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If you’ve had problems with credit in the past then getting approved for bank accounts can be tricky business.
There are plenty of bank accounts that come with credit automatically attached which means that banks will carry out a credit check on your circumstances before approving your new account.
Unfortunately, this does mean that those who aren’t eligible for credit will be unable to take on these accounts – hence the need for bad credit accounts which lower or remove credit options altogether.
At the end of the day, we all need somewhere safe and secure to manage our money which is why bad credit accounts have become such a vital resource for those with a less than perfect credit score.
Let’s take a closer look at how bad credit bank accounts work, their eligibility criteria and how you can improve your chances of successfully applying today.
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How Do Bad Credit Accounts Work?
As the name suggests, bad credit bank accounts are ideal for those with a less than perfect credit history. They’re specifically designed to help accommodate account holders who have either struggled with finance in the past or who have no credit history at all.
They work in exactly the same way as traditional current accounts in that you’ll be able to deposit cash into your account as well as making withdrawals from any of the thousands of cash points located across the UK.
You’ll have the freedom to manage your finances on the go with a wealth of mobile apps and online bad credit bank accounts now available, and set up convenient direct debits to help pay your bills on time and in full each month.
What’s more is that by keeping your new account in order and paying these direct debits regularly, you’ll actually improve your credit score which in turn will allow you to successfully apply for more traditional accounts and credit options in the future.
Quick FAQs About Bad Credit Accounts
Can I Get An Overdraft With Bad Credit Accounts?
Yes, however you may find that you’re only eligible for smaller overdraft limits until you have shown that you’re able to responsibly manage your bad credit bank account and any other credit commitments you have outstanding.
Remember, if you start out with a bad credit account there’s nothing to stop you from switching everything over to a current account once your credit score has improved.
Will I Be Charged For Setting Up A Bad Credit Account?
No. Almost all bad credit accounts are available free of charge however you may find that some financial institutions will also offer paid options that can unlock a wealth of useful benefits.
How Long Does It Take To Create A Bad Credit Bank Account?
Bank accounts for bad credit can be setup online in minutes. You’ll be able to apply through your phone, computer or tablet and will receive an instant online decision on your application. We’ll take a closer look at how to apply for bad credit accounts later in this guide.
Do I Need To Deposit Money Straight Away?
No. You can open an account online to get access to your brand new sort code and account number, however there’s no obligation to make an immediate deposit.
Top 3 Bad Credit Accounts 2019
Bank account providers are always looking for unique ways to stand out in the market which is why we’re always on the look out for new features. Take a look below at our guide to the top 3 bad credit accounts in 2019.
- Monzo
With more than 50,000 new customers coming to Monzo each and every week, there are plenty of bad credit accounts available. This app-based service is one of the most successful in the UK and they’re happy to offer accounts without credit to increase your chances of acceptance.
| Pros | Cons |
| All banking facilities available online or through their mobile app | Only one type of current account available |
| Credit is optional meaning that most people are eligible for a Monzo account | No physical branches making it unsuitable for technophobes |
| Specialist accounts available for 16-17 year olds who want to manage their money online | |
| Use your basic account with Apple and Google Pay |
- Revolut
Revolut have quickly built up a fantastic reputation for providing easy access current accounts to applicants from all financial backgrounds. With fair pricing at the heart of their business, they offer simple free bad credit accounts as well as paid-for accounts with bells and whistles attached.
| Pros | Cons |
| Every banking facility available at the touch of a button | Limited number of account options |
| No hidden charges for foreign transfers | |
| Very competitively priced insurance products |
- CashPlus
CashPlus continue to bring new products to market having established themselves as a leading trend setter amongst the UK challenger banks. As the first to offer pre-paid debit cards, they are also spreading their wings into business banking to help customers cover all aspects of their finances.
| Pros | Cons |
| Unrivalled track record in bringing new products to market | Card issuing fees apply |
| No credit checks for basic accounts | You’ll be charged on free accounts once you’ve reached their spending and withdrawal limits |
| Simple application with 100% approval once verified |
How To Apply For Bad Credit Accounts
Applying for bad credit accounts has never been simpler with long, drawn out applications now a thing of the past. Today, a huge range of accounts can be created in minutes and it all starts by getting your own personalised account comparison with CreditRaters.com.
Take a look through the range of available accounts and compare benefits to find a bank that best meets your account needs and spending habits. It’s then down to you to complete a short online application by providing your bank with some personal details including your name, date of birth and residency.
They’ll make an immediate assessment and, if accepted, you’ll have immediate access to your bad credit account through your mobile or desktop app. Any cards associated with your account will usually follow in 7-10 working days along with your PIN, however the vast majority of services can be carried out through your mobile.
Find the perfect bad credit account for your circumstances by searching CreditRaters.com today.