Last Updated on April 28, 2024 by Umer Malik
Are you stuck with a bad credit score and you’re worried you might not find a bank to work with you? There are basic bank accounts and guaranteed accounts designed just for you. Let’s find out about these bad credit bank account options.
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Can I open a bank account with bad credit?
Yes, you can.
Seeing credit checks are usually a part of account opening processes, you will no doubt find it hard to open a standard bank account if you’re bankrupt or have bad credit. However, basic bank accounts come to the rescue when standard accounts can’t. 15 UK banks offer basic accounts, and although they carry out credit checks, it is simply for identification.
Guaranteed bank accounts are also available to you. They are card-based accounts and are very lenient towards low or bad credit. However, the difference between these accounts and basic accounts is that they are offered by fintech companies, not banks. They operate under UK regulations and are regulated by the Financial Conduct Authority (FCA). When they don’t follow the regulations, they won’t be covered by the Financial Services Compensation Scheme (FSCS) so ensure that they are complying, so that your funds can be safe.
Some credit unions offering guaranteed bank accounts also have branch offices and telephone support, in case you’re not comfortable with just an app or an online platform.
What is the best Bad credit bank account?
We have established your options to be basic bank accounts or guaranteed bank accounts, so how do you choose?
First, your choice should be hinged on how you plan to use this account. If you need an account with full physical outlets and a local branch, then you can get this with a basic bank account from a UK bank. Guaranteed banks won’t give you the physical operations.
When paying fees for banking services, basic bank accounts require little to no fees while guaranteed bank accounts have a monthly fee, as well as certain transaction charges.
Conclusion
According to the Financial Conduct Authority, 1.3 million adults residing in the UK don’t have bank accounts. A large number of these people are either worried or have been turned down by banks when they attempted to create accounts due to their bad credit scores. The good news is that bad credit bank accounts like guaranteed and basic bank accounts have been designed to provide people with poor credit scores with banking services.
Suits Me accounts for bad credit banking
Suits Me has an understanding of the difficulty that comes with not having a financial management solution. Therefore, they offer help to people residing in the UK who need bank accounts despite their poor credit rating.
You can apply for a Suits Me account in a few minutes and the steps are easy. You don’t need to undergo credit checks, and you have a 99.8% chance of getting your application approves, which gives you immediate access to a sort code, an account number, and an online banking facility.
Apart from that if you want to know about Switch to an Online Bank then please visit our Business category.
