8 Fee-Free Bank Accounts You Can Open With Bad Credit
You don't need good credit to access quality banking anymore. Modern fintech companies offer fee-free checking accounts with premium features like early direct deposit, overdraft protection, and credit-building tools. Choose from eight excellent options that welcome people with bad credit and help you manage money better.
Start Building CreditBad credit used to mean settling for expensive second-chance accounts. Not anymore. Online banks now offer excellent checking accounts with zero fees and no credit checks. You can access premium features that were once reserved for customers with perfect credit. Many of these accounts include overdraft protection, early direct deposit, and credit-building tools.
We’ve reviewed eight top accounts that welcome people with bad credit. Each option provides unique benefits to help you manage money better.
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Improve Your Score NowBest Fee-Free Online Bank Accounts for People With Bad Credit
You don’t need good credit to access quality banking. Online banks and fintech companies offer accounts with no credit checks and no monthly fees. You get perks like early direct deposit and overdraft protection. Some accounts even pay interest or include budgeting tools.
Online banks often beat traditional banks on features, costs, and mobile apps. Below are eight excellent fee-free accounts available to anyone with bad credit.
Capital One 360
Capital One stands out among traditional banks for innovation. The bank offers multiple ways to avoid overdraft fees.
- No monthly fee
- Free in-network ATMs (Capital One, Moneypass, Allpoint)
- Early access to direct deposit
- No minimum balance
- Card lock security protection
- Easy peer-to-peer transfers
- Overdraft protection available
- Interest paid on accounts
- Physical branch locations
Capital One 360 requires no minimum credit score. However, they may run a credit report for new customers.
Chime
Chime offers one of the most feature-rich accounts available. You can access paper checks through online bill pay.
- No monthly fee
- Free peer-to-peer transfers to any bank
- Free in-network ATMs (MoneyPass, Visa Plus, Alliance)
- No minimum balance
- Early access to direct deposit
- Card lock security protection
- Interest paid on accounts
- Secured credit card available
- Optional overdraft protection
You need a Chime checking account before applying for their secured credit card.
Varo
Varo has no physical branches. But you can deposit cash at over 7,000 CVS locations nationwide.
- No monthly fee
- No minimum balance requirement
- Overdraft protection available
- Early access to direct deposit
- No credit check
- Card lock security protection
- Interest paid on accounts
- Secured credit card available
- Free in-network ATMs (Allpoint)
- Free peer-to-peer transfers with Varo accounts
- Free cash deposits at participating CVS locations
Dave
Dave helps you budget, save, and build credit. The account includes powerful money management tools.
- No monthly fee
- No minimum balance requirement
- Overdraft protection available
- Early access to direct deposit
- No credit check
- Card lock security protection
- Free in-network ATMs (MoneyPass)
- Virtual cards available
Current
Current offers both free and premium account tiers. The premium account costs $4.99 monthly and includes bonus features.
- No monthly fee for basic account
- No minimum balance requirement
- Overdraft protection available
- Early access to direct deposit
- No credit check
- Card lock and virtual card protection
- Free in-network ATMs (Allpoint)
Aspiration
Aspiration appeals to environmentally conscious consumers. They don’t invest deposits in fossil fuel companies. You can even use spare change to plant trees.
- Pay what you want (including $0) for basic Spend and Save account
- Plus account available for up to $7.99 monthly with carbon offsets
- No minimum balance requirement
- Overdraft protection available
- Early access to direct deposit
- Interest paid on accounts
- Virtual card security protection
- No credit check
- Cash back on purchases
- Free in-network ATMs (Allpoint)
Aspiration offers a full credit card (not secured). They only check credit if you apply for the card.
One
One provides a unique shared pod feature. You can create joint accounts with multiple owners. Control exactly how much you share with your spouse or children.
- No monthly fee
- No minimum balance requirement
- Overdraft protection available
- Early access to direct deposit
- Interest paid on accounts
- Card lock and virtual card protection
- Free in-network ATMs (Allpoint)
- Secured credit card available
Betterment
Betterment focuses on investment tools but offers full banking services. You get access to retirement planning tools and multiple account types including IRAs.
