400 when you sign up and set up eligible direct deposit*
- Limited Time Offer: New savings accounts earn a 0.70% APY boost to 3.80% for up to 6 months with eligible direct deposit*
- Earn 0.50% APY on Checking Balances
- Up to 2-day-early-paycheck*
- FDIC Insured up to $250k plus up to $3M in supplemental insurance*
- 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.
- Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
- Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network.
- SpotMe® on Credit is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, “”SpotMe””). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month.
- Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won’t cover non-card transactions, including ACH s, Pay Anyone s, or Chime Checkbook transactions. SpotMe terms and conditions.
- Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.
- Chime® Checking Account is required to be eligible for a Savings Account.
- Up to $350* with a new Chime account
- No monthly fees
- Get paid in up to 2 days early* with direct deposit
- 47k+ Fee-free ATMs~
- 24/7 live support
- Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Delays by the employer, payer, or their banks may result in delayed access to funds beyond our control.Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees.
- Up to $200 overdraft amount only available for a limited time to new users who sign up for a Current account through the applicable landing page and/or with the applicable code, as determined by Current in its sole discretion. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive a minimum of $200 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions.
- Paycheck Advance is offered by Finco Advance LLC, a financial technology company, not a bank and is for eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC. For more information, please refer to Paycheck Advance Terms and Conditions.
- Multi-featured payment account and debit card
- Get paid up to two days faster*
- 40,000 fee-free ATMs
- $0 minimum balance
- Easy-to-use app
- New Current Build secured credit card
- Banking services provided by Choice Financial Group, Member FDIC
- Fees apply to loans and out of network withdrawals & cash deposits.
- We give access to direct deposits from employer & government payers on the day we receive them, typically up to 2 days earlier than your scheduled pay date.
- Varo Advance (VA) is a small dollar line of credit. Initial limits range from $20-$250, work your way up to $500 over time. Fees range from $1.60 – $40 based on loan amount. Additional qualifications apply
- Open an online account with no monthly fees
- No monthly fees, no minimums, fee-free in-network ATMs and deposits. Optional services have fees*
- Set up a direct deposit today and get your paycheck up to 2 days early*
- Borrow up to $500 cash over time with a flat fee and 30 days to repay-no credit check*
- Member FDIC
Varo
Why we like Varo Bank Account
- Earn cash back on eligible purchases
- No monthly fees, overdraft fees, or cash deposit fees
- Build credit with a linked Varo Believe card
- Other banking fees may apply
- Savings accounts are offered separately
| Account types | Checking, online savings, high-yield savings |
| Min. opening deposit | None |
| Monthly fee | None |
| ATM network | 40,000+ fee-free Allpoint ATMs |
| Uses ChexSystems? | No |
Varo offers checking for all, with no ChexSystems report required. You can open an account even if you have bad credit or have been denied a checking account elsewhere. There’s no minimum deposit requirement and no monthly fees or overdraft fees to worry about.
You can’t build credit directly with a Varo second-chance account, but you could with the Varo Believe Card. You can qualify for this card if you have:
- A Varo checking account with money in it
- No outstanding balances due for Varo cash advances
- Incoming deposits of $200 or more over the last 31 days
All the activity in your Varo Believe account is reported to three major credit bureaus, helping you to establish or reestablish a good credit history. You can also build savings with Varo and earn competitive rates. If you need to add cash to your account, deposits are free at CVS locations.
Chime
Why we like Chime Fee-free Banking
- No credit check or ChexSystems check
- No monthly fees, overdraft fees, or foreign transaction fees
- No minimum balance required
- Chime doesn’t offer traditional paper checks
- Doesn’t hurt your credit score, but won’t help it either
| Account types | Second-chance checking and high-yield savings |
| Min. opening deposit | None |
| Monthly fee | None |
| ATM network | 47,000+ fee-free MoneyPass, Allpoint, and Visa Plus Alliance ATMs |
| Uses ChexSystems? | No |
Chime combines second-chance checking and high-yield savings in one convenient package. No credit check is required, and your ChexSystems report doesn’t affect your ability to get an account. You only need to be 18 or older, have a valid Social Security number, and a valid U.S. address to open a Chime second-chance account.
You don’t need to meet a minimum opening deposit or minimum balance requirement to get started. Chime doesn’t charge monthly fees, overdraft fees, or foreign transaction fees. You can earn a super-competitive 3.75% APY on savings balances, and Chime offers an automatic savings feature to help you get your finances back on track.
If you need to withdraw cash, you can access more than 47,000 ATMs fee-free. And if you need to deposit cash, you can do that at more than 85,000 retail locations. You can use your Chime debit card to make purchases online or in stores anywhere Visa is accepted.
What is a second-chance bank account?
Second-chance bank accounts are designed for people who have been denied an account because of a negative ChexSystems report or for any other reason. These accounts help people who might otherwise be excluded from traditional bank services stay connected to their money.
A second-chance account works like other bank accounts, in that you can use them to:
- Pay bills
- Make purchases with a linked debit card
- Get paid via direct deposit
- Deposit cash or checks
Differences between second-chance accounts and other checking accounts usually lie in the fees and range of features offered. You can find second-chance accounts at traditional banks, online banks, and credit unions.
If a client is working to rebuild their financial reputation, I will initially recommend the basics, such as: setting up an income and expense spreadsheet, manage the account balance by using alerts, pay bills on time, and avoid overdrafts.
