You need credit for just about anything these days, including opening a checking account. For anyone that’s living with damaged credit, getting something as simple as a bank account to pay bills can be a challenge.
Luckily, there are banks that want your business regardless of what your credit looks like. Here are the top online bank accounts for bad credit that can provide you with essential bank functionality, as well as some added benefits.
Winners: Best No Credit Checks Bank Accounts
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Chime® is a fast-growing internet-only financial company and our top choice for an online bank account for bad credit.
And, best of all, Chime accepts almost all customers who apply. Even if you have bad or poor credit or have been blacklisted by ChexSystems or the credit bureaus.
Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts fees1, NO credit checks, and NO CheckSystems. Opening an account is super easy. It takes about 2 minutes and you don’t have to make an initial deposit. Here’s what we like:
No Monthly Fees
For the past couple of years, Chime’s huge growth has come at the expense of the big banks and their outrageous fees. And it’s one of the best features of a Chime account. There are no monthly or annual service charges, no minimum balance requirement, no foreign transaction fees, no fees at over 60,000 ATMs2, and no fees for mobile and online bill pay.
Deposit Cash for FREE at Over 8,500 Walgreens
Having access to a physical location for cash deposits is important to Chime members. And now it’s easy. All you have to do is go into a Walgreens store, hand the cashier the cash you want to deposit along with your Chime card, and the deposit will show up in your account immediately. This offers Chime members more walk-in locations than any other bank in the U.S. With over 78% of the country within 5 miles of a Walgreens, this is a significant benefit for millions.3
Smart Technology
Unlike big banks, 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 and family, Chime members or not… and they can claim their money instantly4 without any additional apps. The Chime app also has a series of notifications that you can turn on or turn off so you stay in complete control. Misplaced or lost your card? You can instantaneously turn off your card using the app. No wonder over 300,000 customers have given the app a 5-star review.
Customers First
Chime was one of the first to offer a “round up” option. If you use your Chime card on a purchase of $10.65, Chime gives you the option of automatically rounding up to $11.00 and putting the remaining $.35 in your free Chime savings account. And that adds up over time! Plus, Chime pays 0.50% Annual Percentage Yield (APY)5 in interest on that savings account.
If you use direct deposit with your Chime account, you can get your paycheck up to 2 days early6. And Chime is just saying no to big bank NSF charges with a fee-free overdraft program up to $200. Finally, Chime just recently launched their Credit Builder credit card with no interest and no annual fee. We don’t think there is another company innovating for their customers like Chime.
Lili was custom-made for freelancers and independent contractors who are operating as sole proprietors and single-member LLCs and we really like their offering. Lili aims to approve most accounts within 2-3 days, but some accounts are approved in 2-3 hours.
Lili offers a checking account and Visa debit card with no initial deposit or minimum balance requirement, no hidden fees, no credit check, and no ChexSystems. Lili makes getting your account easy! Here’s more of what we like:
- FREE business VISA debit card
- FREE (and very user-friendly) mobile app
- NO minimum balance
- NO NSF charges or fees
- NO credit check or ChexSystems
- Receive direct deposit funds 2 days earlier than many banks
- Mobile check deposit
- Unlimited fee-free transactions
- Takes 3 minutes to apply
Application Process
You can set up an account online. If you’re a freelancer, you should receive approval and account access almost instantly. All others (Sole Proprietor, Single-Member LLC, Multi-Member LLC, General Partnership, Limited Liability Partnership, or S Corp) can take a couple of days to get approved. You can fund your account using a mobile check deposit, direct deposit, ACH transfer, or by linking your Venmo, PayPal, or Cash App account.
For many people, having access to a local bank branch is paramount when setting up a checking account. With over 15,000 ATMs and 4,700 branches across the country, the Chase Secure Banking account might be the perfect fit.
Here are some of our favorite features with this account:
- NO credit check
- NO ChexSystems
- NO minimum deposit to open
- NO overdraft fees
- FREE access to over 15,000 Chase ATMs
- FREE Chase Online Bill Pay
- FREE money orders and cashier’s checks
Highly Rated Mobile App
Available for iOS and Android, the Chase Mobile app offers 24/7 access to your account. The app is highly rated, earning 4.8 stars out of 5 on the App Store and 4.4 stars out of 5 on Google Play.
You can transfer funds, deposit checks, send money with Zelle, set up account alerts and notifications, and lock your card if it’s been lost or stolen.
The app also has incredibly helpful budgeting tools, personalized insights, and the ability to check your credit score for free.
How The Account Works
Opening the Chase Secure Banking account is easy. They verify your name, address, and social security through Experian, but don’t pull a credit report or credit score. Chase doesn’t use ChexSystems for this account, either. Account approval is immediate, there’s no opening deposit requirement, and you’ll receive your Chase Secure card within a matter of days.
