Finding the best bank account – bad credit can be a real challenge. Let's Face it, sometimes our errant ways during low periods of our lives can lead to us making mistakes. I am no stranger to this and have made my own fair share of poor financial decisions.
The aftermath of pay-day loans, maxing out credit cards and generally being financial irresponsible in my younger years left me with a shocking credit score. This was a huge pain in the A$$ when it came to applying for credit and finding a bank that would take me on.
Fortunately there are some banks that won't hold these mistakes in the past against you. It is indeed possible to find a good bank account even if you do have a bad credit score. The aim of this article is to highlight some of the better ones from my own experience and research.
Best Bank account bad credit
It can be hard to get a debit card if you have bad credit, but there are ways around it. One way is by opening an account with another bank that may offer financing for small transactions or low-interest loans through their checking facility.
Tip: Make sure this option will work before applying.
If your current bank or credit union won't help out financially at all though they might simply approve someone else who does lend money! Another idea could involve making purchases online using paypal instead because many companies accept them as payment methods rather than cash which means no need to carry large amounts around when purchasing smaller items like clothing off ebay etc
Bank accounts for bad credit with overdrafts
1. Chime | My Top Pick
Chime is a fast-growing internet only financial company and my favourite second chance bank account. I love that it accepts nearly all customers who apply, even if you have bad or poor credit!
Top features include mobile deposits, direct deposit, online bill payment, and to top it all off NO monthly or annual fees. Chime also prides itself in having NO overdraft fees, there's and NO CheckSystems checks to worry about. Opening an account is incredibly easy. It takes less than 5 minutes and NO initial deposit required. This what I like best about Chime:
No Hidden Fees
Chime is the best alternative to banks. With no monthly or annual service charges, you can save money on fees for transactions at 60K ATMs and NO Foreign Transaction Fees!
Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts. You can transfer funds to friends or family members instantly without any additional apps – Chime Members as well! The company also provides notifications so you stay in complete control of your account no matter what circumstance arises. Misplaced cards? There's an option on our iOS App Store page where users will be able turn off a lost/stolen card using only this application alone–over 300K people have gave us 5 stars because they know how much peace comes from knowing everything” at hand “can actually get done.”
Chime paved the way by offering a “round-up” option. When using your Chime card on a purchase of $14.75, Chime gives you the choice of automatically rounding up to $15.00 and the remaining 25 cents goes in your free Chime savings account. Every penny helps and these savings can add up over time! Even better, Chime pays you 0.50% in interest on that savings account.
Chime is shaking up the traditional banking world with innovative features that don't just benefit customers, but also provide an overall better experience. For example: no more sneaky fees for overdrafts! With Chime's Fee Free Overdraft Program you can get your paycheck up to 2 days early and not pay any unnecessary charges when disaster strikes – like running out of money in sudden emergencies or even small purchases gone wrong (ouch). And if all this wasn’t enough already; they recently launched their Credit Builder card which offers 0%interest on balance transfers while removing both annual fee AND foreign transaction fees too boot- making them unbeatable options available right now
Bank Account with Overdraft No Credit Check
Banks offer checking accounts for people with bad credit. Banks understand that people make mistakes because they don't know much about their account. Sometimes people have bad credit and ChexSystems records both. A bank can report an unpaid negative account balance from an overdraft to ChexSystems, then later the bank can sell that debt to
As you can rebuild credit, banking privileges can get restored with a checking account for bad credit.
The SoFi Money Cash Management Account is offered by SoFi Securities LLC, a FINRA registered broker dealer. It's a checking account on steroids and we love that. Plus, they don't use ChexSystems to approve accounts. When you register and deposit at least $10 within 5 days, SoFi will deposit an additional $25 in your account immediately!
You get a debit MasterCard and a very slick smartphone app. You can make deposits, write checks, utilize electronic bill pay, and transfer money. There are no monthly fees or overdraft fees Plus, you earn interest on all the money in the account! The sign-up process can take less than a minute.
There is no minimum balance requirement and SoFi Money is available in all of the 50 states. In summary, with SoFi Money you'll get:
- No account fees
- Unlimited reimbursed ATM fees.
