When you’re applying to open a new bank account when you have bad credit, many banks will run a credit check. If you have a bad credit rating, you could be turned down.
It may be a better idea to open a basic bank account if you are in this situation. Some companies offer ‘no credit check’ bank accounts, designed specifically to help people with a bad credit rating; they generally have no overdraft, so there’s no risk of the customer going overdrawn.
They will, however, offer a lot of the features that people really need from a bank account – such as the ability to deposit money, withdraw it from ATMs, arrange Direct Debits, even (in some cases) use a debit card.
So a no credit check bank account offers people with bad credit an opportunity to enjoy many of the benefits of a bank account – without the worry of being turned down because of marks on their credit history.
Types of Bad Credit
This kind of account could be a good option for people with all sorts of credit problems on their credit record, including:
• Unpaid debt
• Defaults
• Arrears
• CCJs
• Repossession
• Bankruptcy
• Individual Voluntary Arrangements
• Debt Management Plans
• Failed credit applications
• Bank account frozen or closed by provider
Currently Going Through a Bad Credit Situation?
If you’re currently going through bankruptcy or another insolvency solution, you could find it difficult to get a ‘normal’ bank account even after your solution has ended, because of the impact on your credit rating. A no credit check bank account is an option for people in that situation too.
In fact, a few bank accounts like this are available even to people who are undischarged bankrupts – who are still in the middle of their bankruptcy proceedings.
The actual features of different ‘basic’ bank accounts can really vary, so it’s important to understand what you’d be signing up to before you commit yourself.
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