SafeBalance is a second-chance checking account, not a standard bank account
SafeBalance Banking is a checking account offered by Banco Latinoamericano de Exportaciones (Bladex) that is designed for people who have had banking problems in the past. It does not require a credit check, does not look at ChexSystems (the banking history database), and does not deny you based on prior overdrafts or closed accounts. You can open one even if you have been turned down by other banks.
The account comes with a debit card, online banking, and the ability to set up direct deposit. You can write checks, transfer money, and use ATMs. On the surface it looks like any other checking account. The difference is in what SafeBalance does not require from you before you open it, and what it charges you while you use it.
SafeBalance is not a prepaid card, not a savings account, and not a money market account. It is a real checking account with an FDIC-insured bank. That means your deposits are protected up to $250,000 if the bank fails.
Key Takeaways
- SafeBalance does not use ChexSystems or credit checks, so you can open one even if other banks have rejected you.
- The account charges a monthly fee (currently $8.95 per month as of recent updates, though this can change), plus per-transaction fees for certain activities like overdrafts or out-of-network ATM use.
- You can set up direct deposit, write checks, and use the debit card just like a standard checking account.
- SafeBalance reports to the major credit bureaus, so using it responsibly can help rebuild your credit history.
Who SafeBalance is designed for
SafeBalance targets people who have been denied checking accounts elsewhere. This includes people with a history of overdrafts, bounced checks, unpaid fees, or accounts closed by the bank. It also serves people who have never had a bank account and want to start without the risk of rejection.
The account is also used by people who do not have a Social Security number but have an ITIN (Individual Taxpayer Identification Number). Bladex will open a SafeBalance account with an ITIN, which is rare among U.S. banks.
If you have a clean banking history and have never been rejected by a bank, a standard checking account from a larger bank will almost certainly have lower fees and more features. SafeBalance is the choice when you have been locked out of the traditional banking system.
Fees and what they cost you
SafeBalance charges a monthly maintenance fee of $8.95 (as of the most recent public information, though fees can change). This is higher than many standard checking accounts, which often charge nothing or waive the fee if you meet a minimum balance or set up direct deposit.
Beyond the monthly fee, SafeBalance charges per-transaction fees in certain situations. Out-of-network ATM withdrawals cost $2.50 each. Overdrafts cost $35 per occurrence. Expedited debit card replacement costs $15. Stopping payment on a check costs $25. These fees add up quickly if you overdraft frequently or use ATMs outside the Bladex network.
SafeBalance does not charge a fee to open the account, and there is no minimum balance requirement to keep it open. You can deposit as little as $1 and maintain the account. Direct deposit is free, and transfers between your own SafeBalance accounts are free.
How to open a SafeBalance account
You can open a SafeBalance account online at the Bladex website or by visiting a branch in person. Online, you will need to provide your name, address, date of birth, and either a Social Security number or ITIN. You will also need a valid government-issued ID (driver's license, passport, or state ID).
The bank does not run a ChexSystems check, so your banking history will not be reviewed. There is no credit check. You will not be asked about prior overdrafts or closed accounts. The approval process is typically fast — many people are approved within minutes of submitting their information online.
Once approved, you can fund the account immediately with a debit card, bank transfer, or check deposit. Your debit card will arrive by mail within 7 to 10 business days. You can use your account for online bill pay and transfers before the card arrives.
How SafeBalance compares to other second-chance accounts
Other banks offer second-chance checking accounts, including Chime, LendingClub, and some credit unions. The main differences come down to fees, features, and who will open an account for you.
| Account Type | Monthly Fee | ChexSystems Check | ITIN Accepted | Overdraft Protection |
|---|---|---|---|---|
| SafeBalance | $8.95 | No | Yes | No (charges $35 per overdraft) |
| Chime | $0 | No | No | Yes (up to $200 advance) |
| LendingClub | $0 | No | No | No |
| Credit Union (varies) | $0–$15 | Varies | Varies | Varies |
SafeBalance's main advantage is that it accepts an ITIN and does not require a Social Security number. If you are in that situation, SafeBalance may be your only option among major banks. Its main disadvantage is the $8.95 monthly fee, which is higher than most competitors.
Chime and LendingClub charge no monthly fee and offer overdraft protection or advance features that SafeBalance does not. However, both require a Social Security number. If you have a Social Security number and no ChexSystems issues, Chime or a credit union may be cheaper.
What happens to your credit when you use SafeBalance
SafeBalance reports account activity to Equifax, Experian, and TransUnion — the three major credit bureaus. This means your checking account history becomes part of your credit file. If you keep a positive balance, make deposits regularly, and avoid overdrafts, this activity will be recorded and may help rebuild your credit history over time.
However, SafeBalance does not report to the credit bureaus in a way that directly improves your credit score the way a credit card or loan would. The account itself does not generate a credit score boost. What it does is create a record of responsible banking behavior that lenders and creditors can see when they pull your full credit file.
Overdrafts and fees do get reported, so if you overdraft frequently, that negative history will also be visible to future lenders. Using SafeBalance responsibly is a way to demonstrate that you can manage money without the risk of a credit card or loan.
Alternatives if SafeBalance does not work for you
If SafeBalance's $8.95 monthly fee is too high, or if you want overdraft protection, consider these options:
- Chime: No monthly fee, no overdraft fees (up to $200 advance available), but requires a Social Security number and does a soft ChexSystems check.
- Local credit unions: Many credit unions have second-chance checking accounts with lower or no monthly fees. Some do not check ChexSystems at all. Call your local credit union to ask.
- Online banks: Banks like LendingClub and Varo offer no-fee checking accounts to people with banking problems, though both require a Social Security number.
- Prepaid cards: If you cannot open any checking account, a prepaid debit card from NetSpend or Green Dot lets you load money and spend it without a bank account. Fees are typically higher than checking accounts.
If you have been rejected by SafeBalance or another bank, ask why. Some banks will tell you if you are on ChexSystems and give you the chance to dispute errors. You can also request your ChexSystems report for free at www.chexsystems.com to see what is in your file.
Frequently Asked Questions
Can I use SafeBalance if I have been rejected by other banks?
Yes. SafeBalance does not check ChexSystems or your credit history, so prior rejections will not affect your ability to open an account. The bank is specifically designed for people who have had banking problems in the past.
What is the difference between SafeBalance and a prepaid card?
SafeBalance is a real checking account with FDIC insurance, which means your money is protected if the bank fails. A prepaid card is not a bank account — it is a stored-value card, and your money may not have the same legal protections. SafeBalance also reports to credit bureaus, while prepaid cards typically do not.
Do I need a minimum balance to keep SafeBalance open?
No. You can keep the account open with $0 in it. However, you will still be charged the $8.95 monthly fee, so the account will go negative if you do not make deposits.
Can I get my debit card replaced if I lose it?
Yes, but standard replacement takes 7 to 10 business days and costs nothing. Expedited replacement (1 to 3 business days) costs $15. You can request a replacement through online banking or by calling customer service.
Will SafeBalance help me rebuild my credit score?
SafeBalance reports to the credit bureaus, so responsible use creates a record that lenders can see. However, the account itself does not directly boost your credit score the way a credit card or loan would. It is a tool for demonstrating financial responsibility, not a credit-building product.