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College Students and Recent Grads, Reviews

Review: Journey Student Rewards from Capital One

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

If you are a college student looking to build credit, the Journey® Student Rewards from Capital One® could be a good option. Most important, there is a $0 annual fee and Capital One is willing to accept people with Average/Fair/Limited (or no) credit history. Although your credit limit will start out very low, Capital One promises a review of the limit after a short five short months — and good behavior can be rewarded with a higher credit limit. Cash back rewards are a nice added bonus, making this a good first credit card choice. Just make sure you don’t borrow with this card — at 26.96% (Variable) APR, the interest rate is high. The Journey® Student Rewards from Capital One® is featured as one of our recommendations for best student credit cards of March 2019.

Journey® Student Rewards from Capital One®

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Journey® Student Rewards from Capital One®

Annual fee
$0
Rewards Rate
1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time
Regular Purchase APR
26.96% (Variable)
Credit required
bad-credit
Average/Fair/Limited

How the Card Works

Capital One is one of the largest credit card issuers in the country. With Journey® Student Rewards from Capital One® it has created a credit card specifically designed for students looking to build their credit score and have access to the convenience of paying by credit card.

Capital One created the concept of “low and grow.” That means you will receive a very low credit limit at first (that could be as low as $500). If you demonstrate good behavior, your credit limit will grow over time. Capital One promises a review after just five months. If you make your first five monthly payments on time, you will be rewarded with a higher credit limit quickly.

The card also comes with a decent cash back rewards proposition. You will earn 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time. That means responsible cardholders will earn 1.25% cash back. In general, MagnifyMoney does not get excited about rewards for student cards. Because the limit is so small, the amount of cash back that you can earn will be limited. However, 1.25% cash back on all purchases is a nice added bonus for students.

There are a few extra perks with this card. There is no foreign transaction fee, which is great for any student looking to study abroad or backpack across Europe. You will also be able to see your CreditWise® credit score for free. CreditWise offers free access to your TransUnion VantageScore 3.0 credit score. Almost every credit card issuer now offers access to a free credit score (making the benefit less exciting). However, because the goal of a student card is to build your credit score, being able to watch it improve in real time is a nice benefit. We also like that, with CreditWise, you have access to interactive tools that let you see how your behavior will impact your score over time.

Just remember: your goal with a student card is to have an excellent score (above 700) when you graduate from college. To do that, you should focus on three steps. First, use your card every month. Second, try to keep your statement balance below 10%-20% of your credit limit. That means if you have a $500 credit limit, don’t spend more than $50-$100 a month on the card. That keeps your utilization low. Third, pay your statement balance in full and on time every month. By doing this, you avoid paying any interest. With this card — you also get the full 1.25% cash back. And, most important, you build a strong credit history.

How to Qualify for the Card

Although this card targets students, you do not actually need to be a student in order to get the card. Capital One makes it clear that this card is for people with “Average/Fair/Limited” credit. In particular, people with average credit have limited credit history. If you have had a credit card for less than three years, you would be considered “average.” If you have no credit or are new to the country, you would also be considered average by Capital One.

In order to be approved, you will need to have income. Because students are being targeted with this card, the income requirements will be much lower than for a normal card. However, if you don’t have a way of repaying your card, you will not be able to get one. And a parental allowance is not considered income.

Just remember: Because Capital One will accept people with limited or no credit history, the credit limit will be low and the interest rate will be high.

What We Like About the Card

We believe this card could be a great choice for a college student looking to build credit. Here is what we like most.

$0 annual fee.

As a college student, every penny counts. And no college student should have to pay a fee to build their credit score. Fortunately, there are a number of credit card companies willing to offer student credit cards with no annual fee, and Journey® Student Rewards from Capital One® is one of them.

No foreign transaction fees.

Although the primary reason you get a student card is to build your score, having a card can be particularly helpful — especially if you are studying or traveling abroad. Foreign transaction fees of 3% or more can end up costing a lot of money. Fortunately, Capital One does not charge foreign transaction fees, and you can use your card overseas without worrying about annoying fees.

Rewards good behavior.

With your first credit card, it is important to start building responsible money habits. This card rewards good behavior. If you make your payments on time, you get a 25% boost in the cash back that you earn. And if you consistently make your payments on time, your credit limit will be increased (which can help you with your credit score, when used responsibly).

