Opening a bank account with bad credit

Perhaps you’ve entered an IVA (individual voluntary arrangement) or have missed payments in the past and now you’re trying to get back on track. Getting yourself a new current account can become unnecessarily complex, but only if you don’t know where to look.

We did some research and found how you can open a bank account without being credit-checked, so that even if your credit score is poor, it doesn’t turn into a stressful experience.

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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 Cashplus 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 new 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 less features that are operated by the more traditional banks. We look at both of these latter two 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 two 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.
• 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 and they’re both fully licensed banks, while Revolut is really competitive if you also have to send money abroad fairly often. 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.

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.

Sort by:

Name	Product	Ratings	Account fees	Funding requirement	Interest (AER)	Arranged overdraft	Incentive	Representative example	Link
Cashminder		Not yet rated	£0	No minimum funding requirement	0% AER	N/A			View details		loading Fetching your data...
Cash Account		Not yet rated	£0	No minimum funding requirement	0% AER	N/A			View details		loading Fetching your data...
Basic Cash Account		Not yet rated	£0	No minimum funding requirement	0% AER	N/A			View details		loading Fetching your data...
FlexBasic		We say ★★★★★ ★★★★★ You say ★★★★★ ★★★★★	£0	No minimum funding requirement	0% AER	N/A			View details		loading Fetching your data...
Foundation		We say ★★★★★ ★★★★★ You say ★★★★★ ★★★★★	£0	No minimum funding requirement	0% AER	N/A	Free 24/7 Emergency Cash Service to withdraw up to £300 for online and telephone banking customers or £60 if not.		View details		loading Fetching your data...

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How much does it cost?

Nothing! Most digital accounts and basic accounts have no monthly fee 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

Frequently asked questions

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

  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 Cashplus and thinkmoney 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.