Compare Bad Credit Current Accounts
What type of current account are you looking for?
- 5% AER (4.89% gross p.a.) fixed in-credit interest on balances up to £2,500*
- 12 month fee-free arranged overdraft available
- No monthly fee
Cashplus Current Account
- No Credit check required
- Instant approval
- Comes with FREE Creditbuilder facility.
ATM Withdrawal Fee
CostDebit Prepaid ATM
CardOneBanking Bank Account
- No credit checks
- Open to everyone with guaranteed acceptance (subject to proper identification)
- No charges for bounced Direct Debits or Standing Orders
ATM Withdrawal Fee
CostDebit Prepaid ATM
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Bad Credit Accounts FAQs
What is a bad credit account?
Bad credit accounts, sometimes known as prepaid accounts, are designed for people with poor credit scores, who would struggle to be accepted for a standard current account. They are available to users without the need for credit checks and can provide you with the ability to carry out basic functions, such as receive payments, withdraw cash and make payments via direct debit.
You may also be able to top up the account with cash yourself, and load money onto your debit card to spend as you please. However, each product’s services can vary hugely, so it’s important to check the details of any bad credit account you are considering, ensuring it offers you the services you require.
Who might need a bad credit bank account?
Having a very poor credit rating because of bankruptcy or CCJs, for example, can mean you are unable to accept a job that pays a salary into an account or pay bills that require direct debits to be set up. However, a bad credit account can provide you with access to these services that have become fundamental to everyday life for most of us. Bad credit accounts usually charge a monthly fee, however, and charges can also be incurred in other ways, such as using a card abroad, for example.
Can anyone open a bad credit account?
Bad credit accounts are usually offered by alternative organisations to banks and are managed and applied for online. You will usually be accepted for a bad credit account right away and no credit checks will take place. However, you must agree to the monthly charges and fees and will probably need to provide proof of ID and address to qualify for an account.
What services do bad credit accounts offer?
This varies from account to account but some of the services bad credit accounts commonly offer include:
- Accepting payments
- Setting up direct debits
- Access to a prepaid card
- Buying items online
- Taking out cash from an ATM
- Access to mobile apps to help manage your money
- Tools to help you build up your credit rating
Do bad credit accounts charge fees?
There is usually a fee charged for bad credit accounts and other charges might also apply for certain transactions. Some accounts charge no monthly fee and don’t charge for more basic transactions but will then charge a set fee for extra services, for example. Make sure you are aware of the charges and can meet them if you want to open a bad credit bank account.
How do I apply for a bad credit account?
Use the comparison table above to navigate to the deal you are interested in. You can then usually apply quickly online by providing some simple information and telling the provider how you wish to pay the fees and charges applied to the account.
Helpful links for current account issues
Financial Conduct Authority (FCA) - The UK financial regulator's website features lots of useful information for banking customers covering everything from knowing your rights to how to stop unauthorised payments.
Financial Service Compensation Scheme (FSCS) - The FSCS is the best place to find out if your bank is covered by the compensation scheme and for advice on making a claim.
Financial Ombudsman Service - If you've complained to your bank and are still having ongoing problems then the Financial Ombudsman is the next step - their website covers everything you need to know about making a complaint.
Money Advice Service - The government's Money Advice Service provides unbiased advice on choosing, opening and managing a current account.