- Access to SoFi member benefits like career coaching and financial advising
- Automated bill pay
- Freeze debit card on-the-go
Guaranteed bank account with overdraft
We all know the feeling of not having enough cash to cover our expenses. But what about when bills and other unexpected debts arrive?
Unexpected expenses can come at any time, which makes it important for people who struggle with money flow every day – like I have in the past!
Sometimes you just want to know that after making your application, it's going to be approved. Let me tell you from experience: I have been in the position where my credit score has tanked and every single time an issuer tells us “no” -they mean IT!
But not all banks are like this one here…The ones who understand what we're going through really care about helping those of use trying get things back on track so even though our applications might come back as negatives now for anyone else but them-the result will always end up being a yes at their bank because they can see past numbers into people
Making an application is a big decision. It means you're pretty confident in the company, and that they will do right by your account if approved- which brings us to our next point: guaranteed overdrafts! There are more than enough options out there for every type of person (even those who need help with their credit).
Chime can provide you up to fee-free $100* or more of overdrafts.
What you need to know at a glance:
- Application process – it’s super easy and can be done in less than 2 minutes.
- Cost – it’s free to sign up.
- Eligibility criteria – You need to be a U.S. resident and you must be 18+. If you have $500, then you can get money from the bank each month..
- Wells Fargo: When you have less money in your account, there are some fees that are applied. This fee is $35 per item. You can only have 3 overdrafts per day.
- PNC Bank: The bank will charge you $36 for each item when you spend more than you have in your bank account. You can only have 4 items a day when your account is overdrawn. If the bank does not take money from other accounts, they will charge an extra fee of $7 per day for up to 5 days, or $98
- Bank of America: If you have a bank account, if your balance is low and you want to withdraw more money but there isn't enough in your account, then the bank might charge a fee. If you overdraw your account 4 times a day, then the bank will charge $35 each time..
- SunTrust Bank: If you take a lot of money from the bank, there is a fee. It costs $36 per time. Plus, you can only do this six times in one day.
- BB&T Bank. You could lose money and not know when the bank charges you extra. This is because we charge $36 each time we do an overdraft. But if the bank has to do this 6 times, they charge another $36. If something happens for 7 days, they will charge you one more time for a total of $144!
Bank Accounts that Don't Check Credit
Banks that don't check credit. If you have ever been in the situation where your trying to establish a bank account and you have a low credit score then here is a list of banks that don't check credit.
Here's a look at the 3 options for bank accounts that won't check your credit:
CIT Bank is an online-only bank with savings, checking, and loans for people. It was created in 2011 and they have no physical locations or ATMs. They offer free access to nationwide ATMs
- No monthly fees
- 0.40% APY (if requirements are met)
- Fully online bank
- $100 initial deposit required
- No branches. Customer service is only available through the app, by phone, or via email.
CIT Bank has a high deposit to start, but it offers the best interest rates. There are no opening fees or monthly fees, and there is no fee for transfers or wires.
Chime is a popular app with over 300,000 people who have given it five stars. Many people say they like being able to open a checking account online.
Owned by Green Dot Bank, GoBank does not require a credit check or ChexSystems report. You can have an account without having to go into physical locations. GoBank has many ATMs that are in the same network.
- You get a card for free with checking.
- Mobile banking.
- Overdrafts are not allowed. That means you don't have to worry about overdraft fees.
- You can avoid a $20 minimum deposit and a $2.95 sign up fee by opening your account online..
- If you are paid $500 a month, then there is no charge.
- $3 fee for out of network ATM withdrawals.
- If you lose your card, it will cost $5 to replace it.
- You can get cash out of a machine at participating stores. The fee is $4.95 per time.
GoBank is a bank without any physical branches. But, you can put money in the bank at the following places: 7-11 and Walmart. One downside is that these stores charge $4.95 for every deposit.
Guaranteed Approval Checking Account
Good credit, bad credit, or no credit?
The “smart money” usually goes to a bank with guaranteed approval. This means that the bank will open an account for anyone who can fog a mirror. They are giving you power over your money.