And yes, you get rewards.

When selecting a credit card, paying no annual fee is the most important feature. Although we wouldn’t recommend selecting a student credit card based upon cash back or miles, it is a nice added perk for the Capital One card. If you have a $500 limit and do not spend more than $100 a month on the card, you will only earn $15 of cash back per year (at the 1.25% rate). And we do not recommend spending more money to get more cash back — that is a bad strategy.

What We Don’t Like About the Card

Very high interest rate.

The credit card charges an APR of 26.96% (Variable) to everyone who is accepted. College students have enough to worry about with student loans — they shouldn’t be taking on additional debt as very high, double-digit rates of interest. If you max out a $500 limit and pay only the minimum due, you would end up spending $84 of interest during the first year alone, and would still have a $284 balance remaining. In other words, most of your money would go toward the interest. Just beware: a student credit card is a very expensive way to borrow.

Expensive late fees.

If you miss a payment, you will be hit with a late fee of up to $35. That is a steep price to pay for anyone, let alone a college student. To avoid late fees, make sure you set up automatic monthly payments.

Alternatives to the Card

There are a number of other options out there. We think you should avoid any student card that charges an annual fee. But here are two good options that don’t charge a fee.

If You Want to Earn More Rewards

If you want to earn more cash back, Discover is our favorite option. Discover it® Student Cash Back has a $0 annual fee and provides free access to your FICO® score. And it does something we really like: it offers a “Good Grades Reward.” You will get $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years. That is on top of a cash back rewards program that earns 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. Plus, unlimited 1% cash back on all other purchases. And you can get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.

Who Benefits Most from the Card

If you are a college student looking to build your credit history, this is a great card. You do not have to pay an annual fee, and your credit limit will increase after just five months of on-time payments. The card also has a decent reward structure and no foreign transaction fee, making this a solid choice. You could probably earn more rewards at Discover (with its good grade bonus) or at Citi (at least in the first year with its sign-on bonus), but any of these would be solid options so long as you keep your balance low and pay it in full and on time every month.

Student Credit Card FAQs

Yes, you will need to demonstrate that you have income in order to qualify for the credit card. The credit card company needs to know that you will be able to make the monthly payment.

No — there is not a limitation based upon which school you attend.

Yes — it is never a good idea to max out your credit card, even if the credit limit is very low. As a general rule, never use more than 10%-20% of the credit limit. You can make payments before the statement date to help keep your statement balance low.

You should work hard to make sure you make payments on time every month. A missed payment will lead to a late fee. It could also lead to interest accruing on the balance and ultimately a negative mark on your credit report.

When you graduate from college and get a job, you should (if you used your card wisely) have a good credit score. At that time, you will have plenty of options available to you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Reviews

Review of OFX: A Money Transfer Provider

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

When you need to send a large amount of money internationally, OFX could be your most affordable option. The company offers web-based money transfer solutions for individuals and businesses alike. In our review, we found that this service has some features which put them ahead of the competition. However, it also lacks other features and capabilities that might be important to you.

Although OFX money transfers can sometimes take longer than some of the company’s speedier competitors, price is where it consistently shines — it charges no additional fees for transfers beyond the standard exchange rate markup, although it requires a minimum transfer for $1,000 to start with. That means people who have smaller amounts to transfer will need to look elsewhere.

OFX’s headquarters is based in San Francisco and the company has been in business since 1998. Currently, the company has offices located in six different countries. Yet it all started a little over two decades ago when it launched its first website from a garage in Sydney.

In the past 20 years, the company has grown to more than 200 employees. OFX has managed over 1 million money transfers for more than $119 billion, with the numbers still growing.

Here’s a full breakdown of OFX’s costs, fees and a look at how it compares with its competitors in the international money transfer space.

