Bad Credit Bank Accounts
You may experience difficulties in opening a standard current or savings account because you have a poor credit rating or low income or because you already have a current account which is overdrawn.
In this situation you may be able to open a basic account. Under the Banking Code, if a bank or building society offers a basic account and it thinks you may be interested in this service, it should provide you with information about the account.
Guidance on the Code suggests that a bank or building society should give information about basic bank accounts to people whose main source of income is state benefits and to people who have expressed an interest in opening an account which does not allow them to become overdrawn and who are prepared to accept the limitations of a basic bank account.
However, if you want to open a basic bank account you should ask for the account by name.
Full details of the types of bad credit bank accounts are given below:
| Bank / Building Society Name | Name of Account | Charge made if Direct Debit noty paid? | You may not be able to open an account if the below applies to you: | Abbey | Basic Current Acount | Yes | Undischarged Bankrupt. Record of Fraud |
| Bank of Scotland | Easycash Account | Yes | Undischarged Bankrupt. Record of Fraud |
| Clydesdale Bank | Castmaster Account | Yes | Undischarged Bankrupt. Record of Fraud. Some Bad Debts. |
| Co-Operative Bank | Cashminder Account | Yes | Record of Fraud |
| Halifax | Easycash Account | Yes | Undischarged Bankrupt. Record of Fraud |
| HSBC | Basic Bank Account | Yes | Undischarged Bankrupt. Some Bad Debts |
| Lloyds TSB | Basic Bank Account | Yes | Undischarged Bankrupt. |
| Nationwide Building Society | Flex Account Cash Card | No | Record of Fraud |
| Natwest | Step Account | Yes | Undischarged Bankrupt |
| Northern Rock | Cashminder | Yes | Undischarged Bankrupt. Record of Fraud Some Bad Debts |
| The Royal Bank of Scotland | Key Account | Yes | Undischarged Bankrupt. |
| Yorkshire Bank | Readycash | Yes | Undischarged Bankrupt. Record of Fraud Some Bad Debts |
When applying to open a basic bank account you should not be subject to a credit scoring test. However, a bank or building society may still refuse you a basic account where, for example, a credit reference agency check shows that you have previous bad debts of more than £500, has outstanding county court judgments against you, or is the subject of a bankruptcy order.
There are other bad credit bank accounts available if you have been refused a basic account. However, these do carry a monthly charge and some of them have an administration fee.
If you are struggling opening account, talk to one of our consultants before entering in a fee paying account.
0845 845 0140