Banks that Don't Check History
If you have a blemished history, don't sweat it. Banks that do not check history are more likely to take people with bad credit or no credit. You might be surprised by how many banks will approve an account without checking your past credit history. Here are 7 that I have looked at and used in the past.
1. Chime | My Top Choice
2. Hatch Card | Best No ChexSystems Small Business Banking
3. SoFi Money | Runner Up
4. Varo Bank
Second Chance Bank Accounts
Want a bank or credit union? Here is a list of second chance banks and credit unions in every state.
Most banks don't offer second chance checking. Some community banks and credit unions do.
Some banks offer second chance checking accounts. They usually have monthly fees and other requirements. For example, the account holder might need to take a money management class or not be allowed to overdraw their account.
|Account||Minimum Deposit||Monthly Fee|
|Varo Bank Account||$0||$0|
|Chime Spending Account||$0||$0|
|Peoples Cash Solutions Second Chance Checking||$30||$4.95|
|Wells Fargo Clear Access Banking||$25||$5|
|Radius Essential Checking||$10||$9|
|Corporate America Family Credit Union Fresh Start Checking Account||$5||$10|
List of Banks That Don't Use Chexsystems
If you have bad credit, you can still open a checking account. Here are some ways to do it.
There are some banks that don't use ChexSystems to check new accounts. These banks are similar to bank accounts for bad credit but they don't use ChexSystems.
When a bank opens a checking account for a person with bad credit, they might use ChexSystems to check for new account openings. But they can also give people who have bad credit a fresh start. Other banks that do not use ChexSystems will never see your banking records, which might be better if you have had problems
When you search for a bank, look at their policies on the internet. Most banks that have a program to help people who have not had good credit before will tell you what type of check they do.
- Yes, you might be able to open a TD account without a minimum deposit and with bad credit.
- You do not need to pay monthly fees. You don't need to make a minimum deposit or balance. Interest is given when you put money in this account at TD Bank. You can take money out of ATMs and write checks without paying anything extra.
- The account features the following: Monthly fees: $12.95 Minimum deposit: $25 Minimum balance: $0
- What else you need to know: No-fee mobile banking and mobile deposit.
Woodforest National Bank
- Monthly fees: $6 to $10 Minimum deposit: $50 Minimum balance: None
- What else you need to know: When you have a balance, you can earn interest on it. Also, if you use ATM's from our bank, we will rebates the fees that ATM owners charge us for using their machine.
- Good To Know Some people might think that information in ChexSystems is like your credit report or FICO score. But it is different.
- ChexSystems is a company that keeps information about your banking history.
- They are not directly related.
4 United Bank
- In the checking account, there are monthly fees of $10. There is no minimum deposit. If you do not have a lot in your account, the bank will charge a fee for this. There is also no minimum balance requirement in this account. You can use online bill pay for an extra cost of $4.95 per month and
Southwest Financial Federal Credit Union
- The account does not have any monthly fees, a minimum deposit, or a minimum balance. You can bank online and on your phone. If you go over the limit of your account, you can link a savings account to help protect yourself from going into debt.
- A prepaid debit card is a card that you can put money on. You can use this when people want to buy something and they do not have any money. For example, if you walk into a store and do not have money, but instead of giving your credit card, you give the store your card so they can load the amount to
- Wells Fargo offers its Opportunity Checking to customers with bad reports. You can open a no-credit-check bank account at a local branch. This means you will have all the features of a basic checking account, including online banking.
- Other features include: Monthly fees: $10 (unless you make 10 debit card purchases, maintain a $1,500 daily balance or post a total of $500 in direct deposits per statement cycle) Minimum deposit: $25 Minimum balance: None What else you need to know: Comes with a Platinum debit card
- The bank does not look at your ChexSystems report or run your credit report to see if you are creditworthy. This means that you can open a checking account at the bank.
Credit Unions that Don't Use Chexsystems
ChexSystems is an organization that can give you a bad report. It is not always necessary to fix it, but if you want to open an account at a credit union, here are five good options that do not use ChexSystems.
