FEATURED PARTNER OFFER
Axos Bank Rewards Checking
Annual Percentage Yield
Accurate as of 8/09/2023
Up to 3.30%
on balances up to $50,000
Minimum Deposit Requirement
$50
Monthly Maintenance Fee
$0
On Axos Bank's Website. Use Promo Code "AXOS300" by 06/30/2024 for an up to $300 bonus. Terms apply
Accurate as of 8/09/2023
Up to 3.30%
on balances up to $50,000
$50
$0
Best Bank Accounts for Bad Credit in April 2024
Many financial institutions, including traditional banks, online banks and credit unions, offer accounts with flexible requirements for folks who’ve had money trouble in the past. Namely, they don’t use ChexSystems to screen your banking history.
The best bank accounts for bad credit are easier to open than most because they don’t use ChexSystems, and they offer a combination of low fees and practical features for saving and accessing your money. We compared the most widely available accounts that met our criteria to come up with this list of the top bank accounts for bad credit.
Annual percentage yields (APYs), account details and fees are accurate as of July 4, 2024.
Best for Combined Checking and Savings
SoFi Checking and Savings Account
Annual Percentage Yield
Up to 4.60%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On SoFi's Website
Editor's Take
We picked SoFi Checking and Savings because it combines the best features of savings and checking accounts with competitive interest rates and convenient spending features. It’s a solid bank account for people who want more than just the basics, and it does not use ChexSystems to review applications.
Along with a chance to earn a 0.50% APY on checking and 4.60% APY on savings if you set up direct deposit or by depositing $5,000 or more every 30 days. Customers who don’t mee this criteria earn 1.20% APY on savings balances, you’ll pay no account fees and have fee-free access to more than 55,000 ATMs. Other potential benefits of this account include cash-back rewards on eligible debit card purchases and the ability to receive direct deposits up to two days early. SoFi often offers sign-up bonuses as well—a perk not always found in second chance banking. Don’t let bad credit stop you from applying if this seems like a good fit.
Read our full SoFi Bank Review.
Pros & Cons
- Competitive APY
- Few fees
- Early direct deposit
- Can earn cash-back rewards using SoFi debit card
- 55,000+ fee-free ATMs
- Must sign up for direct deposit or deposit $5,000 or more every 30 days to earn the highest interest rate
- No stand-alone checking account
Details
To qualify for the $300 bonus, you must open a new SoFi Checking and Savings account and receive at least $5,000 in direct deposits by June 30, 2024, or within 25 days of receiving your first direct deposit, whichever comes first. So, if your first direct deposit is on June 1, you’d have until June 26 to reach the $5,000 minimum. But if your first direct deposit is on June 15, you’d have until June 30, which is the overall deadline for the promotion.
SoFi’s checking and savings account has no monthly fees or overdraft fees. You’ll earn a 4.60% APY on your savings balance, and direct deposits hit your checking account up to two days early. You can also earn up to 15% cashback on SoFi debit card purchases.
A direct deposit is an electronic deposit you receive from your employer, the government or a benefits provider. You’ll receive your bonus within seven business days after your direct deposit window closes.
Disclosure
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Best Credit Union Bank Account
Navy Federal Credit Union Free EveryDay Checking
Annual Percentage Yield
0.01%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
0.01%
$0
$0
Editor's Take
We picked the Navy Federal Credit Union Free EveryDay Checking Account because it has no monthly fees and no balance requirements, and it uses a screening system separate from ChexSystems to filter applications. With an APY of just 0.01%, it’s not ideal for saving, but it’s a solid option for everyday use and includes three overdraft protection choices. If you’ve overdrawn accounts in the past, overdraft protection can help you avoid negative marks and fees of this kind in the future.
You’ll be able to transfer or receive money using Zelle, withdraw cash for free at over 30,000 ATMs or Navy Federal branches and get basic checks with this account. Consider this option if you prefer credit unions or in-person banking and qualify for membership with the credit union (see Details).
Read our full Navy Federal Credit Union Review.
