Navigating essential financial services like credit cards and checking accounts can be challenging if you have a poor credit history. But as more people face bad credit and bankruptcy, many banks are starting to accommodate these situations. If your credit score isn’t great, here’s a list of some banks that might give you a second chance:
National Banks
1. Wells-Fargo: Their “Opportunity Package” includes a checking account and up to three other services. While the details can vary by state, typically, there’s a $10 monthly fee if your balance is less than a daily average of $1,000 or if you don’t have a qualifying monthly direct deposit.
2. WoodForest National Bank: Although a bit more expensive, you can get a second chance checking account here. The monthly fee is $7.95 if you have direct deposits and $9.95 without them. There’s also a one-time setup fee of $9.
3. First American Bank: They offer a “Fresh Start” checking account for $9.95 per month, requiring a $50 deposit to open. After that, there’s no minimum balance needed.
4. Central Bank: They have a “Clean Start” checking account with an $8 monthly fee and a minimum balance requirement. Specific details are best obtained directly from the bank.
5. Liberty Savings Bank: Their “Clean Slate” checking account doesn’t have a minimum balance requirement. If you keep the account NSF (non-sufficient funds) free for 12 months, you can switch to a regular account. The monthly fee for this account isn’t listed on their website.
Local Banks
Several smaller local banks also offer second-chance checking accounts. The website Second Chance Checking Accounts provides a state-by-state list of banks with this service. If you’re not in the US, there are local options too. For example, Positive Home Loans is a good choice for Australians.
An Important Precaution:
If your account history includes NSF incidents, it’s probably noted on ChexSystem. Before you open a new account, clear any outstanding dues to clean up your record. While your name will still be on ChexSystem, showing that you’ve paid off debts can make it easier to open a new account.
Many banks are cautious about offering accounts to those with a history of financial mishaps. However, a few national and many local banks are willing to give you another chance. Once you open a new account, make sure to manage it well to eventually qualify for accounts with lower monthly fees.