Opening a current account with bad credit

Opening a current account with bad credit

Have you been trying to open a current account but keep getting refused because you have bad credit? Everyone is entitled to a current account, so there are options out there for you. Here we will discuss how you can open an account with bad credit.

Can I get a current account with bad credit?

Many traditional banks will refuse an application for a standard current account if you have bad credit. This is because your credit history portrays unreliability when it comes to your finances and they view your custom as a risk. However, there are still other accounts that are available to you.

What options do I have?

You may not be able to open a standard current account or an account that includes any reward schemes or overdrafts, but you can still open a basic account. This type of account is designed to help those who have a bad credit rating, so let’s take a look at what a basic bank account can offer you.

Basic bank account

A basic bank account is exactly what it says it is; it is an account that offers basic features. It provides a secure place to store your money so you can continue to pay your bills digitally. They also provide a card, whether that’s a debit card or a prepaid card, so you can spend your money in shops.

Here is a list of features that a basic bank account can offer.

Account featuresBasic bank account features
Open to everyoneYes (as long as you’re eligible)
Secure account for your moneyYes
Debit / prepaid cardYes
Set up Direct Debits / standing ordersYes
OverdraftNo
Fees/chargesSometimes
Deposit money and withdraw cashYes
RewardsNo
Offer insuranceNo
In credit interestNot usually

Am I eligible?

To apply for a UK bank account, you usually need to be aged 18 or over and have a UK residence. However, this can alter depending on the bank and the specific account. For example, some accounts may let you open an account at aged 16. Here at thinkmoney, our current account is open to anyone who is aged 18 or over and lives in the UK, even if you have bad credit, have been bankrupt, or have had a CCJ.

How can I improve my credit score?

As soon as you have opened your basic bank account, you can begin to improve your credit score. You can do so by paying your bills on time, avoiding overdrafts and saying goodbye to bank charges.

How can I improve my credit score?

As soon as you have opened your basic bank account, you can begin to improve your credit score. You can do so by paying your bills on time, avoiding overdrafts and saying goodbye to bank charges.

To improve your credit rating:

  • Make payments online or via your card to provide a digital trail
  • Pay your bills on time
  • Make repayment plans on any debt you have
  • Don’t have too many accounts and only open a new account when you need them
  • Don’t apply for too much credit
  • Keep your credit utilisation low
  • Ensure your details are correct on credit reports

For full details, you can check out our guide on how to improve your credit score. Here at thinkmoney, we have helped three out of four customers boost their credit rating.

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