{"id":26857,"date":"2022-12-20T11:38:17","date_gmt":"2022-12-20T10:38:17","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26857"},"modified":"2024-01-02T12:56:57","modified_gmt":"2024-01-02T12:56:57","slug":"bank-accounts-for-bad-credit","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/","title":{"rendered":"Bank Accounts for Bad Credit | How to Get One and Stay Afloat?"},"content":{"rendered":"\n<p>If you have bad credit, you may think it\u2019s going to be difficult to open a bank account, but it\u2019s not. <strong>There are bank accounts that you can apply for that are designed for people with bad credit.<\/strong> They won\u2019t give you all the perks of having a standard current account, but they\u2019re better than no account.<\/p>\n\n\n\n<p>If you\u2019ve got bad credit but want to open a bank account, read on to find out how to go about it. We cover almost everything you need to know about <strong>bank accounts for bad credit<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2850c910c4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2850c910c4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#can_i_get_a_bank_account_with_a_bad_credit_history\" >Can I Get a Bank Account With a Bad Credit History?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#what_is_a_bank_account_for_bad_credit\" >What is a Bank Account for Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#what_should_i_know_before_applying_for_a_bank_account_for_bad_credit_in_the_uk\" >What Should I Know Before Applying for a Bank Account for Bad Credit in the UK?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#how_to_apply_for_a_bank_account_if_i_have_bad_credit\" >How to Apply for a Bank Account if I Have Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#what_are_the_benefits_of_having_a_bank_account_for_people_with_bad_credit\" >What are the Benefits of Having a Bank Account for People with Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#do_banks_for_bad_credit_run_a_credit_check_when_opening_an_account\" >Do Banks for Bad Credit Run a Credit Check When Opening an Account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#can_a_bank_account_for_bad_credit_help_in_improving_my_credit_score\" >Can a Bank Account for Bad Credit Help in Improving my Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#can_i_get_a_bad_credit_bank_account_if_im_unemployed\" >Can I Get a Bad Credit Bank Account if I\u2019m Unemployed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#what_is_a_basic_bank_account\" >What is a Basic Bank Account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#features_of_a_basic_bank_account\" >Features of a Basic Bank Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#how_to_open_a_basic_bank_account\" >How to Open a Basic Bank Account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#can_i_be_refused_for_a_basic_bank_account\" >Can I be Refused for a Basic Bank Account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#tips_for_managing_your_basic_bank_account\" >Tips for Managing Your Basic Bank Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#what_alternatives_are_there_to_basic_bank_accounts\" >What Alternatives are There to Basic Bank Accounts?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#1_pre-paid_card_account\" >1. Pre-paid Card Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#2_credit_union\" >2. Credit Union<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bank-accounts-for-bad-credit\/#conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"can-i-get-a-bank-account-with-a-bad-credit-history\"><span class=\"ez-toc-section\" id=\"can_i_get_a_bank_account_with_a_bad_credit_history\"><\/span><strong>Can I Get a Bank Account With a Bad Credit History?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Yes, you can get a bank account with a bad credit history.<\/strong> You do have options which we\u2019ll discuss in more detail below. The key thing to remember is that having a bad credit file won\u2019t stop you from having a bank account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-a-bank-account-for-bad-credit\"><span class=\"ez-toc-section\" id=\"what_is_a_bank_account_for_bad_credit\"><\/span><strong>What is a Bank Account for Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <strong>bad credit bank account<\/strong> is one that\u2019s specifically designed for people with a poor credit history. They\u2019re usually referred to as basic bank accounts. As these basic bank accounts don\u2019t offer overdrafts, they\u2019re less risky for the bank. That\u2019s why your credit score doesn\u2019t matter.<\/p>\n\n\n\n<p>Like standard current accounts, basic bank accounts give you a place to store your money. The table below shows you what you can and can\u2019t do with a bank account for bad credit.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>What you can do<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>What you can\u2019t do<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Pay money into them<br>Use a debit card to pay for things<br>Draw cash out at cash machines<br>Pay bills by direct debit<\/td><td class=\"has-text-align-center\" data-align=\"center\">Go overdrawn<br>Have access to package bank accounts that offer various benefits<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-should-i-know-before-applying-for-a-bank-account-for-bad-credit-in-the-uk\"><span class=\"ez-toc-section\" id=\"what_should_i_know_before_applying_for_a_bank_account_for_bad_credit_in_the_uk\"><\/span><strong>What Should I Know Before Applying for a Bank Account for Bad Credit in the UK?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you have bad credit, there are a few things you should know before applying for a bank account in the UK.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Although bad credit won\u2019t affect your application you still need to prove who you are and where you live. Make sure you check with the bank for what documents they accept.<\/li>\n\n\n\n<li>Be willing to have a credit check done. Even though your credit score isn\u2019t a key factor, the bank is still likely to run a check on you.<\/li>\n\n\n\n<li>Make sure you understand the terms and conditions of the account before you apply. This way, you won&#8217;t be surprised by any hidden fees or charges.