Chase doesn’t offer overdraft services with this account as you can only spend the money you have available and the account does not include paper checks. You should also know that using non-Chase ATMs can cost from $3.00 to $5.00 per transaction.
Chase Secure Banking carries a $4.95 monthly service fee that cannot be waived. But combined with all the free services and the $100 cash bonus when you use the card for 10 purchases within 60 days, the monthly fee doesn’t pose a problem for most customers. And, you’ll have peace of mind with Chase’s Zero Liability Protection if you detect and report unauthorized transactions.
Banking With A Leader
Chase claims to be involved with 40% of Americans in some way or another. There can be comfort in size, reach, and stability. Chase has all of that and the assurance they will be there for a long, long time.
If you’ve wanted to bank with Chase and wondered if you’d qualify, we think you’re going to be really happy with the Chase Secure Banking account.
Current is another web-only national bank that has some really great features… and has become one of the fastest-growing checking accounts for consumers who want it all without all the costs and hassles.
Why are we featuring Current on our website? It’s simple: they don’t use ChexSystems or your credit report to open a new account. Sign-up takes about 2 minutes and Current has extremely high acceptance rates. But what’s really cool are the incredible features offered with this account:
- NO minimum balance
- NO deposit required to open an account
- NO overdraft fees when you overdraw by up to $100 with Overdrive™
- NO fees at over 40,000 ATMS in the U.S.
- Get your paycheck up to 2 days early with direct deposit
- Earn 4.0% interest on your balance up to $6,000
- Earn points for unlimited cashback at participating retailers
- Send money instantly for free
- An elegant but simple smartphone app
- 24/7 member support
Current offers a really unique service it calls Gas Hold Removals. What’s a gas hold? Some gas stations may apply a hold from $50 to $100 when you use a debit card to pump gas. If you only pumped $10 of gas, but the gas station places a $100 hold on your funds, you won’t have access to the $90 difference for up to 3 business days!
The Current debit card will immediately refund the hold so you have access to all your funds. We haven’t found that benefit anywhere in the marketplace.
Here’s what’s really important, though. Deposits are FDIC-insured up to the highest possible amount allowed: $250,000. We love the features, we love the smartphone app, and we love Current. That makes us think you’ll love them too.
U.S. Bank is the fifth largest bank in the country with the majority of its 2,000+ branches located in 26 states mostly located in the west and midwest.
When you open a U.S. Bank Smartly® Checking account and a Standard Savings account, you can earn a cash bonus of up to $1,000. This is one of the most generous checking and savings offers we’ve seen.
U.S. Bank Smartly® Checking at a Glance
- A U.S. Bank Visa debit card
- Online banking and bill pay
- Mobile banking with mobile check deposit
- Send money with Zelle®
- Access to U.S. Bank Smart Rewards™ to reap additional benefits
- No NSF charges for overdraft balances under $50
- No fees at U.S. Bank ATMs
- No surcharge fees at 40,000 MoneyPass ATMs
- Member FDIC
States Where U.S. Bank is Available
If you live in one of the following 26 states where this account is available, you can apply online: AR, AZ, CA, CO, IA, ID, IL, IN, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, UT, WA, WI, WY.
Account Details and Costs
To get an account, you’ll need to make an opening deposit of $25. The monthly service fee is $6.95 but can be waived if you maintain a minimum balance of $1,500 or by having a minimum monthly direct deposit of $1,000. You can also avoid the monthly fee if you are 24 and under, 65 and over, or a member of the military or qualify for one of the four Smart Rewards tiers (Primary, Plus, Premium, or Pinnacle).
Earn Serious Bank from U.S. Bank
You can earn up to $1,000 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account and complete qualifying activities. The offer is subject to certain terms and limitations and is valid through October 31, 2023. Member FDIC.
Banking Made Easy
The U.S. Bank Smartly® Checking account comes with one of the best mobile apps on the market. Over one million customers have given the app an overall rating of five stars. You can manage your entire account from a computer or your smartphone.
U.S. Bank repeatedly makes the list of one of the best banks in the country.
Want to earn cash back on Walmart purchases – up to $75 each year? Then you might love the Walmart MoneyCard. It’s a debit card that has some strong features such as cashback on Walmart purchases, overdraft protection, interest on your savings, and a mobile app that lets you track your purchases and deposit funds into your account.
