Bank Accounts For Bad Credit

Bank accounts for bad credit rated people are available in the UK from financial institutions that specialise in offering such current accounts as well as many of the major high street banks and building societies. You can often apply online for an account that usually comes with a debit card to buy items and withdraw cash at many ATMs. You can have monies paid in such as your salary and set up direct debits and/or standing orders to pay regular bills. Those companies specialising in providing them do not usually undertake a credit check whereas the banks tend to do so. Therefore, a current account can usually be opened with someone even if you are heavily in debt including being bankrupt.

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  • 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
  • Card One Banking
  • No
  • No
  • £12.50 (£17.50 for joint account)
  • £1.50 ATM UK
    Withdrawal Fee
  • Prepaid Debit Mastercard
  • Yes
  • Yes
  • Yes
  • Yes
  • One-to-one Account Manager
  • card one banking current account review
  • Apply for This Bank Account
  • Eccount Money
  • No
  • £12.50
  • £12.50
  • £0.50 ATM UK
    Withdrawal Fee
  • Prepaid Visa Card
  • No
  • Yes
  • Yes
  • Yes
  • Cash-back rewards
  • eccount money current account review
  • Apply for This Bank Account
  • Cash Plus
  • No
  • £5.95
  • £9.95 (Deluxe Account)
  • Free ATM withdrawals in UK (Deluxe Account)
  • Prepaid Mastercard
  • Yes
  • Yes
  • Yes
  • Yes
  • Cashback rewards and Free Purchase Protection
  • cash plus account review
  • Apply for This Bank Account
  • icount-account-logo
  • No
  • £4.95
  • £9.95 – Pay Monthly option
  • £0.50 ATM UK
    Withdrawal Fee – Pay Monthly option
  • Prepaid Mastercard
  • Yes
  • Yes
  • Yes
  • Yes
  • Cashback Rewards scheme
  • icount current account review
  • Apply for This Bank Account
  • u-account-logo
  • No
  • No
  • £0.00, £5.00 or £10.00 (Three Price Plans)
  • £1.00, £0.50 or £0.00 ATM UK
    Withdrawal Fee – depends on price plan
  • Prepaid Contactless Debit MasterCard
  • Yes
  • Yes
  • Yes
  • Yes
  • U Points, Money Manager
  • u account review
  • Apply for This Bank Account

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(The above fees are correct as at 30th July 2018. Other fees may apply. Please check the individual companies websites prior to applying.)

What does a poor credit current account provide?

Apply for a current account with a pre-paid debit card online even if you have a poor credit rating

Apply for a bank account with poor credit

Accounts like the ones provided by Card One Banking, Cashplus, eccount, U Account and icount offer many of the facilities that a standard bank current account provides such as: –

  • Have your salary, pension and/or benefits paid directly into your account. Many offer the facility to pay in cash and/or cheques through a variety of outlets.
  • Operate your account either online or over the phone which enables you to access things like your balance and view your transactions 24/7.
  • Use a debit card to buy products and services online, over the phone or at high street shops and to withdraw cash at many ATMs both here in the UK and overseas.
  • Set up direct debits and/or standing orders to pay your regular household bills such as your mortgage repayments, council tax, rent, utility bills and home insurance.
  • Some are 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. Any remaining monies are then often transferred on your behalf onto a MasterCard or Visa prepaid debit card for you to spend.

We have not come across a bank, building society or specialist provider of such a current account that will issue you with a cheque book and very few will make available an overdraft facility.

Who can obtain one?

The application criteria may vary between the different companies offering these types of current account but they tend to be suitable for those UK residents over the age of 18 who have an adverse credit history although there is nothing to stop someone applying if they have a good credit rating. For instance, you could apply if you are employed and in receipt of a weekly wage or monthly salary, unemployed and in receipt of benefits, retired and getting a pension, if you are self-employed and even if you are bankrupt.

How do you apply?

Many providers allow you to apply online by completing an easy to fill in form.

An instant decision is frequently provided especially as no credit check is undertaken by many financial institutions.

Your identity and address can often be confirmed by electronic means but, if not, you would be asked to provide documentary evidence such as a current passport and recent utility bill.

Are there any application and/or monthly administration fees for basic bank accounts?

Specialist providers such as the ones contained in the above comparison table may charge an application fee and/or a monthly administration fee. They may charge other fees such as to use an ATM to withdraw cash in the UK and overseas. You should check their websites for full details of their fee structures before applying to open an account with one of them.

In the main, the major banks and building societies do not charge either an application fee or a monthly administration fee for their basic bank accounts and they do not normally charge you to use an ATM in the UK to take out cash.

Summary

As stated earlier, the services provided with bank current accounts for people with bad credit, should enable you to manage your day-to-day finances such as having the likes of your wages paid in, paying regular household bills by direct debit and/or standing order, using a debit card in shops and online and to withdraw cash at many ATMs.