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-apply-for-a-bank-account-if-i-have-bad-credit\"><span class=\"ez-toc-section\" id=\"how_to_apply_for_a_bank_account_if_i_have_bad_credit\"><\/span><strong>How to Apply for a Bank Account if I Have Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you have bad credit, there are a few things you&#8217;ll need to do when applying for a bank account.<\/p>\n\n\n\n<ul class=\"wp-block-list\" type=\"1\">\n<li>First, compare the accounts offered by the different banks. There are a lot out there so make sure you understand what they offer. <a href=\"https:\/\/www.moneyhelper.org.uk\/en\/everyday-money\/banking\/basic-bank-accounts\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Fee-free bank accounts<\/strong><\/a> are offered by most high street banks so they\u2019re a good place to start.<\/li>\n\n\n\n<li>Second, gather all the required documentation. You\u2019ll need to provide proof of your identity and your address. The documents they\u2019re likely to accept are in the table below.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>What you need to prove<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>What documents can be used<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>What documents could be used if you don\u2019t have standard ones<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Proof of your Identity<\/td><td class=\"has-text-align-center\" data-align=\"center\">Passport<br>Driving License<\/td><td class=\"has-text-align-center\" data-align=\"center\">A letter from the Department of Work and Pensions<br>A letter from HMRC<br>A letter about your state pension<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Proof of your address<\/td><td class=\"has-text-align-center\" data-align=\"center\">Driving License<br>Utility bill<br>Bank Statement<br>Credit Card Statement<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>One of the above letters or:<\/strong><br>A letter from your GP<br>A letter from your landlord<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\" type=\"1\">\n<li>Once you&#8217;ve found the right account and gathered all the documents you need, you can submit your application. You can do this online, or some banks offer this service in person.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-benefits-of-having-a-bank-account-for-people-with-bad-credit\"><span class=\"ez-toc-section\" id=\"what_are_the_benefits_of_having_a_bank_account_for_people_with_bad_credit\"><\/span><strong>What are the Benefits of Having a Bank Account for People with Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having a bank account for people with bad credit has got its benefits. Here are a few.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Having a basic bank account can help to improve your credit score. You can use it to show you\u2019re responsible with money by paying bills from it on time. This will help with future applications for loans like <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\"><strong>short term loans<\/strong><\/a>, <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/small-loans\/\"><strong>small loans<\/strong><\/a>, and credit cards.<\/li>\n\n\n\n<li>A bank account provides a place to store your money safely. You won\u2019t have to worry about losing cash or having it stolen, and you\u2019ll always have access to your funds.<\/li>\n\n\n\n<li>You can quickly view your transactions with online access to your bank account. Most banks have an app you can use too.<\/li>\n\n\n\n<li>A bank account can help you to <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-save-money\/\"><strong>save money<\/strong><\/a>. Many banks offer features like automatic transfers to savings accounts. This can help you achieve your financial goals.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"do-banks-for-bad-credit-run-a-credit-check-when-opening-an-account\"><span class=\"ez-toc-section\" id=\"do_banks_for_bad_credit_run_a_credit_check_when_opening_an_account\"><\/span><strong>Do Banks for Bad Credit Run a Credit Check When Opening an Account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, most banks that offer accounts for people with bad credit will do a credit check when opening an account. This is because banks are regulated by the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" rel=\"noreferrer noopener\"><strong>FCA<\/strong> <\/a>and they have to follow the FCA guidelines.<\/p>\n\n\n\n<p>However, if you apply for a basic bank account, they won\u2019t use your credit score. A <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/soft-credit-check\/\"><strong>soft credit check<\/strong><\/a> or a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\"><strong>hard credit check<\/strong><\/a> will only help them verify who you are. Apart from this it won\u2019t have any impact on your application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-a-bank-account-for-bad-credit-help-in-improving-my-credit-score\"><span class=\"ez-toc-section\" id=\"can_a_bank_account_for_bad_credit_help_in_improving_my_credit_score\"><\/span><strong>Can a Bank Account for Bad Credit Help in Improving my Credit Score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, a bank account for bad credit can help you <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-improve-your-credit-score-in-30-days\/\"><strong>improve your credit score<\/strong><\/a>. When you have a bank account, your financial activity is reported to the credit reference agencies. The three main ones in the UK are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.experian.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Experian<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.equifax.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Equifax<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.transunion.