In debt and struggling to find a bank account?

Some people might assume that finding a bank account is as simple as walking into a branch or spending a few minutes online. However, if you’ve had money problems in the past, you may find it’s not as easy as you thought.

Just like when you apply for a loan or mortgage, banks usually run a credit check when you apply to open a new bank account. This means if your credit rating is particularly bad, you could be turned away.

Thankfully, there are still some bank accounts open to people in this situation.

Bank accounts for bad credit

Even if you do have a bad credit rating, you have a few options when it comes to finding a bank account.

‘Bad credit’ bank accounts

Some bank account providers offer accounts aimed at people who have struggled with credit in the past. These accounts don’t usually require a credit check, meaning you could qualify even if you’ve been made bankrupt, entered into an IVA or missed debt repayments in the past.

Like a basic bank account, bad credit bank accounts tend to offer the basic features you’d expect from a bank account. You’ll have somewhere to keep your money safe, a Direct Debit facility for paying bills and usually a debit card or cash card. But unlike a normal current account, you’re unlikely to receive any interest on your balance.

However, an advantage of some bad credit bank accounts is that they may offer helpful benefits – for example, a personalized budgeting service in which your money for bills and your spending money are kept separate, so you can’t overspend.

Basic bank accounts

As we’ve just explained, basic bank accounts offer the basic features of a bank account, but not much else. However, this could be ideal if you just need somewhere to keep your money and a way to gradually rebuild your credit rating.

Most High Street banks and building societies offer some kind of basic bank account, but they’re not always that easy to find – so if in doubt, go into a branch and ask.