If you or a family member is in the military, then Navy Federal Credit Union is a great option for them. It offers checking accounts, savings accounts, certificates of deposit (CDs), money market accounts and more.
If you are a member, you will have access to many branches and free ATMs. You can also get great service.
Navy Federal gives many loans with competitive rates. To get started, you need to find out if you are eligible.
America First Credit Union is a bank. It has free checking and savings accounts. Members live in Western states.
America First has a network of ATMs that are located in a lot of different places. It also provides various saving products with competitive interest rates.
Southwest Financial Federal Credit Union is in Dallas. It's possible to be a member of the credit union even if you are not there, because they have 100% virtual services. People can access their accounts through an account called “eBrand” and do money transfers and pay bills.
And you can use the mobile app to deposit checks, get alerts about your account, and view your bank statements. In addition, the credit union provides a lot of other services.
If you ever need to visit an ATM, Southwest Financial can help. You can use any of the 55,000 Allpoint ATMs.
Aspire Federal Credit Union is a good place to be. They have lots of ATMs, you can do banking on your phone, and they will help you anytime.
Plus, Aspire has partner companies to give discounts on their products. Members can get discounts from Sprint, TurboTax and SimpliSafe.
The SDFCU is a state group. It offers memberships to people who work in the Department of State. There are over 80,000 members from all over the world.
SDFCU has free checking, savings, youth accounts, and many lending products. The interest rates are good too. So if you qualify for membership at SDFCU then it is a good place to put your money.
To start, check if you are eligible. If you are, then give your address and Social Security Number to open the account.
Banks that Don't Use Chexsystems for Business Accounts
If you have a bad ChexSystems file, you can still get a business checking account.
When you apply for a business checking account, banks will usually run a ChexSystems report to see your history with checking and savings accounts. They do this to figure out if they should give you the account.
Unlike a credit report, a ChexSystems report shows when people misuse their checking or savings account. This could be when they write checks that bounce, or if they have to pay overdraft fees.
Most people can get approved for a bank account, but if you have something bad on your report it might be hard.
When you apply for a business checking account, banks will check your history. They will do this by running a report that looks at your history with other accounts in the past. This is like when people look at your credit when they are deciding if they want to give you a loan.
A different type of report than a credit report, the ChexSystems list only shows when someone had trouble with their checking or savings account. They might have bounced checks, overdraft fees, or they might have been forced to close the account.
A negative ChexSystems report does not mean you will not get a business bank account, but it might make it harder.
LendingClub Tailored Business Checking
- Your monthly fee will be $10. But you'll get it for free if you have an account balance of $5,000+.
- Transactions: Transactions are 100% fee-free.
- When you use our ATM, we will give you your money back for fees that other banks charge. There is no ATM fee when we do it.
- Available across the US.
BBVA Business Connect Checking*
- Monthly fee: $0.
- You can make up to five free withdrawals from the bank. After that, you will have to pay for each one. You can also deposit checks into your account in-branch for free up to two times a month. Other transactions are unlimited and free.
- ATM access: No ATM fees from BBVA (in or out of network). Third-party ATM fees waived within the Allpoint network.
- Available in: Alabama, Arizona, California, Colorado, Florida, New Mexico, Texas.
SunTrust Primary Business Checking
- The monthly fee of $15 is waived if you have a balance of more than $1,000.
- You can make 150 fee-free transactions. After that, you will need to pay 50 cents for each other transaction.
- ATM access: Fee-free access at over 2,000 SunTrust ATMs.
- Available in: Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington, D.C.
Online Checking Account NO ChexSystems, NO Opening Deposit
An online checking account has the same benefits as a checking account in-branch. You can deposit money, use your card at the ATM, withdraw money, and also get your balance.
There are many benefits:
- An online checking account can help you avoid getting into ChexSystems. You will be able to see your account at any time and know what is happening. If something happens, you will be able to fix it right away.
- Not having to maintain a large network of branches means banks can pass the savings onto customers. Other perks are often also available, like ATM reimbursements.