Pros & Cons
- No minimum opening deposit or balance requirements
- No monthly fee
- Branch banking access
- Member benefits, including discounts on insurance, car rentals and more
- Low APY
- Limited branch locations
- Membership restrictions
Details
You’ll need to join Navy Federal Credit Union to open an account. Eligibility is open to service members, veterans of any branch of the armed forces, Department of Defense employees and immediate family members or household members of these individuals. Applications are accepted online, over the phone and at Navy Federal branches.
Best for No Fees
Capital One 360 Checking Account
Annual Percentage Yield
0.10%
Minimum Deposit Requirement
Monthly Maintenance Fee
$0
0.10%
$0
$0
Editor's Take
We chose the Capital One 360 Checking Account as one of the best bank accounts for those who want to avoid ChexSystems because it won’t cost you a penny to use. This no-fee checking account won’t charge any one-time or monthly service fees, and there are no foreign transaction fees when you travel. Capital One also makes it easy to add, move and access funds.
You can withdraw cash at more than 70,000 fee-free ATMs or in person at Capital One branch and Cafe locations. You’ll also be able to add cash to your account at any CVS, Walgreens or Duane Reade by Walgreens location, and the 360 Checking Account works with Zelle for easy transfers.
Read our full Capital One 360 Banking Review.
Pros & Cons
- No minimum opening deposit or balance requirements
- No monthly fee
- Highly rated mobile app
- Overdraft protection
- Cash deposits only at Capital One branded ATMs (not partners)
- APY not competitive with top checking accounts
Details
Interest is compounded and credited monthly for 360 Checking. You may incur fees for cashier’s checks, outgoing domestic wire transfers and additional checkbooks.
Best for In-Person Access
Chase Secure Banking℠
Annual Percentage Yield
N/A
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
Avoid the monthly service fee when you have electronic deposits made into the account totaling $250 or more during each monthly statement period.
$4.95 or $0
Via Chase.com
N/A
$0
Avoid the monthly service fee when you have electronic deposits made into the account totaling $250 or more during each monthly statement period.
$4.95 or $0
Editor's Take
Chase Secure Banking made our list because the bank has among the largest branch networks in the U.S. However, this account is unlike other bank accounts for bad credit in that it has a monthly fee, but the small fee of $4.95 per month may be worth it for the increased access Chase offers. There are over 16,000 Chase ATMs and 4,700 branches, making this ideal for those who value in-person banking.
You can pay bills, deposit checks and send money with this account. And while you won’t earn interest, you will get access to some valuable in-app benefits to help you save. The Chase Spending Planner tool, for example, lets you track your spending, set a budget and follow your progress.
There are no overdraft fees for this account because you will only be able to spend what you have, and transactions that would cause your account to have a negative balance are declined.
Read our full Chase Secure Banking Review.
Pros & Cons
- No minimum opening deposit or balance requirements
- No overdraft fees
- Extensive network of Chase branches and ATMs
- Highly rated mobile app with budgeting features
- Does not earn interest
- No overdraft protection means transactions may be declined
Details
Certain services are not available with Chase Secure Banking. These include overdrafts, check writing, wire transfers and access to a safe deposit box. There are no fees on money orders or cashier’s checks and no fees to transfer money with Zelle. JPMorgan Chase Bank, N.A. Member FDIC.
Best for Mobile Banking
Chime® Checking Account
Annual Percentage Yield
None
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On Chime's Website
None
$0
$0
Editor's Take
We chose digital fintech Chime®* as one of the best bank accounts for bad credit because it offers fee-free checking with mobile banking tools designed to make managing your account easier. You can apply with no impact on your credit and no peek at your ChexSystems file, and the Chime Checking Account includes a host of convenient features.
Chime’s SpotMe®[ ] feature is a unique overdraft service that lets you overdraw your account up to $200 fee-free, and it’s available to anyone who meets direct deposit requirements. You can also get paid up to two days early with this account^[ ]. There are no minimums[ ], no service fees and no overdraft fees.
