Many people have a bad credit history perhaps due to a change in their circumstances such as becoming unemployed. If your credit rating is poor and you need to open a current account then you will be pleased to hear there are a number of financial institutions that offer bank accounts for people with bad credit.
What is a Guaranteed Bank Account?
It is a bank account for people with bad credit and makes an excellent alternative to a basic bank account offered by some of the high street banks.
Why? Because, unlike a basic bank account, no credit checks are made on you so you are almost certainly guaranteed to be accepted for one as long as you are a UK resident and are at least 18 years of age.
Bad credit bank accounts offer many of the facilities that a standard current account provides for a fee.
Guaranteed bank accounts tend to be operated on a “managed” basis so you can speak to a member of staff who will go through your personal budget to establish how much you need to set aside to cover your household bills.Your salary is paid into your account from which your bills are paid either by direct debit or standing order.
Any remaining monies are transferred on your behalf onto a MasterCard or Visa prepaid debit card for you to spend. There are various ways that prepaid debit cards for people with bad credit can be used i.e. take cash out of hole in the wall machines, online to purchase goods and services, in shops, over the telephone and it can be used abroad.
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