Bad credit current accounts have been available for many years in the form of basic bank accounts. There are a number of major high street banks and building societies that offer a basic bank account that you can apply for either by calling into a local branch, over the phone or online.
- Either a cash card or a debit card that would enable you to purchase goods and services online, over the phone or in shops and you may even be able to use your card abroad plus get cash out through hole in the wall machines.
- Ability to set up direct debits and standing orders enabling you to be able to pay regular bills.
- Have your salary, wages, benefits or cash paid in.
You would not normally be provided with a cheque book or be allowed to go overdrawn which, to be honest, is not a bad thing. So, basic bank accounts for people with a bad credit rating may help keep peoples’ finances under control.
When applying for a basic bank account, you will either have to provide identification and address verification or the financial institution will establish this electronically. It does not normally matter what your employment status is so if you are employed, self employed, retired or unemployed you can usually be considered for basic bank accounts.
There does not tend to be any charge for opening or operating a basic bank account unless the bank were faced with having to return items unpaid on your account due to lack of funds.
After a period of operating your basic bank account satisfactorily and, subject to your credit rating, it may be possible to upgrade to a different type of current account but, for the time being, such an account should meet your requirements. There are many providers of basic bank accounts such as RBS, Barclays, Lloyds, NatWest and HSBC.
You may also like to peruse our frequently asked questions page that also makes reference to current accounts for bad credit.