OFX key features

  • Low exchange rates: OFX claims to have better rates and fees than many banks. Per the company, you can save up to an average of 50% on global money transfer rates when compared with using a bank. Banks make money off international money transfers by charging a markup (aka a margin) on foreign exchange rates. The reason OFX fees are lower is because they say they charge margins which are “substantially less” for money exchanges than the rates many banks charge their customers. OFX exchange rate markups are often less than 1%, they claim.
  • $0 transfer fees: Once upon a time, it did charge a flat-rate fee for money transfers. However, now OFX doesn’t charge any additional transfer fees for international money transfers. (The company does point out that your recipient’s bank might deduct a fee for the incoming transfer, but it doesn’t receive any part of those funds.)
  • No hidden fees: OFX doesn’t charge setup fees, monthly account fees or any other hidden fees.
  • Compare fees before transfer: OFX lets you check the rate you will be charged for an international money transfer in advance. However, you’ll have to create an OFX account first. This process is a bit cumbersome compared with the easy-to-access fee estimators available from some other money transfer service providers. However, it also gives you a way to compare the rate it will charge you with the rate your bank would charge you for the same transaction, so you can make sure you’re getting the better deal. This is a nice touch (though you should still estimate fees from other online money transfer providers to make sure you’re getting the best deal available). To estimate fees you’ll have to create an account, log in or use the “Get Extra” widget to see how much you could save when you transfer money with OFX instead of your bank.
  • There’s an app for that: You can transfer money, track your transfers and get current exchange rates with the OFX app, available for Apple and Android devices.
  • Membership program: If you own a business, you may be able to enjoy preferred exchange rates from OFX. Preferred rates could make sending or receiving money cheaper by helping you save more on exchange rate margins. The OFX Member Benefits Program lets you share your preferred rate with your own customers, members or employees by granting them access to your OFX network as well.
  • Referral program: The OFX Referral Program allows you an opportunity to earn a revenue share when your customers or referrals use OFX for international money transfers. You can also add the company’s free rate and currency calculators to your website, giving your users access to the most recent currency information.

Sending a money transfer with OFX

Review of OFX: A Money Transfer Provider
Transfers generally take 1-4 business days. Times may vary based upon the country to where you are transferring funds.

You should allow:
  • 1-2 business days for OFX to receive your funds plus

  • 1-4 business days for the funds to reach your recipient



*OFX provides a currency converter tool inside your account, online or using the app, which can also provide approximate delivery times.
Where can you send money?
OFX can transfer your money to over 190 countries in 55 different currencies. See a list of locations here.

How much can you send? Transfer amounts start at $1,000(minimum).

*Maximum transfer amounts are determined based on your money transfer provider and type of currency. USD can generally be transferred without restrictions.

How to transfer money

Here’s a look at the process you’ll experience if you transfer funds internationally with OFX.

Step 1:
You can sign up for a personal account or business account online or via the OFX app. For a personal account, you will need to provide the following information:

  1. Your location
  2. Your email address
  3. Your currency pair (aka where you’ll be transferring money from and to)
  4. Your estimated transfer amount
  5. Your personal information (name, address, phone number, date of birth, nationality and occupation)
  6. Your driver’s license state and number (optional)

Step 2:
Create a password and set up a security question.

Step 3:
Verify your account by uploading one of the following:

  1. Copy of your driver’s license or passport (color)
  2. Proof of address (bank statement, utility bill or letter from a government agency)

Step 4:
Add the U.S. bank account you’ll be using to send funds.

Step 5:
Add new recipient details, including the person’s name and banking information.

Step 6:
Calculate transfer rate (if desired).

Step 7:
Transfer funds by setting up a direct debit or wiring the funds to OFX.

Step 8:
Funds are converted and delivered to your recipient.

Fees and fine print

Fees and penalties
Transfer rates
When you transfer money with OFX, the company takes a “small percentage” of the money you’re sending to cover costs.

Here’s how it works. Fees are based upon the market rate (also called interbank rate), which is a wholesale rate available to large financial institutions. Customers of OFX are charged a markup on the market rate, and that is how OFX makes money. You can check exchange rates here.


Transfer fees None
None

Compared with other money transfer options, OFX is often one of the most affordable ways to send money internationally. However, this isn’t the case 100% of the time. If you want to get the best value on your money transfer, it’s wise to compare costs among several money transfer providers.

Is OFX a good money transfer service to use?

Overall, OFX can often offer a more affordable way to send money internationally. You just have to be comfortable with the wait and minimum transfer requirements.

