A CPC checking account is a second-chance bank account designed for people who have been denied a regular checking account
CPC stands for Chexsystems Problem Corrector. It is a checking account offered by banks and credit unions specifically for people with a history of overdrafts, bounced checks, unpaid fees, or other banking problems that show up on their Chexsystems report. Chexsystems is a banking history database that most banks check before opening an account — similar to how credit bureaus track credit history.
If you have been turned down for a regular checking account, a CPC account gives you a way to bank again. The account comes with restrictions and higher fees than a standard account, but it also gives you a chance to rebuild your banking history. After you demonstrate responsible use for a set period (usually 12 to 24 months), you may be able to move to a regular checking account at the same bank.
Not all banks offer CPC accounts. The major banks that do include Chequers, Telebank, and some regional credit unions. You can search for CPC accounts in your area through the Chexsystems website or by calling banks directly and asking whether they offer a second-chance checking program.
Key Takeaways
- A CPC account is designed for people who have been denied a regular checking account due to banking history problems tracked by Chexsystems.
- CPC accounts charge higher monthly fees and have lower spending limits than standard checking accounts, but they report activity to Chexsystems to help rebuild your record.
- You will need to provide identification and proof of address, and the bank will review your Chexsystems report before opening the account.
- After 12 to 24 months of responsible use, many banks allow you to convert a CPC account to a regular checking account with lower fees.
How a CPC account differs from a regular checking account
A CPC account has stricter terms than a standard checking account. Monthly fees are typically higher — ranging from $10 to $25 per month depending on the bank — compared to $0 to $15 for a regular account. Overdraft limits are lower or nonexistent, meaning you cannot spend more than you have in the account. Some CPC accounts do not allow overdrafts at all.
Debit card limits are also restricted. You may be limited to $500 or $1,000 per day in spending, whereas a regular account typically allows $2,000 or more. Check writing may be limited to a certain number per month, and some banks charge per check.
The key difference that matters for rebuilding your record is that CPC accounts report your activity to Chexsystems. If you use the account responsibly — no overdrafts, no bounced checks, no unpaid fees — that positive history gets recorded. After the required period, you can use that clean record to move to a regular account.
What you need to open a CPC account
Banks that offer CPC accounts still require standard identification and proof of address. You will need a government-issued photo ID (driver's license, passport, or state ID) and a recent utility bill, lease, or bank statement showing your current address. Some banks may also ask for a Social Security number.
The bank will pull your Chexsystems report and review the specific problems on your record — overdrafts, bounced checks, unpaid fees, or fraud reports. Some banks have automatic approval for CPC accounts regardless of what is on your report, while others may deny you if the problems are too recent or severe. If you are denied, you can request a copy of your Chexsystems report to see what is listed and dispute any errors.
You do not need a minimum deposit to open most CPC accounts, though some banks may require $25 to $100 to activate the account. Once open, you will receive a debit card and checks, though check orders may cost extra.
How to rebuild your banking history with a CPC account
The goal of a CPC account is to show that you can manage money responsibly. This means keeping a positive balance, not overdrawing, paying any fees on time, and using the account regularly. Banks track this behavior and report it to Chexsystems as positive activity.
After 12 to 24 months of clean account use, contact your bank and ask about converting to a regular checking account. Some banks do this automatically; others require you to request it. When you convert, your monthly fees drop and your spending limits increase. Your Chexsystems record will show the period of responsible use, which helps if you ever need to open an account elsewhere.
If you close the CPC account before the conversion period is complete, the positive history you built may not transfer if you open an account at a different bank. Stay with the same bank through the conversion period if possible.
Common fees and limits on CPC accounts
| Feature | CPC Account | Regular Checking Account |
|---|---|---|
| Monthly fee | $10–$25 | $0–$15 |
| Daily debit card limit | $500–$1,000 | $2,000+ |
| Overdraft protection | None or very limited | Available (with fees) |
| Checks per month | Limited or charged per check | Unlimited |
| Direct deposit | Usually available | Usually available |
Beyond the monthly fee, watch for per-check charges (typically $0.50 to $1.50 per check), ATM fees if you use out-of-network machines, and fees for balance inquiries or customer service calls. Some banks charge a fee to convert from a CPC account to a regular account, though many do not.
Direct deposit is usually available on CPC accounts, which can help you avoid fees by ensuring money reaches your account on schedule. If your employer offers direct deposit, use it to keep your balance stable and reduce the risk of overdrafts.
What happens if you overdraft or miss a payment
If you overdraft a CPC account, the bank will charge an overdraft fee (typically $25 to $35) and may close the account. A closed account due to overdraft gets reported to Chexsystems as a negative mark, which can make it harder to open an account elsewhere and may extend the time before you can convert to a regular account.
If you incur fees and do not pay them, the bank may close your account and send the debt to collections. This also appears on your Chexsystems report and damages your banking history further. The goal of a CPC account is to avoid this outcome, so treat it as a fresh start and do not repeat the mistakes that led to the account in the first place.
If you do overdraft or miss a payment, contact the bank immediately. Some banks will waive a single fee if you have otherwise maintained the account responsibly. Explain the situation and ask whether they will work with you or whether the account will be closed.
Alternatives if you cannot open a CPC account
If you are denied a CPC account or cannot find one in your area, other options exist. Some credit unions offer second-chance accounts with less restrictive terms than CPC accounts. Call local credit unions and ask whether they have a program for people with Chexsystems problems.
Prepaid debit cards do not require a bank account or a Chexsystems check, though they do not report to Chexsystems either, so they do not help rebuild your banking history. They are useful for receiving direct deposit and managing money, but they do not open doors to a regular bank account later.
You can also request a copy of your Chexsystems report and dispute any errors. If incorrect information is removed, you may be able to open a regular checking account without needing a CPC account. Chexsystems allows one free report per year at chexsystems.com.
Frequently Asked Questions
How long does negative information stay on my Chexsystems report?
Most negative items stay on your report for five years from the date they occurred. After five years, they fall off automatically. However, some items like unpaid fees sent to collections may stay longer if the debt is not resolved. Paying off old debts can help, though it does not remove the item from your report immediately.
Can I have a CPC account and a regular checking account at the same time?
Yes, you can open a regular account at a different bank while you have a CPC account, as long as you meet that bank's requirements. However, if you have recent Chexsystems problems, most banks will deny you for a regular account. A CPC account is usually your only option until your record improves.
What if I dispute something on my Chexsystems report?
You can file a dispute directly with Chexsystems by mail or online. Chexsystems must investigate within 30 days and remove the item if it is inaccurate or unverifiable. If the dispute is successful, your report improves and you may be able to open a regular account without a CPC account.
Do CPC accounts help my credit score?
CPC accounts do not report to credit bureaus, so they do not directly help your credit score. However, they do report to Chexsystems, which helps you open bank accounts. If you use a CPC account responsibly and later open a regular account, that regular account may report to credit bureaus and help your credit over time.
Can the bank close my CPC account without warning?
Yes, banks can close CPC accounts for overdrafts, unpaid fees, or suspicious activity. Most banks will notify you before closing, but some may close immediately if they detect fraud or repeated overdrafts. Read your account agreement to understand the bank's closure policy.