Suffering from a bad credit rating can be a difficult situation to be in, but the answer is yes, you can open a bank account with a bad credit history – simply apply for a bad credit bank account and you shouldn’t be turned down because of your credit rating. Just like any other account, you’ll need to prove your identity and address and you will need some documents to do so, such as a passport or driver’s licence.
Why you can’t open some accounts with bad credit
If you have bad credit, you could be turned down for a ‘standard’ bank account: you’ll need to pass the banks’ credit checks to open all sorts of accounts.
If a bank doesn’t like something in your credit history, they can turn you down.
If your credit history includes something more serious than a few missed payments – such as defaults, a CCJ (County Court Judgment) or bankruptcy – where do you go for a bank account?
Bad credit bank account
A bad credit bank account is another term for a basic bank account. There is no overdraft with an account like this but you can still arrange Direct Debits, use cash machines and pay in an income, pension or benefits. A bad credit rating won’t stand in the way of opening one of these accounts.
The bad credit, bank account from thinkbanking doesn’t require a credit check and is even open to undischarged bankrupts. You simply need to prove that you’re over 18 and resident in the UK. You can find out more about the bad credit bank account here: http://www.thinkbanking.co.uk/bad-credit/.
This type of account can also be suitable for people with a moderate credit rating – those who don’t have any really serious issues with their credit rating, but who may have been turned down for a standard current account elsewhere, or who may like the idea of a bank account with no overdraft facility.