Banks in the UK provide basic bank accounts for those with poor credit scores. These can be found from many of the larger high street providers and may be an ideal solution if you have bad credit, but still wish to access more traditional banking services.
Basic bank accounts
Basic bank accounts are designed for those with poor credit histories who may have difficulty getting a standard bank account. Many high street banks and some building societies provide these accounts.
A fee-free basic bank account is an excellent way to boost your credit score and increase the likelihood of getting a standard current account in the future. But you must prove your identity and address, so make sure you bring along all necessary documents.
Your bank or building society must inform you if they offer a basic account and the conditions to open one. They also need to provide details on how to verify your identity and address.
The government created a scheme for basic bank accounts to give everyone access to mainstream banking services. These accounts don’t require credit checks and don’t permit overdrawn balances, making them ideal for those with past money troubles like bankruptcy, etc.
International bank accounts
If you need a bank account with bad credit or need one for travel and business abroad, there are plenty of options available. But before opening an international bank account, it’s essential to understand its requirements – and then decide which type would work best for your individual situation.
When opening an international account, you have two options: traditional banks or specialist online providers. Both provide various advantages such as low fees and competitive exchange rates.
You can also open a multicurrency account that allows you to manage your money across different currencies in one location. Doing so can reduce transaction costs significantly, especially if you frequently buy and sell items on foreign markets.
It is essential to make sure your international bank accounts are situated in a highly regulated jurisdiction. Doing so will guarantee your funds remain safe and secure from unauthorised access.
Business bank accounts
Business bank accounts can make life simpler for small businesses, particularly if they plan to trade internationally or already do. These accounts tend to be cheaper than other types of bank accounts and enable you to make international payments in various currencies.
When searching for a business bank account, there are plenty of options to choose from, including digital and traditional options. When determining which one best suits your needs, take into account which ones your business will use most frequently.
You have a range of account types to choose from, such as traditional checking and savings accounts to money market and cash management accounts. All offer features which can help you manage your finances more effectively, plus some potential interest earning opportunities if desired.
A current account is where you keep all of your daily money management. It typically receives regular payments like wages, pension income or benefits and allows for bill payment, withdrawal of cash, setting up direct debits and transferring money to friends and family members.
In the UK, there are various types of current accounts to choose from and each offers something special that makes it suitable for certain individuals or situations. Pre-paid bank accounts are especially advantageous to young people who may not yet be well acquainted with banking procedures.
A standard current account may be the best solution for those with bad credit scores, as they usually include a debit card and overdraft facility. However, be mindful that these can come with fees and charges and going overdrawn could negatively affect your credit rating.