If your credit history is less than ideal, opening a bank account doesn’t need to be an overwhelming process. With many personal bad credit UK bank accounts available that don’t require you to undergo a credit check and still provide all the usual features like debit card and cheque book access, don’t despair – there are plenty of alternatives.
No credit check
One of the benefits of personal bad credit uk bank accounts is that they usually don’t require a credit check. They’re usually cheaper than their conventional counterparts and can be an effective way to rebuild your credit score.
However, it’s essential to make sure you select the correct option. A no credit check account might come with steep fees and other costs associated with them, so read all details carefully before committing.
To obtain a no credit check uk bank account, utilise an online comparison site that will offer impartial advice on the top providers in your region. They’ll highlight each bank’s features and functionality, plus show you which banks have competitive rates and offers. Furthermore, they’ll let you know which bank’s customer service is superior so that you can make an informed decision as to which one is ideal for you.
Most personal bank accounts for people with poor credit in the UK do not offer an overdraft facility, as banks generally feel that this kind of financial choice is not secure enough for customers with such histories.
Avoid an overdraft by staying informed about your account. Many high street banks provide text or email alerts to let you know if your primary checking account falls below a certain amount.
However, many overdrafts come with a fee. These charges can be higher than what debit card transactions incur and could become quite costly if you’re frequently using your overdraft.
If you find yourself frequently using your overdraft, ask your bank if they will remove the charge from your account. They might also agree to reduce or waive interest charges associated with an overdraft.
No monthly fee
If you’re moving to the UK from abroad or have bad credit history, getting a personal bank account may be challenging. There are various options available such as digital-only accounts with challenger banks that don’t require credit checks or minimum balance requirements.
These accounts, sometimes referred to as ‘basic’ or ‘free’ current accounts, may be quite limited in what services they offer but are free from most fees. Most don’t charge for failed Direct Debits or standing orders but may charge if money is taken out at a cash machine at a UK bank, building society, or Post Office; or if purchasing items using foreign currency.
Most UK banks provide a selection of free current and savings accounts. These range from basic to classic accounts, student to under-19s accounts, all offering features like insurance, credit interest and other rewards.