Everyone can get a bank account for bad credit, worst case scenario is that you have to pay for one. Following the information on this website will help you find a bank account regardless of your situation. To start you may want to check out the different types of accounts.
Being rejected for a bank account when you have bad credit is relatively common in the UK. It can also be frustrating. However, by understanding the options available you will be able to choose the correct type of account to apply for. This will make life much easier.
So what type of bank account can people obtain if they have a poor credit record? There are a number products that include:
The suitability of each one will depend on your personal circumstances.
In recent years the number of bank accounts for people with bad credit has increased significantly. This is partly due to the government’s attempts to promote financial inclusion and partly due to new products on the market.
Since the onset of the credit crunch a number of products such as guaranteed bank accounts and prepaid cards have entered the market. This is great for people who cannot get a basic bank account because of their credit rating though it is important to understand when and how you should be using these products.
Basic bank accounts have become popular and are free but unfortunately you are still credit checked and sometimes refused. One alternative is called guaranteed bank accounts available at a very small cost, also sometimes known as managed bank accounts. Prepaid cards also come with guaranteed acceptance. Post office accounts can be opened only to have certain benefits paid into.
It is even more important that you pay attention to the application process when applying for bad credit bank accounts. For example, if there is an error on your credit report then this could mean unnecessary refusal for a basic bank account. The fact that you have a bad credit rating will cause enough damage, applying without due care will simply lessen your chance of obtaining a bank account even more.
The banking industry relies on a number of stakeholders such as you, the banks, regulators, associations and credit referencing agencies among others. Knowing who the key players are and what your rights are will help you.