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">TransUnion<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Anything that helps show that you\u2019re responsible with money will help your credit score. And this in turn helps you to get approved for future <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\"><strong>loans<\/strong><\/a> and credit cards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-get-a-bad-credit-bank-account-if-i-m-unemployed\"><span class=\"ez-toc-section\" id=\"can_i_get_a_bad_credit_bank_account_if_im_unemployed\"><\/span><strong>Can I Get a Bad Credit Bank Account if I\u2019m Unemployed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re unemployed, you can still open a bank account, but it will most likely have to be a basic one. Not having a regular income won\u2019t be a problem with a basic bank account.<\/p>\n\n\n\n<p>You might be wondering whether it\u2019s worth having a bank account if you\u2019re unemployed. Having even a basic bank account is worthwhile, here are some reasons why.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019re receiving benefits, you\u2019ll be able to get them paid straight into your bank account.<\/li>\n\n\n\n<li>You\u2019ll be given a debit card. This makes paying for things easier, especially if you want to buy anything online.<\/li>\n\n\n\n<li>If you apply for a new job, they may want to pay your salary into your bank account. This can make things difficult if you don\u2019t have one.<\/li>\n\n\n\n<li>Paying for your bills by direct debit from your bank account will help improve your credit score. That\u2019s so long as you pay for them on time.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-a-basic-bank-account\"><span class=\"ez-toc-section\" id=\"what_is_a_basic_bank_account\"><\/span><strong>What is a Basic Bank Account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A basic bank account is a \u2018no-frills\u2019 type of bank account. The main difference when compared to a standard bank account is that you can\u2019t have an overdraft with them. But the bonus is that your credit score doesn\u2019t matter. This makes them perfect if you\u2019ve got bad credit but need a bank account.<\/p>\n\n\n\n<p>You can open a basic bank account with most high street banks. The table below shows you some of the banks who offer them and what they call them.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Bank or Building Society<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Name of the basic bank account<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.barclays.co.uk\/current-accounts\/basic-account\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Barclays Bank<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Basic Bank Account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.lloydsbank.com\/current-accounts\/all-accounts\/basic-account.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Lloyds Bank<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Basic Bank Account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.rbs.co.uk\/current-accounts\/foundation_account.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Royal Bank of Scotland<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Foundation Account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.nationwide.co.uk\/current-accounts\/flexbasic\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Nationwide Building Society<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Flexbasic Account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.hsbc.co.uk\/current-accounts\/products\/basic-bank-account\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>HSBC<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Basic Bank Account<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.halifax.co.uk\/bankaccounts\/current-accounts\/basic-account.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Halifax<\/strong><\/a><\/td><td class=\"has-text-align-center\" data-align=\"center\">Basic Bank Account<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>There are a lot more banks and building societies who offer basic bank accounts. Before you apply to open one, make sure you read up on what they\u2019re offering on the account. Most of them should be fee free for example but check to be sure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"features-of-a-basic-bank-account\"><span class=\"ez-toc-section\" id=\"features_of_a_basic_bank_account\"><\/span><strong>Features of a Basic Bank Account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A basic bank account is a great solution for anyone with bad credit. Here are some reasons why they\u2019re good option.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Although the banks may still run a credit check on you, your credit score won\u2019t matter. Having a good credit score isn\u2019t a requirement to open a basic bank account.<\/li>\n\n\n\n<li>Paying your bills from your basic bank account can help you rebuild your credit score.<\/li>\n\n\n\n<li>Most of these accounts have no monthly fees.<\/li>\n\n\n\n<li>You can do everything that you can with a standard bank account. You can pay bills, pay in money, withdraw cash, and have a debit card.<\/li>\n\n\n\n<li>If you\u2019ve been managing your basic bank account well, you can upgrade it to a standard bank account. The bank may even review your account themselves and offer this to you.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-open-a-basic-bank-account\"><span class=\"ez-toc-section\" id=\"how_to_open_a_basic_bank_account\"><\/span><strong>How to Open a Basic Bank Account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Opening a basic bank account is a fairly simple process, here\u2019s what you need to do to open one.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Choose the right bank for you. Here\u2019s what you might want to consider.<\/li>\n\n\n\n<li>If you\u2019re going to need a branch to pay in cash, check if there\u2019s one near you. Some banks let you pay cash into your account at the Post Office.<\/li>\n\n\n\n<li>Have you already got debts with the bank? If so, you may want to open your basic bank account with another bank or building society. This is because banks can use the money from your bank account to pay off money you owe in another account.<\/li>\n\n\n\n<li>Once you&#8217;ve decided on a bank, find out what documents they need. You&#8217;ll need to provide identification and proof of your address. If you can\u2019t provide this information, you won\u2019t be able to open an account.