Assuming that you have a bad credit score, opening a bank account with bad credit may be a little struggle.Basic bank account is the easiest account to open! That is because in many cases you want need to get your details to a credit check, and that part of your finances can be very straightforward.
Can you open a bank account with bad credit?
There are number of reasons why you might have been rejected when asking for a standard bank account. Those reasons might be missed payments, unpaid bills, uncleared loans etc., and they all will make you have a bad credit record. Nevertheless, there is a great chance that you can still qualify for basic bank account because those accounts are designed for people with bad credit score and they are known as bank accounts for people with bad credit. Also, these accounts don’t have interest if you are in credit and they are not offering the overdraft facilities.
Imagine them as a place where you will simply store your money to pay your bills by direct debit. Sometimes those accounts have a debit card and you are able to make online payments with those cards.
Banks don’t make much money with a basic bank account as they make with standard bank account or package account which always have a benefit of monthly payments. That is why basic bank account is not so widely publicized. When you fail the credit check with packaged bank account or standard bank account you would be offered to open a basic bank account.
Do you pay any charges for basic accounts?
Using basic bank accounts don’t have any charges as a monthly fee because they have very simple offering. Anyway, if you don’t have enough money in your account when you trying to pay a direct debit, you will be charged a penalty. Handle your money carefully on those accounts because those penalties can go up to the $25 and more, so make sure that you always have enough money in your account when paying your bills. There is also a for basic bank account which is called managed account. Very often managed account comes with the monthly fee and have initial setup of costs.
Who can’t open a bad credit bank accounts?
There is a very small number of people that are not able to open a bad credit bank accounts even if they have declared bankruptcy in the past. Only if you have a criminal convictions for a fraud, you may have a struggle for opening a bank account with bad credit. Criminal record solely, will not stop you for having a bad credit bank account, although you must have some required identification such as driving license or a passport.
How do I find details of poor credit current accounts?
For anyone with a history of bad credit, a comparison service such as MoneySuperMarket will enable you to compare the basic bank accounts on the market to find the best option for you. You can then contact the providers and see which will accept a customer in your circumstances. This one-stop-shop makes it simple to see those current account providers who are willing to offer basic bank accounts to people with poor credit scores.
Opening Bank Account Online
This is just a suggestion to make you see that is possible to open a bank account online if you have a bad credit score.
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