Pros
Cons
  • Low exchange rates mean OFX is often a cheaper way to send money.
  • Zero transfer fees keep the service affordable and simple to understand from a cost perspective.
  • 24/7 customer service support

  • No same-day delivery, (except from Australia to the U.S.)
  • Minimum transfer requirement of $1,000
  • Bank-to-bank transfers only with no cash payment or cash pick up options
  • No domestic transfers within the United States


Alternative money transfer options

MoneyGram and Western Union are international money transfer companies providing similar services to OFX.

MoneyGram

  • Where can you send money? MoneyGram has a large network. You can send money to more than 200 countries and territories around the world online or in person at one of MoneyGram’s 350,000 (approximate) global agent locations. Unlike OFX, you can also transfer money within the United States.
  • How long does a transfer take? Once you send a transaction successfully, your recipient can usually pick up cash within minutes. Just keep in mind that transfer time also depends upon operating hours and regulatory requirements.
  • How much can you send? $6,000 per online transfer is typically the cap on MoneyGram transfers, but it also depends upon the country where your recipient lives. Also, there’s a $6,000 cap per every 30 calendar days for online transfers. If you need to send more, you can. You’ll just need to a MoneyGram agent location to send additional transfers.
  • Fee to send money: MoneyGram’s costs can be a little on the high side. When compared with other competitors, MoneyGram fees are often higher plus they may include additional transfer fees. The cost to send money via MoneyGram varies quite a bit based upon where you’re sending money, how much you’re sending and how you’re paying. On the plus side, MoneyGram has a tool which can easily allow you to estimate fees online, without the hassle of being required to create an account first.

One area where MoneyGram shines is its potential speed of delivery. If timing is your primary concern when you are sending money, MoneyGram may be a good option to consider.

Western Union

  • Where can you send money? Western Union lets you send money to more than 200 countries and territories. The company also has a sizable network of over 500,000 agent locations, this can make finding a place to send or receive money in person a lot more convenient.
  • How long does a transfer take? Western Union allows you to send money in minutes in 130 currencies. Many transactions take place within minutes. Just keep in mind that factors like the service you select, your destination country, any regulatory issues, etc. could slow things down.
  • How much can you send? The amount of money you’re allowed to transfer will vary. Limits are based upon your transaction history with Western Union, the country where you are sending money, your location and the type of transfer service you choose. Based upon these factors, limits may range from $300 per money transfer up to $10,000 per transaction.
  • Fee to send money: Western Union is known for having a large network, not for being the most affordable way to send money internationally. Compared with competitors, exchange rate fees may be higher and you may be charged transfer fees on top of that. You can estimate the cost of sending money using Western Union’s online fee calculator. It’s a helpful and convenient feature, partly because you aren’t required to set up an account to access it. Also, even though Western Union may be more expensive in many cases, you shouldn’t just assume that is always the case. If you’re sending an online money transfer, it’s worth your time to see if Western Union can beat the cost your receiving elsewhere.

Western Union stands out among competitors for its conveniently large network and speed. With more than 500,000 agent locations, finding a convenient spot to send or receive money may be easier than with other service providers.

Should you choose OFX?

OFX frequently beats competitor pricing for international online money transfers. Yet there are so many moving parts when it comes to money transfers that you shouldn’t take for granted that it is the cheapest option. If you want to save the most money possible on your international money transfers, you have to be willing to do a little homework (perhaps every time you prepare to transfer funds) and compare costs between several money transfer networks.

Of course, even if it is the least expensive option for your specific situation, the cheapest option may not be the right choice for you. OFX tends to be a bit on the slow side with regard to getting money into your recipient’s hands. Also, OFX doesn’t give you the option to pay with cash nor does it give recipients a cash pickup option. If you don’t have the capability to transfer funds directly into your recipient’s bank account, you’ll need to find a different company to handle your money transfer.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Michelle Black
Michelle Black |

Michelle Black is a writer at MagnifyMoney. You can email Michelle here

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Best of, Reviews

The Top 7 Second Chance Bank Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Some banks don’t like giving second chances to customers who have less-than-stellar financial histories, especially since it could expose them to expensive risks. A record of bounced checks or debit card overdrafts could easily lock you out of the conveniences of modern banking.

Fortunately, banks also like making money, and some offer special “second chance” accounts that minimize their risk while allowing consumers to stay in the banking system. A second chance bank account gives customers with troubled records a fresh opportunity to demonstrate they can bank responsibly.

