The Best Banks & Credit Unions in Iowa That Offer Second Chance Bank Accounts

Editor's Choice

BBVA Online Checking

BBVA is one of the most well-known banks for Iowa residents that are looking for a second chance bank account.

You can open this account with as little as $25 for your initial deposit.

Features and Benefits

  • Bad credit OK
  • Relaxed account opening requirements
  • Free ATM withdrawals on BBVA ATMs
  • Online and mobile banking facilities included
  • Customizable banking alerts
  • Available nationwide (except Alaska and Hawaii)
  • Member FDIC

Recommended For:

Right now, a free checking account at BBVA is the only trusted option for customers looking for a Second Chance Checking account with high approval rate and excellent features and conditions. Use this opportunity to rebuild your credit while having a bank account with no restrictions.

Local Banking Options

Following is the web's most comprehensive list of banks and credit unions in Iowa that offer second chance banking and which may approve you for a bank account.

Please note that any unsuccessful attempt to open an account may have a negative impact on your credit history and score.

To avoid this, please check if there are any proven, top picked solutions are available in your area (listed above) or on our page with best non-ChexSystems banks and other banking alternatives.

See more: Comprehensive List of Non-ChexSystems Banks

This page is updated regularly, so please consider adding it to your bookmarks.

Collins Credit Union take2 Checking

Federation Bank Fresh Start Checking

Greater Iowa Credit Union Second-chance Checking

North Iowa Community Credit Union Fresh Start Debit

R.I.A. Federal Credit Union

Form of Verification: Credit report

Email from Bank:

When opening a Checking or Savings account we pull a credit report. Most people will qualify for a savings account regardless of the result of their credit report; however, the determination of eligibility for a checking account would be at the discretion of the manager opening the account and is dependant on the outcome of the report. All members must also qualify for our field of membership before an account can be opened.

Types of Accounts Offered: Personal checking and savings

Learn more about R.I.A. Federal Credit Union

Farmers State Bank

Form of Verification: ID and credit report

Special Notes:

They do NOT use ChexSystems and generally they are looking for a score of 600 or above.

Email from Bank:

In regards to your question we pull a credit report (Equifax) on each person that is going to be on the account. We would need to have your name, address, phone number, social security number, date of birth, and a copy of a id (drivers license, social security card, etc). If you would like us to get started with this please let us know.

Types of Accounts Offered: Personal checking, savings, and business accounts

Learn more about Farmers State Bank

Peoples Trust & Savings Bank

Form of Verification: Credit report

Special Notes:

They do NOT use ChexSystems.

Email from Bank:

Yes, when we open new accounts we do a credit review to determined if an account can be opened.

Types of Accounts Offered: Personal checking, savings and business checking

Learn more about Peoples Trust & Savings Bank

Manufacturers Bank & Trust Company

Form of Verification: Credit report

Email from Bank:

You would have to come in. We run a credit check with Equifax on all our new customers and look at the overall credit to determine is an account can be opened.

Types of Accounts Offered: Personal checking, savings, and business accounts

Learn more about Manufacturers Bank & Trust Company

Iowa Falls State Bank

Form of Verification: Credit report and ID

Email from Bank:

To open an account we need a photo ID (driver's license) with your current address on it (if you do not have a current address on the ID we need some other proof that you are living at that address...such as an energy bill), your social security number, and we do a credit report to verify information also.

Types of Accounts Offered: Personal checking, savings, and business accounts

Learn more about Iowa Falls State Bank

De Witt Bank & Trust Co.

Form of Verification: Credit report

Email from Bank:

We use a credit report.

Types of Accounts Offered: Personal checking and savings

Learn more about De Witt Bank & Trust Co.

Farmers Trust and Savings Bank

Form of Verification: Credit report

Email from Bank:

For all new customers to the bank, regardless of the type of account that they are wishing to open, we do pull a copy of their credit report through the credit bureau, Trans Union. It’s not really a certain score that is required. We look at the total credit history to see how responsibly accounts have handled in the past.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Farmers Trust and Savings Bank

Greater Iowa Credit Union

Form of Verification: Credit report

Special Notes:

They do NOT use ChexSystems. They do run a credit report and those that have poor credit may qualify for a second chance checking.

Second-Chance checking

  • No minimum deposit to open
  • No minimum balance
  • No monthly service charge Unlimited electronic debit transactions*

Email from Bank:

Greater Iowa Credit Union pulls an Equifax credit report to determine what type of account a person is eligible for. We do offer an account for everyone regardless of credit.

Types of Accounts Offered: Personal checking, savings and business accounts They also offer second chance checking for those with credit issues.

Learn more about Greater Iowa Credit Union

North Star Credit Union

Form of Verification: Credit report

Email from Bank:

We use a credit report.

Types of Accounts Offered: Savings

Learn more about North Star Credit Union

Midland Credit Union

Form of Verification: Credit report and valid drivers license

Email from Bank:

What we use when we do open new savings and checking account is a Credit Report.