Using the second-chance bank account to facilitate repairing or building credit is also something I recommend. I like secured credit cards but warn against overspending if the credit line is increased.
What are the benefits of a second-chance bank account?
Second-chance accounts offer several advantages, but they aren’t identical. Here’s what makes them attractive:
- Second-chance accounts give you the basic tools you need to manage your money, including a debit card and online/mobile banking access.
- They make banking accessible to people who need a fresh start financially, with no credit check required.
- Minimal fees and low opening deposit requirements reduce barriers to entry and make it easier to stay on top of your money.
- Some second-chance accounts offer built-in savings or credit-building features.
What are the limitations of a second-chance bank account?
While second-chance banking has plenty of positives, here are the main drawbacks to consider.
- You could still be denied for a second-chance account if the bank uses ChexSystems for approval.
- Second-chance accounts may offer fewer features or benefits than traditional checking accounts.
- Some second-chance accounts charge monthly maintenance fees, with few options for waiving them.
- You may need to spend time researching second-chance accounts to find a bank that offers them.
What is ChexSystems?
ChexSystems is a nationwide consumer-reporting agency that’s governed by the Fair Credit Reporting Act (FCRA). Banks can use this tool to decide whether to approve you for a new account. ChexSystems collects information about bank accounts, including reports of:
- Forcibly closed checking or savings accounts
- Returned checks reported to Certegy Payment Solutions LLC
- Inquiries that have been made about you by banks
- Check orders you’ve placed
ChexSystems doesn’t collect the type of information that would affect your credit scores, like bill payment history or credit usage. It also doesn’t report any accounts you close voluntarily, with no negative account history.
Negative information on your ChexSystems file can stay there for five years. If you owe a bank money and pay it off, the bank must report the payment to ChexSystems. However, that won’t remove the account history from your report until the five-year window closes.
Reasons you could be denied a bank account
You could be denied a bank account for several reasons; it all goes back to what’s in your banking history. Keep in mind that ChexSystems is just one company that reports negative banking history information; CrossCheck, Early Warning Services, and TeleCheck perform a similar function.
Common reasons for denial include:
- Unpaid negative balances resulting from fees, which lead to the bank closing your account
- Having a history of writing bad checks that your account balance couldn’t cover
- Owning a joint bank account with someone who has a history of unpaid fees or returned checks
Checking your ChexSystems report (or your reports with other bank credit reporting bureaus) before you apply for an account can help you spot potential roadblocks that might lead to a denial. You can request a free copy of your ChexSystems reports every 12 months, online or by mail.
What to do if you’ve been denied a bank account
If you’re denied a bank account, the first step is getting a copy of the credit report that was used to deny you. You can ask the bank which reporting bureau they used and then reach out to that organization to request a copy of your report.
Once you have your report:
- Review it to learn why you were denied a bank account
- Check to see how long the negative information will stay on your credit report
- Consider whether it might be worth it to pay off any outstanding fees or overdraft balances
From there, you can explore your banking options. Second-chance accounts might be at the top of your list, but you may also consider credit unions. Plenty of credit unions don’t require ChexSystems, but you’ll need to meet membership requirements in order to join.
If you still can’t get approved for a second-chance account, weighing your alternatives is the next step.
Second-chance bank account alternatives
It’s possible to manage your money without a checking account. Here’s what you might consider:
- Prepaid debit cards. Prepaid debit cards let you load money onto your card and spend it as you like. You can use a prepaid card to pay bills, buy groceries, or even shop online. The downside is that prepaid cards may charge reload fees or monthly fees that can eat into your balance.
- Payment apps. Mobile payment apps like Cash App and Venmo let you spend with a debit card, and you can add cash to your account at participating retailers. You don’t need a bank account to use them, and you could set up direct deposit to either app. However, both are frequent targets of scams, which could put your money at risk.
- Check cashing services. Check cashing services can cash checks for you even if you don’t have a bank account. You can walk away with money in hand, but you might pay a substantial fee. And if you need to pay bills, that might be hard to do if your billers don’t accept cash.
Bottom line? A second-chance checking account can make your life easier when you need to pay bills, buy things, or get paid.
FAQ
What do you need to open a second-chance bank account?
Generally, you need to be 18 or older and have a valid Social Security number to open a second-chance bank account. Banks may ask for a valid, government-issued ID. You’ll also need a minimum deposit if one is required.
Can a second-chance bank account help you qualify for a regular bank account?
A second-chance account could help you eventually get a regular bank account with responsible use. Remember that negative information stays on your ChexSystems report for five years.
What is the easiest bank account to get approved for?
No one bank account is the easiest to get approved for. However, Chime and Varo are two examples of accounts that you can qualify for without ChexSystems required.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Chime, Second Chance Banking With Chime
- Chime, Can I Send a Check Using My Chime Checking Account?
- Chime, How Do I Deposit Cash Into My Chime Account?
- Varo, Your Free Bank Account to Get Ahead
- Varo, Build Credit. The Easy Way
- Varo, What Is Second Chance Banking?
- ChexSystems, Frequently Asked Questions
- ChexSystems, Consumer Disclosure
- Consumer Financial Protection Bureau, Why Was I Denied a Checking Account?
- Consumer Financial Protection Bureau, List of Consumer Credit Reporting Companies
Related articles
About our contributors
-
Written by Rebecca Lake, CEPF®Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance.
-
Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.
-
Reviewed by Erin Kinkade, CFP®Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families.