When it comes to a second chance account, fees are an unfortunate reality. But some accounts offer customers a better deal than others, and we’ve researched our database to find the second chance accounts with the most reasonable fee structures, while also factoring in whether they provide online and mobile banking, and how accessible accounts are throughout the country.

Second chance account basics

With a second chance bank account, customers shut out of traditional bank accounts get the opportunity to win their way back into a bank’s good graces. Similar to credit bureaus, financial services company ChexSystems maintains records of consumers’ banking histories. Bounced checks, overdrawn accounts or instances of fraud can all end up on your ChexSystems record; if you accumulate enough black marks on ChexSystems, banks could deny your application to open a new account.

Because second chance accounts are meant for customers who have demonstrated bad banking behavior, some lack features of traditional accounts, such as overdraft protection. In the eyes of the bank, you represent too much of a risk for them to extend you such courtesies.

Nobody likes paying fees, and we generally advise consumers to avoid needless banking fees due to the many fee-free banking options available. But fees are the price you pay for access to banking when you have a poor record. Plus, the second chance accounts listed below give you access to online and mobile banking, which is always a plus.

The 7 best second chance bank accounts

1. Tie between BBVA Compass ClearConnect Checking and BBVA ClearChoice Free Checking

BBVA Compass

Regional bank BBVA’s Compass ClearChoice Free Checking product is available as a second chance bank account. Keep in mind that it’s only available to residents of the states where BBVA maintains physical branches: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. But if you don’t live in those states, you can still avail yourself of BBVA’s Compass ClearConnect Checking account (unless you live in Alaska and Hawaii, in which case you are out of luck).

ClearChoice Free Checking features:

  • Free online and mobile banking, free customized alerts, free online and paper statements, and a free debit card (with option to personalize)
  • $25 minimum deposit to open
  • No monthly service charge to worry about

Fees to watch out for:

  • BBVA ATMs are free, otherwise a $3 fee will apply
  • $38 insufficient funds fee ($32 in California)
  • $15 deposit item returned fee
  • $32 stop payment fee made over the phone or in person ($30 in California); $25 if made online
  • No fee for closing your account within 180 days of opening

You can get a full list of Compass ClearChoice fees for each state here.

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Member FDIC

ClearConnect Checking features:

  • Free online and mobile banking
  • Minimum deposit of $25 needed to open the account
  • No monthly service charge

Fees to watch out for:

  • No fees for using any of the 55,000 BBVA and Allpoint ATMs, but for ATMs outside the network a $3 fee applies
  • $38 insufficient funds fee ($32 in California)
  • $15 deposit item returned fee
  • $32 stop-request fee when made over the phone or in person at a branch ($30 in California); a $25 fee to make the stop-request online
  • $25 account close fee if made within 180 days of opening

You can get a full list of Compass ClearConnect fees broken down by state here.

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on BBVA Compass’s secure website

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2. Wells Fargo Opportunity Checking and Savings Accounts

Wells Fargo Bank

Wells Fargo’s Opportunity Checking and Savings Accounts are tailor-made for folks with a lackluster credit or banking history. With a $25 opening deposit, you’ll get access to a second chance bank account that offers most of the bells and whistles of a traditional bank account. The account does come with a monthly fee, although it’s possible to waive it if you meet a few requirements (see below).

Account features:

  • $25 minimum deposit to open
  • Free transfers are available between Opportunity Checking and Savings accounts
  • You can choose to opt into overdraft protection
  • Free access to bill pay
  • “My Spending Report with Budget Watch” is available if you want to pay extra attention to where your money is going
  • Free debit card with access to more than 13,000 Wells Fargo ATMs throughout the country

Fees to watch out for:

  • $10 monthly service fee, waived if any of the following are true:
    • You make 10 posted debit card purchases or payments
    • You keep a minimum daily balance of $1,500 in the account
    • You receive $500 total in direct deposits each statement cycle
  • $35 overdraft and returned item fee
  • $12.50 overdraft protection transfer fee
  • $15 fee for excess activity (exceeding withdrawals from your savings account)
  • 3% foreign transaction fee with your debit card
  • $5 for money orders
  • $31 for stop payments

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on Wells Fargo Bank’s secure website

Member FDIC

3. Woodforest National Bank Second Chance Checking

Woodforest National Bank

This regional bank has a checking account aptly named Second Chance Checking, to help people rejected by other banks access — provided they live in one of the 17 states where a physical branch exists and can meet the $25 minimum opening deposit requirement. Those states are: Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.