Our favorite features include:
- Easy approval: no ChexSystems or credit check
- No initial deposit is required and there are no monthly minimums
- Deposit cash for free at any Walmart store and it shows up 10 minutes later
- Deposit checks using the Walmart MoneyCard smartphone app
- Easily request multiple cards for family use1
- Manage your account from your computer or the smartphone app
- 3% cashback on Walmart.com purchases, 2% cashback for Walmart fuel stations, and 1% cash back for use in-store2
- Earn 2.00% APY on money you set aside in a free savings account3
- With qualifying direct deposits4, you can opt-in and enjoy overdraft protection of up to $200 on eligible purchases5
- No monthly fee when you direct deposit $500+ in the previous monthly period. Otherwise, there’s a $5.94 monthly fee.6
The Walmart MoneyCard is available in all 50 states, Washington D.C., and Puerto Rico.
What Is a Bank Account For Bad Credit and How Does It Work?
A bank account for bad credit is often called a second chance bank account, and it’s a checking or savings account for an individual with bad credit. Most major banks will pull a credit report for new customers opening an account, and if their credit isn’t up to par, they are denied an account. This is often done to mitigate the risk of bounced checks, but it can be frustrating.
A no credit checks bank account operates just like traditional banks, but they have more lenient requirements for getting an account opened. You’ll need to comply with federal regulations regarding proof of identity and other disclosures, but in the end, your credit will not be a factor in whether or not you’re allowed to open an account.
9 Things to Look For in a No Credit Checks Bank Account
For those looking for bank accounts with bad credit, there are going to be a few different options for you to consider. Here are the top things you should look for in your next no credit checks bank account. You might be surprised at what one bank offers over another.
1. Fees
This is arguably one of the biggest things to take into account when shopping around. Even though you’re looking for a no credit checks bank account, you shouldn’t be paying any sort of fees for your banking service.
If you want a bank with the lowest fees, look for the bank that does not charge fees for the following:
- Low balances
- Overdrafts
- Exceeding the “maximum” number of card transactions in a month
2. Deposit Simplicity
If your bank is going to be largely online, you need to be absolutely sure they have a solid and reliable mobile deposit functionality. We all need to deal with paper checks occasionally, and if you can just snap a picture of both sides with your camera and upload it for a deposit, it makes life a whole lot easier.
3. Funds Availability
The funds’ availability is something that is starting to become relatively standard across online bank accounts for bad credit. Some banks will clear ACH paycheck deposits up to 48 hours sooner than other banks.
This means if you usually get paid on Fridays at 12:01 am, you could wake up Wednesday to that deposit. For those that live on tight budgets, these early-access policies can be important criteria for someone looking at new banks.
4. ATM Network
Most online banks feature robust ATM networks. ATMs that are “in-network” are usually the ones that you can use for no fees, which can save you a ton if you use ATMs with any frequency.
Your bank may also offer an ATM fee refund as a promotion for a while or will give you a certain allowance of refunded transactions each month. See what perks are going to be best in the long run, when you may not be in-network or near any fee-free location.
5. Interest Rates
Let’s face it, nobody puts their money in a savings account to grow their wealth. However, if your new bank offers significantly higher savings or checking account interest rates, it can help the money you access regularly fight inflationary decay. It won’t be enough to retire on, but it might help offset a few months of the rising cost of living.
6. Mobile & Online Options
This is the age of everything digital, and that goes for your new bank accounts, and most of your bill payments as well. Be sure your next potential bank has a plethora of online, mobile, and overall digital options for accessing your account.
You should be able to safely and securely access your account information from a smartphone, as well as be able to accomplish more complex tasks on a desktop version of their site or app.
7. Minimum Deposit & Balance Requirements
It’s pretty standard for a no credit checks bank account to require that you pay an opening deposit. With that being said, you should not have to keep a certain minimum balance in your account.
The online bank accounts for bad credit that we recommend may require an opening deposit which can be found in the description, but they will not charge you fees as long as your balance remains positive.
8. Customer Service Ease & Results
Many online bank accounts for bad credit use highly intelligent AI for their frontline customer service interactions. While this may already sound like it’s going to be frustrating, it can be a highly effective interface that gets you the information you need in milliseconds.
When you have problems at 3 am, you should be able to get help from someone, somewhere, no matter if they are human or digital. Your next bank should have some sort of 24-hour customer service option.
9. Brick-And-Mortar Locations
It won’t happen often, and some can go decades without setting foot in a branch, but others need a physical branch or even a partner bank that they can visit.
In the case that your potential bank doesn’t have physical locations or partner banks that allow you to visit personally, see what alternatives your potential bank does offer. If you wanted to speak to someone about investments, for example, do they offer virtual consultations, or simply not offer the service? For more routine needs of cashier’s checks and similar services, do they have a digital option? These are important things to consider.
Are Second Chance Banks Better Than Conventional Banks?
