We are often asked how to open a bank account with bad credit so let’s have a look at this in a little more detail. Opening a current account with bad credit need not be difficult if you know which companies to approach.
For instance, you could contact a high street bank or building society and apply to open a current account with them. However, you must appreciate that as part of their account opening procedure they will no doubt carry out a credit reference search on you.
Depending how poor your credit score is will dictate if they will be able to offer you any sort of current account and, if so, what type of account. You may be able to open a standard current account or some will provide you with a basic bank account that is fine for many people as it enables you to have your wages or benefits paid directly into the account. You can also set up direct debits to pay your regular bills and may receive either a cash card or debit card enabling you to withdraw cash and buy products in shops, online or by phone. You may be required to provide identification and confirmation of your address although these may be evidenced by electronic means.
If your credit rating is not good enough to open one of the above bank accounts then you may wish to consider applying to specialist organisations who offer a current account for bad credit. You can apply for an adverse credit bank account online even if you have got into financial difficulty.
These sorts of companies do not carry out a credit reference search on you so you can quickly apply for a bank account online with bad credit and receive a decision within minutes. Having provided the required information it should only be a few days before you are issued with a prepaid debit card to get cash out and pay for items online, by phone or in high street shops. You can notify your employer or the department responsible for paying your benefits of your bank details so that any income can be paid directly in. You can also set up direct debits and standing orders.
So, as you can see, it is potentially very straight-forward to open a bank account online with bad credit.
You may also find our frequently asked questions section informative.