Basic Current Accounts for People with Bad Credit Ratings in the UK

A basic bank account is a type of current account offered by some of the major banks and building societies as well as several other reputable financial institutions in the UK. There are a lot of people with bad credit caused by encountering problems with debt in recent years and these types of current accounts are often suitable bank accounts for bad credit rated applicants. This is because, often, no credit check is undertaken, so those with a poor credit rating are quite likely to be accepted when they apply online for a bank account for bad credit, normally by completing a simple form. As there are so many companies offering bad credit bank accounts, it’s best to compare as many basic bank accounts as possible, so that you open the one that meets your requirements.

COMPARE BASIC BANK ACCOUNTS

Cash Plus Account

Monthly Fees Payable

One-off fee of £5.95

  • Monthly administration fee of £9.95.

Mode of Operation

  • Online
  • Phone
  • Post Office
  • SMS
  • Mobile App
  • ATM

Account Features

  • Have wages paid direct for free (see website for more details)
  • Make up to 20 payments and standing orders a month for free (see website for more details)
  • Withdraw cash for free in the UK
  • Free purchase protection
  • Creditbuilder to help you repair your credit rating.
  • Cashback Rewards

Account Review Page

To find out further information please visit our Cashplus Account Review page.

Apply for an Account

Or if you’re looking for a business account then please click here to apply instead.

Card One Money

Monthly Fees Payable

No application fee

  • Monthly administration fee of £12.50
  • £5 per month to add a second cardholder.
  • £1.50 every time you use an ATM in the UK to withdraw cash.

Mode of Operation

  • Online
  • Phone
  • Branch
  • Post Office
  • SMS

Account Features

  • No hidden charges for unpaid direct debits!
  • Open to everyone with guaranteed acceptance (subject to proper identification)
  • Online, text and phone account access.
  • UK call centre.
  • Free text alerts each time money is paid in.
  • Free text alerts if bills cannot be paid.
  • No bounced payment charges.
  • Direct Debits with enhanced security

Account Review Page

To find out further information please visit our Card One Account Review page.

Apply for an Account

Or if you’re looking for the card one money business account then please click here to apply instead.

Tuxedo Eccount

Monthly Fees Payable

One-off fee of £12.50

  • Monthly administration fee of £12.50
  • Other fees such as £0.50 for each withdrawal from a UK ATM.

Mode of Operation

  • Online
  • Phone
  • Post
  • Post Office
  • SMS
  • Mobile App

Account Features

  • No credit checks
  • No bank account needed
  • A modern convenient alternative to carrying cash
  • It can be used in over 32 million locations worldwide including 1.5 million ATMs – or wherever you see the MasterCard Acceptance Mark
  • Can top up your card online
  • Use your card to shop in stores, online or by phone
  • Chip & PIN secured

Account Review Page

To find out further information please visit our Tuxedo Eccount Review page.

Apply for an Account

THE U ACCOUNT

Monthly Fees Payable

No application fee

  • Monthly Administration Fee – 3 Price Bands – £0.00 p/m, £5.00 p/m and £10.00 p/m.

Mode of Operation

  • Online
  • Phone

Account Features

  • Set up direct debits/standing orders to pay regular household bills.
  • Contactless prepaid debit MasterCard to make cash withdrawals and purchases worldwide.
  • Wages, salary, pension and benefits paid in automatically. Pay in cash using Paypoint outlets.
  • Money Manager enables you to manage your account online.
  • U Points are provided when purchasing items at certain retail outlets using your U prepaid debit MasterCard. These points are converted into cash each month.
  • Extra Accounts can be opened to assist budgeting

Account Review Page

To find out further information please visit our U Account Review page.

Apply for an Account

FURTHER INFORMATION

Apply for the basic bank account that best fits your needs

As you can see from the above account comparison chart of some of the companies that offer basic accounts, they provide a number of features and benefits some of which are similar to each other. Their account opening requirements may vary from one another as well as any charges/fees they may or may not impose. Once you have identified the one that you feel may be most suitable for yourself, you may wish to visit their website and, before applying, read about the account in detail so that you are confident that it meets your needs when you submit your application.

What are basic current accounts?

We trust that you find the following information of use when considering whether a basic bank account is suitable to meet your requirements.

Basic bank accounts enable you to pay monies in whether that is in the form of a salary, wages, pension, benefits, cheques or cash. You are either provided with a debit card or a cash card enabling you to withdraw cash from ATMs in the UK and purchase goods or services either in a high street shop, online or by telephone. The card can often be used overseas at ATMS and in shops but you should check well before traveling. Sometimes the debit card is a pre-paid one that is topped up. You can set up direct debits and/or standing orders to pay your regular household bills such as your mortgage, rent, council tax, electricity and gas bills.

Some companies provide a UK based call centre that may be open 24/7 and you could have access to a Personal Account Manager to help run your account. You are often provided with online banking meaning that you can control your current account at all times.

A basic current account would not normally provide a cheque book or an overdraft facility, although there are banks that offer bad credit credit cards as a possible alternative financial solution.

How do I open a basic account and can I apply online?

As with bad credit loans and cards, the way that you can apply to open a basic bank account could vary depending upon whom you open an account with. For instance, the majority will offer the facility to apply online to open an account or you may be able to complete an application form over the telephone. If you are opening a bank account for bad credit with one of the major banks or building societies then you may be able to call into one of their branches in the town or city close to where you live or work.

The sort of information that you may be asked to provide on an account opening form could include;

  • Your name
  • Your address (that you have lived at for the last 3 years)
  • Your date of birth,
  • Your marital status
  • Your occupation.

The major banks and building societies may do a credit reference search on you as a matter of course but may offer you a range of basic bank accounts even if you have a poor credit history. Certain other financial institutions that tend to make a monthly charge for such accounts usually do not do a credit check on you.

Because so little information is usually asked for on a form, it should only take a few minutes to apply and you could get an instant decision as to whether your application has been successful.

How much do basic bank accounts cost to open?

When considering whether to apply for one of the bank accounts for bad credit you should establish if there is an application fee to do so and/or a monthly administration fee.

The major banks and building societies do not tend to make such charges but those financial institutions that do not normally require a credit reference search as part of their account opening procedures often impose one or both of the above fees. Some may also charge to use ATMs to withdraw cash in the UK and/or overseas.

You should also find out if other charges may apply.

What documents will I need to apply for a basic current account?

When applying to open a basic bank account you will be pleased to read that there is usually very little documentation required to support your application.

The company that you have applied to open your account with will need to identify you and prove that you live at the address you have stated on the application form. To do this many companies use electronic means. However, when this is not possible, you may be asked to provide the likes of a full current UK passport or current UK photocard driving license to prove your identity and something like a recent utility bill or bank statement to confirm your address.

Who are basic accounts suitable for?

A basic bank account is usually suitable for someone that is a resident of the UK, who is over the age of 18 and who may have struggled to open a standard current bank account for bad credit reasons. However, basic bank accounts are also suitable for people who prefer a simple to operate current account even if they do not have an adverse credit history. With so many companies offering bank accounts for bad credit you are likely to be spoilt for choice when it comes to looking into bad credit bank accounts so do take your time when deciding the one that you feel is most suitable to meet your requirements.

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