Types of Accounts Offered: Personal checking and savings

Learn more about Midland Credit Union

Community Bank

Form of Verification: Credit report

Email from Bank:

It is our understanding federal banking regulations require that all financial institutions obtain, document and verify the identity of those opening ALL types of accounts (not just checking and savings). The information required is the individual(s) name, physical as well as mailing address, social security or tax identification number, and date of birth.

We do this by taking an application to open an account, copies of government issued (unexpired) photo IDs and social security cards. Please note the requirement has three parts: 1) obtain (written on the application form and signed by the applicant(s)); 2) document (we do this by taking photocopies of the documents presented); and 3) verify (there are various methods that can be used and the three that you wrote about seem to be most common in the financial services industry). Community Bank can use a credit report to verify information. Authorization to obtain the report is given on the written application form.

Types of Accounts Offered: Personal checking , savings and business accounts

Learn more about Community Bank

Farmers Savings Bank & Trust

Form of Verification: Credit report

Email from Bank:

The Federal Government, Our Customer Identification Program and policies require us to obtain, verify and record information that identifies each person who opens an account at our bank. We will ask you for your name, address, date of birth and other information that will allow us to identify you.

We will verify your identity with a copy of your photo id as well as obtain a credit bureau.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Farmers Savings Bank & Trust

Iowa State Bank and Trust Company of Fairfield

Form of Verification: Credit report

Email from Bank:

On all new accounts we do a credit report.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Iowa State Bank and Trust Company of Fairfield

Guaranty Bank

Form of Verification: Credit report

Email from Bank:

We use Equifax for both checking and savings. What we are primarily looking for is returned checks that have not been paid. If you have returned checks showing on your Equifax report but they have been paid we will be able to open an account, if not we need proof of payment before we will be able to open an account.

Types of Accounts Offered: Personal checking, savings, and business accounts

Learn more about Guaranty Bank

Clarke County State Bank

Form of Verification: Credit report

Email from Bank:

To answer your question about opening checking and savings accounts. We do run a credit bureau to make sure that there are no collections or judgments on the individual opening an account.

Types of Accounts Offered: Personal checking and savings

Learn more about Clarke County State Bank

Home State Bank

Form of Verification: Credit report

Special Notes:

They run nothing for a savings and only use a credit report for a checking .. NO ChexSystems.

Email from Bank:

We use a credit report with a scoring system on checking accounts or a credit report on debit cards.

Nothing is run on a savings account. You need a 625 or higher to qualify for a checking account.

Types of Accounts Offered: Personal checking, savings, and business checking

Learn more about Home State Bank

Cedar Falls Community Credit Union

Form of Verification: Credit report

Special Notes:

They do not use ChexSystems.

Email from Bank:

We do pull a credit report. We are making sure the report shows No bad checks and no other financial charge offs.

Types of Accounts Offered: Personal checking, savings and business checking

Learn more about Cedar Falls Community Credit Union

Frontier Savings Bank

Form of Verification: Credit report

Email from Bank:

We do have credit approval using information from a credit report on all of the accounts we open.

Types of Accounts Offered: Personal checking and savings

Learn more about Frontier Savings Bank

Ackley State Bank

Form of Verification: Credit report

Email from Bank:

We have the option to check a credit report if we need to.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Ackley State Bank

Farmers and Merchants Savings Bank

Form of Verification: Credit report

Email from Bank:

We use a credit report.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Farmers and Merchants Savings Bank

Advantage One Credit Union

Form of Verification: ID and a check with your last bank or current one could be used

Special Notes:

They do NOT use ChexSystems.

Email from Bank:

First we have to have you become a member with the credit union and fill out membership cards and put $5.00 in a savings account.

For a checking No we don't. We require an application and a signed authorization to query your last financial institution.

Types of Accounts Offered: Personal checking and savings

Learn more about Advantage One Credit Union

GNB Bank

Form of Verification: Bankcard and a credit report

Special Notes:

They do not use ChexSystems. Person that got an account:

Alright I went in and inquired about there checking accounts. They have a carefree checking that has only a $50 initial deposit requirement and the checks are $12.50. Have no idea who they order there checks through but we'll find out.

As for the Bankcars that was originally posted, unless they do a post application background check on you. The only thing I saw they utilized was the OFAC government page.

The only catch to them is I'm guessing because of there lack of use of a background check system. Is that they require the account be open 30 days before you can get a check card with them.

The bonus though is when you have maintained they account for more than 30 days you can apply for a check card with photo on it and get an automatic $700 in overdraft protection. So far, so good.

Email from Bank:

We use Bankcard to verify any poor check writing procedures. If that report comes back negative, we will do a credit report also.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about GNB Bank

U.S. Bank

Form of Verification: ChexSystems

Special Notes:

It has been reported that if your report is 21/2 yrs or older, they will not even see it. If this is your situation you can apply online, if not, you would need to visit an “in store” branch.