While they aren’t “better” per se, they are much easier to get an account with if you have bad credit. Sometimes what you need to get back on your feet is an actual bank account, and even if you’ll only have a paycheck in there until bills are paid, having the account is a security blanket itself.
Second chance bank accounts do come with some limitations, but in most cases, the benefits far outweigh those limitations. One such drawback is that in the case of most online second chance banks, they only offer checking, savings, and sometimes credit card services.
If you want to apply for a personal loan, home equity line of credit, or similar financial products, you’ll need to work with a bigger bank. This is the same for things like CDs or brokerage accounts, which are generally not among the financial products offered by online banks.
Frequently Asked Questions About Bank Accounts With Bad Credit
Here are some of the most often asked questions and answers when it comes to getting a no credit checks bank account.
Can I open a checking account with bad credit?
Yes, you can open a checking account with bad credit. However, you may have limited options as some banks may deny your application. You may also have to pay higher fees or deposit a certain amount of money to open the account.
How can I find a bank that will approve my checking account application with bad credit?
Luckily, the hard work of searching has already been done and we have provided you with some of the top contenders for the best no credit checks bank accounts above. These are all offered nationwide.
Can I still use checks if I have bad credit?
Yes, you can still use checks with a checking account, regardless of your credit score. However, you may have to pay a higher fee for check usage or overdrafts.
How can I avoid overdraft fees with bad credit?
You can avoid overdraft fees by carefully monitoring your account balance and setting up alerts for low balances. You can also opt out of overdraft protection, which can save you money if you accidentally overdraw your account.
Can bad credit affect my ability to get a debit card?
Some banks may require a credit check before issuing a debit card, but it’s not a common practice. As long as you have a checking account, you should be able to get a debit card.
How can I improve my credit score with a checking account?
While a checking account won’t directly impact your credit score, it can indirectly help by showing that you can manage your finances responsibly. By avoiding overdrafts and maintaining a positive balance, you may be able to build a positive banking history, which can be helpful when applying for credit in the future.
Conclusion
If you’ve had problems getting a traditional checking account due to bad credit, there are still options out there for you. Peruse and share our list of the best checking accounts for those with bad credit to anyone you think could benefit from it.
Chime is a financial technology company, not a bank. Banking services and debit card issued by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1Eligibility requirements apply. Overdraft only applies to debit card purchases and cash withdrawals. Limits start at $20 and may be increased up to $200 by Chime. See chime.com/spotme.
2Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Cash deposit or other third-party fees may apply.
3Customers are limited to three $1,000 cash deposits at Walgreens each day and $10,000 each month.
4Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. See your issuing bank’s Deposit Account Agreement for full Pay Friends Transfers details.
5The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of May 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
6Early 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.
1Family Accounts: Activated, personalized card required. Other fees apply to the additional account. Family members age 13 years and over are eligible. Limit 4 cards per account. See Deposit Account Agreement for details.
2Cash back, up to $75 per year, is credited to card balance at end of reward year and is subject to successful activation and other eligibility requirements. Redeem rewards using our website or app. You will earn cash back of three percent (3%) on qualifying purchases made at Walmart.com and in the Walmart app using your card or your card number, two percent (2%) at Walmart fuel stations, and one percent (1%) on qualifying purchases at Walmart stores in the United States (less returns and credits) posted to your Card during each reward year. Grocery delivery and pickup purchases made on Walmart.com or the Walmart app earn 1%. For the purposes of cash back rewards, a “reward year” is twelve (12) monthly periods in which you have paid your monthly fee or had it waived. See account agreement for details.
3Interest is paid annually on each enrollment anniversary based on the average daily balance of the prior 365 days, up to a maximum average daily balance of $1,000, if the account is in good standing and has a positive balance. 2.00% Annual Percentage Yield may change at any time before or after account is opened. Annual Percentage Yield is accurate as of 3/1/2022.
4Direct Deposit: Early availability of direct deposit depends on timing of payroll’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. Make sure the name and social security number on file with your employer or benefits provider matches what’s on your Walmart MoneyCard account exactly. We will not be able to deposit your payment if we are unable to match recipients.
5Opt-in required. $15 fee may apply to each eligible purchase transaction that brings your account negative. Balance must be brought to at least $0 within 24 hours of authorization of the first transaction that overdraws your account to avoid the fee. We require immediate payment of each overdraft and overdraft fee. Overdrafts paid at our discretion, and we do not guarantee that we will authorize and pay any transaction. Learn more about overdraft protection.
6No monthly fee with qualifying direct deposit, otherwise $5.94 a month. Waived when $500+ is loaded in the previous monthly period. First monthly fee occurs upon first use, the day after card activation or 90 days after card purchase, whichever is earlier.