Chime doesn’t have any branches, but it does offer an extensive ATM network of more than 60,000˜[ ] locations. You can also deposit cash at Walgreens locations without a fee.
Read our full Chime Review.
Pros & Cons
- Highly rated mobile app
- Tools to automate savings goals
- Few fees
- Receive direct deposits up to two days early^
- SpotMe® feature allows for up to $200* in fee-free overdrafts
- Customer service is available 24/7
- Account doesn’t pay interest^^
Details
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Methodology
To create this list, Forbes Advisor analyzed 14 checking account offerings at a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 16 data points within the categories of fees, access, customer experience, digital experience, minimums and whether or not the account considers an applicant’s ChexSystems banking file.
Only accounts that are reported to not consider ChexSystems were included. Accounts with no or low fees and minimums rose to the top, as did those with higher customer service and mobile app ratings. Branch access was considered, but accounts at online-only banks ranked above those at brick-and-mortar institutions if they offered better perks and lower fees. To appear on this list, the checking account must be nationally available.
To learn more about our rating and review methodology and editorial process, check out our guide onHow Forbes Advisor Reviews Banks.
Summary: Best Bank Accounts for Bad Credit in 2023
| Account | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Annual Percentage Yield | Minimum Deposit Requirement | Monthly Maintenance Fee | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| SoFi Checking and Savings Account |  | 4.0 | Up to 4.60% | $0 | $0 | Learn More | On SoFi's Website | ||
| Navy Federal Credit Union Free EveryDay Checking |  | 0.01% | $0 | $0 | |||||
| Capital One 360 Checking Account |  | 0.10% | $0 | $0 | |||||
| Chase Secure Banking℠ |  | N/A | $0 | $4.95 or $0 | Learn More | Via Chase.com | |||
| Chime® Checking Account |  | None | $0 | $0 | Learn More | On Chime®'s Website |
Can You Open a Bank Account With Bad Credit?
You can open a bank account if you’ve made banking mistakes or have bad credit, but you may need to look for accounts that won’t use ChexSystems if you’re worried about your banking history.
Your ChexSystems report provides a snapshot of your banking history—including negative activities like involuntary account closures, unpaid fees and overdrafts—as well as a summary of times you’ve applied for new accounts. You might not have a ChexSystems file at all if you’ve always kept your accounts in good standing, but you will likely have a report if you’ve ever misused bank accounts.
Banks don’t check your credit when you apply for a checking or savings account, but they often check your banking history with ChexSystems. And while ChexSystems doesn’t report on credit, banking and credit histories can tell similar stories about your finances. Just as a bad credit score can indicate problems with debt, a poor ChexSystems file may indicate trouble using bank accounts responsibly. But this doesn’t mean you’re stuck if you need a new account.
How To Get a Bank Account With Bad Credit
Getting a bank account with bad credit is a two-step process.
First, find a bank account that fits your needs. Online banks can be better for bad credit and second chance banking not only because they typically charge fewer fees and have lower minimums than traditional banks but also because many don’t use ChexSystems to screen applicants. Consider the accounts on this list, which have been selected for people with negative banking histories.
Next, apply to open the bank account you’ve chosen by providing the following personal information:
- Your full name
- Date of birth
- Mailing address and email address
- Phone number
- Government-issued ID
- Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
Once approved, you can fund your account. You may be able to deposit money with an electronic transfer, check or cash deposit.
Tips for Improving Your Credit Score
Fixing your credit score and building a positive credit history can make many aspects of your life easier. When it’s time to apply for a loan or credit card, take out insurance or rent an apartment, for example, good credit may help you secure better rates and more favorable borrowing terms.
Here are a few tips for improving your credit score:
- Pay your bills on time or early each month.
- Check your credit score and credit report and report any errors you find.
- Work on paying down large loans and credit card balances.
- Use only as much credit as you need.
- Limit new accounts and hard credit inquiries.
If you’re trying to rebuild credit, consider a secured credit card. These require cash deposits to open and establish a credit limit, and they can help you build your credit history safely over time.
*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. The secured Credit Builder card issued by Stride Bank, N.A.
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