Most US banks “in store” branches are giving accounts to most people on ChexSystems. These are regular accounts, not 2nd chance checking...as long as you do NOT owe US Bank money and you are not reported on your ChexSystems report for any kind of "fraudulent activity".

There are some branches that are still not using this policy so it might be a good idea to call a branch local to you and ask about their policy first before going in.

Some “in store” branches have signs that actually says “ChexSystems? no problem!”… yet others will not open accounts at all. People are approved everyday.

Some branches do offer 2nd chance checking and some have been able to open business accounts when all debt to reporting bank(s) are paid and fraud is not indicated.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about U.S. Bank

Farmers and Merchants Savings Bank

Email from Bank:

Thank you very much for your inquiry. Here at Farmers and Merchants Savings Bank when opening new accounts we do perform credit checks as well verify information on both a social security card and a drivers license. I hope this answers your questions. If you need further information please do not hesitate to ask. We look forward to possibly working with you in the future.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Farmers and Merchants Savings Bank

First Trust and Savings Bank

Form of Verification: Credit report

Special Notes:

I talked to this bank & found that they use credit report for checking accounts. Score is also used to determine type of account & ATM/Debit card issuance.

Learn more about First Trust and Savings Bank

The Exchange State Bank

Special Notes:

It has been reported that they do not check anything for opening accounts.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about The Exchange State Bank

Bank of the West

Form of Verification: ChexSystems

Special Notes:

The manager told me its called "Fresh Start". Your last entry into ChexSystems must be older than one year. Cannot say Fraud. $10 a month.

Types of Accounts Offered: Second chance checking

Learn more about Bank of the West

First Class Credit Union

Form of Verification: Bancards

Email from Bank:

We use a program called BANCARDS.

Types of Accounts Offered: Personal checking and savings accounts

Learn more about First Class Credit Union

Great Western Bank

Form of Verification: ChexSystems

Special Notes:

It has been reported that as long as your report is a year or older, they will open an account. Fraud should not be indicated on the report for the best results and preferably.

  1. only one reporting bank
  2. debt to reporting bank is paid
  3. best to open the account over the phone

Email from Bank:

Thank you for your inquiry. If your Chex-systems record is more than a year old than it will be considered, but it is still not guaranteed that an account would be opened. The best thing to do would be to come in to a branch location, sit down and talk with a Personal Banker, and have them pull the Chex-systems report. You can discuss with them at that time, the items that may appear on that report and whether or not the account could be opened, or what your options are.

Types of Accounts Offered: Personal checking, savings and business accounts

Learn more about Great Western Bank

Marine Credit Union

Form of Verification: TransUnion credit report

Special Notes:

I did call and they stated that they look at overall credit, a certain score is not required.

Email from Bank:

To open a savings, a credit check is not normally used, however for checking it is.

Types of Accounts Offered: Personal checking and savings

Learn more about Marine Credit Union

White State Bank

Form of Verification: Proper ID with current address and SS card

Email from Bank:

I called and verified that they do not use ChexSystems or a credit report.

Types of Accounts Offered: Personal savings and checking accounts

Learn more about White State Bank

Hartwick State Bank

Form of Verification: ID

Email from Bank:

I called and verified that they do not use ChexSystems or any type of credit report.

Types of Accounts Offered: Personal checking and savings

Hills Bank and Trust Company

Form of Verification: Credit report

Email from Bank:

When opening a checking or savings account we run a credit report on the customer who is applying.

We normally require a score of 580 or above to qualify for a checking account. Depending on your personal situation, we may make exceptions for scores borderline or below. We also may offer to open a savings account first, and after an introductory period open a checking as well.

Types of Accounts Offered: Personal checking, savings and business checking

Learn more about Hills Bank and Trust Company

Federation Bank

Form of Verification: Credit report

Email from Bank:

Currently Federation Bank uses a credit report to determine a consumers eligibility to open an account.

Types of Accounts Offered: Personal checking, savings and business checking

Learn more about Federation Bank

River Community Credit Union

Form of Verification: Credit report

Email from Bank:

We use a credit report for opening a checking account. A savings account is not subject to a credit report.

Types of Accounts Offered: Personal savings, checking and business checking

Learn more about River Community Credit Union

Banks and Credit Unions That Offer Second Chance Banking by State

AlabamaLouisianaOklahoma
AlaskaMaineOregon
ArizonaMarylandPennsylvania
ArkansasMassachusettsRhode Island
CaliforniaMichiganSouth Carolina
ColoradoMinnesotaSouth Dakota
ConnecticutMississippiTennessee
DelawareMissouriTexas
District of ColumbiaMontanaUtah
FloridaNebraskaVermont
GeorgiaNevadaVirginia
HawaiiNew HampshireWashington
IdahoNew JerseyWest Virginia
IllinoisNew MexicoWisconsin
IndianaNew YorkWyoming
IowaNorth Carolina
KansasNorth Dakota
KentuckyOhio