<\/li>\n\n\n\n<li>Apply online or in person. The bank\u2019s website will tell you the best way to open your account.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-be-refused-for-a-basic-bank-account\"><span class=\"ez-toc-section\" id=\"can_i_be_refused_for_a_basic_bank_account\"><\/span><strong>Can I be Refused for a Basic Bank Account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most people can open a basic bank account without any problems. But there are some rare cases where you may be refused. The reasons why you may not be able to get a basic bank account are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019ve been convicted of fraud, or the bank suspects that you may use the account for fraudulent activity.<\/li>\n\n\n\n<li>If you can\u2019t prove your identification or address.<\/li>\n\n\n\n<li>If you\u2019re eligible for a standard account.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tips-for-managing-your-basic-bank-account\"><span class=\"ez-toc-section\" id=\"tips_for_managing_your_basic_bank_account\"><\/span><strong>Tips for Managing Your Basic Bank Account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are a few things to keep in mind when managing your basic bank account.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Keep track of your balance and make sure you have enough money in your account to pay for things.<\/li>\n\n\n\n<li>Set up your bill payments so that they go out when your salary is paid into your account.<\/li>\n\n\n\n<li>Set up text or email alerts to let you know if your account is running low. That way you can cancel payments before they\u2019re due if you don\u2019t have enough money in your account.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-alternatives-are-there-to-basic-bank-accounts\"><span class=\"ez-toc-section\" id=\"what_alternatives_are_there_to_basic_bank_accounts\"><\/span><strong>What Alternatives are There to Basic Bank Accounts?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you don\u2019t want a basic bank account or can\u2019t get one but you have a bad credit score, you do still have options. You can either take out a pre-paid card account or apply to a Credit Union.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-pre-paid-card-account\"><span class=\"ez-toc-section\" id=\"1_pre-paid_card_account\"><\/span><strong>1. Pre-paid Card Account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can have a pre-paid card with bad credit. It lets you pay for things like you would with a normal debit card. You just have to load money onto the card before you use it. There are advantages and disadvantages for using a pre-paid card account. The table below gives you some of them.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Advantages of a pre-paid card account<\/strong><\/td><td><strong>Disadvantages of a pre-paid card account<\/strong><\/td><\/tr><tr><td>No credit check needed.<\/td><td>Most of them charge a monthly fee or charges for transactions you make<\/td><\/tr><tr><td>Great for budgeting as you can only spend what you load onto your card.<\/td><td>You can\u2019t use them everywhere.<\/td><\/tr><tr><td>More secure as, if you lose the card, a thief can only use the money that\u2019s already loaded onto the card.<\/td><td>You may have a limit on how much money you can load onto your card.<\/td><\/tr><tr><td>Your money is ring-fenced by the company to protect it.<\/td><td>Your money on the card isn\u2019t protected by the <strong><a href=\"https:\/\/www.fscs.org.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Services Compensation Scheme<\/a><\/strong> (FSCS). This offers people in the UK protection on their money held in banks or savings accounts. If the bank goes out of business, up to \u00a385,000 of your money&#8217;s protected.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-credit-union\"><span class=\"ez-toc-section\" id=\"2_credit_union\"><\/span><strong>2. Credit Union<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You may be able to get a basic bank account from a Credit Union. They may charge a monthly fee to use the account, but you can have one if you have bad credit.<\/p>\n\n\n\n<p>You need to have a \u2018common bond\u2019 with the Credit Union to take out an account with them. This means you need to be living in a particular area or work in certain profession.<\/p>\n\n\n\n<p>If you want to look into having a bank account with a Credit Union, then you can search on &#8216;<a href=\"https:\/\/www.findyourcreditunion.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Find Your Credit Union<\/strong><\/a>&#8216;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bank accounts for bad credit are a great way to <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-improve-your-credit-score-in-30-days\/\"><strong>rebuild your credit score<\/strong><\/a> and improve your financial situation. If you&#8217;re looking for a basic bank account, makes sure you choose one that\u2019s fee free. Don\u2019t let bad credit stop you from having a bank account. Use the account wisely and budget your money so that it helps to build your credit score.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> We are not providing financial advice. These are just tips for informational purposes. Also, we are not affiliated to any of the external parties linked here, they are provided for reference only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you have bad credit, you may think it\u2019s going to be difficult to open a bank account, but it\u2019s not. There are bank accounts that you can apply for that are designed for people with bad credit. They won\u2019t give you all the perks of having a standard current account, but they\u2019re better than [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26859,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[139],"tags":[],"class_list":["post-26857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26857"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26857"}],"version-history":[{"count":2,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26857\/revisions"}],"predecessor-version":[{"id":27019,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26857\/revisions\/27019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26859"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}