- No monthly fee
- No minimum balance requirement
- No credit check
- Card lock security protection
- Interest paid on accounts
- ATM fee reimbursement
- Cash back rewards
You Don’t Have to Settle for a Subpar Checking Account
Online checking accounts that skip credit checks now offer better perks than traditional banks. Fintech companies drove improvements across the entire banking industry. Even traditional banks upgraded their second-chance accounts to compete.
Fintechs are technology companies that partner with banks to provide modern financial services. Chime works with BankCorp and Stride Bank to hold your money. Your funds receive FDIC insurance just like traditional bank accounts.
Fintech accounts excel at mobile and online banking. You can handle almost everything from your smartphone. Many accounts offer early direct deposit up to two days early. Mobile check deposit uses your phone’s camera to process checks instantly.
Need to deposit cash? Most fintechs partner with retail stores like Dollar General or 7-Eleven. Some charge a fee, but others offer free cash deposits. You can also transfer money easily through Venmo, CashApp, PayPal, or Zelle.
Comparing Fintech Checking Accounts to Traditional Bank Accounts
Bad-credit checking accounts fall into two categories: traditional banks and online fintech companies. Each option has distinct strengths depending on your needs.
Traditional Bank Accounts
Traditional banks like Bank of America, Wells Fargo, and Capital One offer familiar in-person services. Key features include:
- Branch access: Visit physical locations to deposit cash or speak with representatives.
- FDIC insurance: Your deposits are protected up to $250,000 per account.
- Paper checks: Many traditional banks still allow check usage. Some are phasing out checks for bad-credit accounts.
- Higher fees: Monthly maintenance fees, overdraft charges, and minimum balance requirements add up.
- Limited tech features: Traditional banks offer fewer mobile tools than fintechs.
Fintech Checking Accounts
Fintech companies like Chime, Varo, and Dave focus on online and mobile banking. Benefits include:
- No monthly fees: Eliminate maintenance charges, overdraft fees, and minimum balance requirements.
- Credit-friendly access: No credit checks make accounts accessible to everyone.
- Tech-savvy tools: Credit-building programs, automatic savings, and spending trackers built into apps.
- Fee-free ATMs: Access large ATM networks for free withdrawals.
- Mobile-first banking: Manage accounts entirely through apps anytime, anywhere.
- FDIC-insured: Fintech partners with FDIC-insured banks to protect your money.
Which One Is Right for You?
Choose traditional banks if you value in-person service and paper checks. Pick fintech accounts for lower fees and better digital tools. Online banking eliminates the need for physical branches.
What to Look For in an Online-Only Checking Account
Online-only checking accounts deliver excellent benefits. Look for these key features:
- Low or no fees: No monthly charges, overdraft fees, or balance requirements
- Convenience features: Early direct deposit, mobile check deposits, and fee-free ATM access
- Tech compatibility: Integration with Google Pay, Apple Pay, and excellent mobile apps
- Budgeting tools: Track spending, manage bills, and set up automatic savings
Online banks compete aggressively for your business. Many offer premium perks beyond standard features:
- Enhanced security: Freeze and unfreeze your debit card instantly. Generate virtual card numbers for online purchases.
- Money management: Higher interest rates, savings tools, investment options, and budgeting help
- Convenience and rewards: Fee-free money transfers, cashback rewards, and no foreign transaction fees
Take Control of Your Banking Today
Bad credit used to mean expensive checking accounts with limited features. Check-cashing businesses charged hefty fees on payday. You had to wait in long lines just to access your own money.
Those days are over. Fintech companies now offer accounts that rival premium bank products. Competition drives banks to sign new clients with great perks. Accounts are easy to open regardless of your circumstances.
You have excellent banking options available right now. All you need is a smartphone, tablet, or computer. Our partner Kikoff can help you rebuild your credit while managing your money better. Take the first step toward financial freedom today.