Opening a bank account with no credit check

We did some research and discovered how you can open a bank account without going through a credit check, so that even if your credit score is poor, it doesn’t turn into a stressful experience. If you are looking for a business account, we have written a guide on opening a business account with bad or no credit.

Latest reviews of bank accounts with no credit check

Can I get a bank account without a credit check?

Yes, you can. There are UK banking providers who specialise in offering personal accounts that you can open without a credit check, such as Zempler and thinkmoney. But be aware that this type of account often comes with a monthly charge and other fees attached.

Your other possibilities include digital-only accounts with the newer challenger banks, some of which are free to open and don’t involve credit checks unless an overdraft is applied for. Then there are basic bank accounts, free current accounts with fewer features that are operated by the more traditional banks. We look at both of these latter 2 options in more detail below.

How to open a current account if you have bad credit

The main reason why you are credit checked when applying for current accounts is that most will come with an overdraft facility. If you want to avoid a credit check at all costs because you think you may be refused, you have 2 main options:

• Challenger banks. Most digital-only banks allow you to open a full current account directly from their app. You’ll have to prove your identity, but they won’t check your credit score if you don’t apply for an overdraft on the account.
• Basic accounts. Most traditional banks offer them, although they aren’t heavily advertised. They are full UK bank accounts, but they’re missing some features (namely, you guessed it, an overdraft).

They’re both suitable options, but depending on your banking style and preferences, you may be better off with one or the other.

Challenger banks

New digital-only banks that promise slick apps and an effortless banking experience are proliferating in the UK, so you’re spoilt for choice. Monzo and Starling are among the most popular ones, while Revolut is really competitive if you also have to send money abroad fairly often. All 3 are fully licenced banks. Aside from allowing you to open a bank account without worrying about your credit score, these banks also offer a few other features that can be useful to keep your personal finances in good order.

• Great mobile apps. No more having to power up your computer to access all the features of your current account. We list our favourite mobile apps here.
• Budgeting features. Many of these apps automatically categorise your spending for you, telling you how much you’re spending and what for. Learn more about budgeting apps.
• Saving features. You can set money aside in separate sub-accounts, set saving goals for them and have your banking app round up and set aside your spare change.

The downside, as you might have guessed, is that they don’t have physical branches, so you can’t go and discuss your circumstances in person. However, many of them allow you to carry out some tasks, like depositing cash, in Post Office branches. Providers like Zempler, Starling and thinkmoney offer this service. Check the Post Office website for a full list of banks that permit cash and cheque deposits via the Post Office network.

Monzo and Starling also offer an overdraft facility with their accounts, but your credit history will only be checked if you actively apply for one.

Basic current accounts

If you’re more into old school banking and don’t particularly like the idea of trusting your phone with your current account access, basic accounts are the second best option to open a current account with bad credit.

Banks don’t advertise them too much because they prefer customers to which they can offer an overdraft (that they can make money out of). However, if you look for them, you should be able to find them easily, and some banks will offer one to you if you don’t pass the checks for a standard account.

Basic current accounts aren’t that different from standard ones: you’ll still get a debit card and will be able to receive your salary, make and receive payments and deposit and withdraw cash.

However, you usually won’t be able to access the best current account deals, such as switching incentives or interest paid on your balance. While this is less than ideal, a basic current account will do the job. Compare basic bank accounts here.

How much does it cost?

Nothing! Most digital accounts offer a free plan and basic accounts have no monthly fees at all. In some cases you may still be charged for some features, for example, using your debit card abroad, but with many challenger banks that’s free too.

You’ll also find some dedicated current accounts for people with bad credit that charge a monthly fee and offer some extra features to help you keep your finances under control. They are an option and in some cases those features can be useful, but be aware that they are not your only choice, even if you can’t pass the standard credit check.

Dos and don’ts for banking if you have bad credit

Opening a bank account with no credit and how it differs to bad credit

There’s a difference between having no credit and having bad credit. If you have bad credit, it’s usually because you haven’t managed credit well in the past – whether that’s through missing payments or failing to clear your debt on time.

However, if you have no credit, that usually means you’ve never borrowed before, so lenders have no way of knowing how likely you are to make repayments on time. You might have no credit history because you’re young or because you’ve recently moved to the UK and any credit history from your home country hasn’t come with you.

For this reason, lenders are likely to view you as higher risk and may be more reluctant to offer you an account – particularly if it has an overdraft.

Bottom line

If you have a poor credit history you’ll have less choice when it comes to opening a bank account. But don’t worry, there are still plenty of options available to you. Some of the traditional high street banks offer basic current accounts, which you’ll usually be able to access. These function like regular current accounts in many respects, but you won’t usually be able to benefit from an overdraft facility or any switching incentives.

Many digital-only challenger banks will also allow you to open a full current account directly from their app without a credit check, as long as you don’t have an overdraft.

So while things may be difficult while you try to rebuild your finances or start from scratch, you can rest assured that you’ll still be able to access basic banking services. You can also read our guide on how to improve your credit score.

Frequently asked questions

• Can I get an overdraft if I have bad credit?

  It’s possible, but you’ll find it much harder to get one. Some companies specialise in offering accounts to people with bad credit. In return for a monthly fee, they may also allow you to borrow money based on certain conditions, but be aware that it won’t come cheap. Have a look at Zempler if that’s the kind of account you’re after.

• Which documents do I need to open an account if I have bad credit?

  Challenger banks will usually only ask for your ID (your passport will do). To open a basic account, you’ll usually need an ID and in some cases also a proof of address.

• Can I open a joint account if I have bad credit?

  To open a joint account, both account holders must be eligible for that account, which means that if you don’t pass the credit check, you may not be able to open a standard joint account. However, you can still open a joint basic account. Among the challengers, both Monzo and Starling offer joint accounts. You won’t be credit checked, but you’ll both have to open personal current accounts with the same bank first.

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