- Online banks offer higher interest rates and less fees than traditional banks.
5 Banks to Consider for Online Checking Account No ChexSystems
Oxygen is a company that offers checking accounts. They take less than 10 minutes to fill out an application. It has no ChexSystems and it is FDIC-Insured.
Oxgen Account Features
- This bank has no monthly fees. I don't need to make a minimum opening deposit or have a certain amount in my account. It is even open on holidays!
- You don't have to pay any fees for transactions.
- Some ATMs charge $40. But Allpoint® ATMs are free. There are more than 40,000 Allpoint® ATMs nationwide!
- 2 Day Early Direct Deposit.
- Earn cashback on everyday purchases. That means you get money back for some things you buy.
- With this card, you can choose to keep the card details hidden and send money to friends.
- Cell Phone Protection.
- Extended Warranty Protection.
- Hotel Theft Protection
- Auto Rental Collision Damage Waiver.
- Lost Luggage Protection.
The Acorns Spend Account is a checking account with a debit card that also saves and invests for you. We have learned from COVID-19 that many people want to save and invest for emergencies. Acorns helps you do this automatically.
With the Acorns Spend Account, there are no monthly or overdraft fees. You can use your debit card and get free ATM access nationwide. Your purchases will be rounded up to the nearest dollar, and any extra money will be put into savings for you! There is a $3 monthly fee for the Acorns Spend Account.
- You don't have to put money in your Acorns Spend account to open it. You can still use it if you don't put money there.
- No overdraft fees
- Unlimited free or fee-reimbursed ATM withdrawals nationwide
- Round up your money. The bank will invest the spare change for you.
- Digital direct deposit and mobile check deposit and check sending. In this modern day, you can use the internet. You can go to a website, find a company's information, click on “send me an email” or “send me a text message” and then your bank will send you money from that account into another one of your accounts
- Free bank-to-bank transfers
- Automated bill pay makes it easier to remember to pay your bills. You can set up the payments to happen automatically.
- FDIC-protected checking account to protect up to $250,000 plus protection from fraud.
Chime is a free account with no monthly fees, overdraft fees or a minimum balance. You do not need to give your ChexSystems information to open it.
Account management is made easy with daily balance updates, automatic transactions, and bill paying. The bank automatically creates a check and mails it for you at no extra cost.
- No monthly or overdraft fees
- No minimum balance requirements
- Daily balance updates
- Instant transaction alerts
- Get paid up to two days early with direct deposit ²
- Visa debit card
M1 Finance offers a checking account that is completely free. This account is FDIC-insured and has a debit card. There are two different types of checking accounts to choose from.
M1 Spending Account Features
- No minimum balance requirements.
- M1 does not charge any fees.
- Direct deposit available.
- Bill payment.
- Limited ATM fee reimbursements.
- If you have M1 Plus membership, you can earn 1% APY on your account balance and 1% cash back on all debit card purchases.
- If you open an account there is a $125 fee.
M1 Finance is good because you can buy stocks and invest money. M1 gives you advice on investing, but it does not charge fees for trades.You only need to invest a small amount of money in stocks with the M1 Plus Spend Account. You will earn more interest than you would with most banks, which offer interest rates that are less than 0.06% on balances.
If you have been denied a checking account because of past problems with ChexSystems or TeleCheck, this one is for you. You need to make a $30 deposit when opening the account.
- NO minimum balance
- NO transaction fees for check writing or deposits
- FREE Online Banking, Bill Pay, and Mobile Banking
- ATM/MasterCard Debit Card eligibility
Bank accounts for people with bad credit are available all over the US. There is no need to go to a check cashing store or pay fees for a prepaid debit card when these banking options are available.
Mistakes happen. Lots of people don’t know how to manage a checking account until they make a mess of it.
How to manage a checking account is not taught typically in school or by most parents. If you want to know more, head over to our Money Page which has plenty more articles that can help boost your financial know-how.
Who you bank with matters to your overall financial health. Managing a bank account responsibly in the long run can and will save you money and time. More importantly it is the first step in building a strong foundations for a financially independent future.