Bank accounts for bad credit rated individuals are available from certain financial institutions as well as some of the major high street banks and building societies in the UK. You can often apply online for such a current account that usually comes with a debit card and get a quick decision as no credit check is undertaken by many of the companies offering these basic bank accounts. Therefore, bank accounts for people with bad credit can usually be opened even if you are heavily in debt including being bankrupt.
Below are some of the companies that provide bad credit bank accounts: –
- Credit Check Undertaken?
- Application Fee
- Monthly Fee
- UK ATM Fees
- Debit Card
- Direct Debits
- Standing Orders
- Pay in Salary/Benefits etc
- Online Banking
- Other Benefits
- £12.50 (£17.50 for joint account)
- £1.50 ATM UK
- Prepaid Debit Mastercard
- One-to-one Account Manager
- £0.50 ATM UK
- Prepaid Visa Card
- Yes (fees payable)
- Cash-back rewards
- £9.95 (Deluxe Account)
- Free ATM withdrawals in UK
- Prepaid Mastercard
- Cashback rewards and Free Purchase Protection
(The above fees are correct as at 11th August 2015. Other fees may apply. Please check the individual companies websites prior to applying.)
How do you apply for a bad credit bank account?
This type of account is often referred to as a Guaranteed Bank Account and you may be able to apply online through this website with the process normally only taking a few minutes
Why? Because, unlike standard bank or building society current accounts and some basic bank accounts, no credit checks are made on you with the credit reference agencies so you are almost certain to achieve guaranteed acceptance for one as long as you are a UK resident and are at least 18 years of age.
They may even be able to confirm your identity and address by electronic means but, if not, you would be asked to provide documentary evidence such as a current passport and recent utility bill.
What do these accounts provide?
They 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, pension and/or benefits are paid into your account from which your bills are paid either by direct debit or standing order.
Any remaining monies are often transferred on your behalf onto a MasterCard or Visa prepaid debit card for you to spend. There are various ways that your debit card can be used such as taking cash out of hole in the wall machines, to purchase goods or services online, over the phone or in shops and it can be used abroad.
You may also wish to visit our Bank Account News section for topical articles relating to bank accounts for bad credit as well as many other interesting, relevant subjects. Do remember that most of the companies offering bank accounts for people with bad credit mentioned in our Bad Credit Bank Accounts section charge an application fee and/or monthly administration fee plus there may be other charges such as to use an ATM in the UK, whereas many of the major banks and building societies do not charge such fees for those types of basic bank accounts. If you are looking for a credit card you may wish to visit our Credit Cards for Bad Credit section or if it is a loan you require look on our Bad Credit Loans section.