Someone can get a bad credit history for a variety of reasons. Perhaps it is due to a change in circumstances such as being made redundant or overspending on one or more credit cards.
A poor credit rating can have many implications that may include the inability to open an ordinary bank current account with one of the major high street banks or building societies. However, bank accounts for people with bad credit are available from certain other financial institutions so it is usually possible to open a current account with bad credit.
Below we list some of these accounts: -
What are Bank Accounts for Bad Credit?
They are a bank account for people with bad credit and are often referred to as a Guaranteed Bank Account.
They make an excellent alternative to a basic bank account that are provided by some of the high street banks and building societies.
Why? Because, unlike a number of 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. You can usually apply online with the process often only taking a few minutes.
What do Bank Accounts for Bad Credit Provide?
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.
On our website you will find useful sections such as:-
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 subjects in respect of bank accounts.