Fees to watch out for:

  • $9.95 monthly maintenance fee if you use a direct deposit (or $11.95 without a direct deposit), $3.00 monthly paper statement fee (which can be avoided if you sign up for electronic statements)
  • $9 one-time account set-up fee
  • $2.50 ATM withdrawal fee when used at a non-Woodforest network ATM
  • $15 debit card set-up fee
  • $29 overdraft fee (for each charge)

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on Woodforest National Bank’s secure website

Member FDIC

4. First National Bank and Trust Company Renew Checking

First National Bank and Trust Company (WI)

First National Bank and Trust Company’s second chance bank account offering is called Renew Checking. You’re eligible for a new account if you live near the bank’s Beloit, Wisc. headquarters, in southern Wisconsin and northern Illinois.

Account Features:

  • No monthly minimum balance
  • $25 minimum deposit to open
  • Free online and mobile banking, bill pay, and e-statements
  • Access to 70,000 no-fee ATMs worldwide through Allpoint and MoneyPass
  • Eligible to upgrade account after twelve months in good standing

Fees to watch out for:

  • $9.95 monthly service fee, or $7.95 with direct deposit
  • $30 early account closure fee (if closed within 90 days of opening)
  • $34.50 overdraft fee
  • $34.50 insufficient funds fee
  • $34.50 stop payment fee

The fee schedule for personal accounts at First National Bank and Trust Company is here.

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on First National Bank And Trust Company (WI)’s secure website

Member FDIC

5. Peoples Bank Cash Solutions Second Chance Checking

Peoples Bank Cash Solutions

This Texas-based bank offers a second chance bank account that is available nationwide, and so long as you don’t have a record of bank or checking fraud on your record, you should be approved for this account. You’ll need to deposit at least $30 before the bank activates your account and provides you with checks and a debit card.

Fees to watch out for:

  • $4.95 monthly maintenance fee
  • $27.50 overdraft fee
  • $27.50 nonsufficient funds fee
  • $3.95 printed statement fee (which can be avoided with electronic statements)
  • $2.00 ATM withdrawal fee at machines not owned by Peoples Bank
  • $25 stop payment fee
  • $20 account closure fee (if within 90 days of opening account)

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on Peoples Bank Cash Solutions’s secure website

Member FDIC

6. Radius Essential Checking

Radius Bank

Products from online bank Radius are available to customers nationwide, and accessibility is a strong point in its favor. This second chance bank account only requires customers to deposit $10 to open an Essential Checking account, which is lower than some other accounts on this list.

Account Features:

  • A free debit card
  • 24/7 mobile and online banking
  • Access to Radius’s budgeting and personal finance tracking apps
  • Eligibility to upgrade to Radius’s Reward Checking account after 12 months of positive banking history

Fees to watch out for:

  • $9 monthly maintenance fee
  • $25 per item non-sufficient funds fee (waived on all overdraft items $5 or less)
  • $5 daily overdraft fee

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on Radius Bank’s secure website

Member FDIC

Alternatives to a second chance bank account

Get a prepaid debit card

Tired of the traditional banking experience? You could opt for a prepaid debit card instead. With a prepaid card, you can load money onto it and spend at merchants that accept major credit and debit cards. But if you try and spend more money than what’s on the card, the transaction is declined — although this prevents you from accruing any overdraft or insufficient funds fees. This is useful if you feel you may still have trouble managing your spending and need an extra layer of security to prevent you from getting into trouble.

Some prepaid cards offer extra perks like advance direct deposit and free ATMs so long as you stay in their network.

Open a secured credit card

You may also have better luck applying for a secured credit card if your credit score is in good enough shape. Usually, this requires depositing cash with the lender, who then gives you the credit card for the same amount. Each month that you make on-time payments, the bank will report that good behavior to the credit bureaus, helping you boost your credit score. At the end of the payment period (generally 12 months, though it varies by banks), you’ll get the full deposit back.

Secured cards can come with high interest rates and many don’t feature the enticing rewards other high-end cards do, but they get the basic job done for consumers who don’t need a card with a high credit limit.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

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