How to Obtain a Bank Account with Bad Credit

If you have bad credit, trying to obtain a bank account can be quite frustrating at times. There are several options available to you but whatever you do, don’t panic because there is a solution and you won’t be without for long.

There are many Internet sites and businesses that claim to be able to open a bank account for you for a handsome fee. These companies are not only rip off merchants who charge you for something you could easily do yourself, they also guarantee a service that no one can guarantee and a simple Google search will reveal that they have failed to fulfill their promises time and time again.

The only downside to the opening of a bad credit bank account is that you will have to go right back to basics. This means no cheque book, no credit facilities and in some cases (note I said some- not all) you will have to forfeit the luxury of a debit card. Most banks will provide one for you; they just won’t give you an overdraft.

The most obvious option that people tend to go with is Think banking; the disadvantage with these guys is that they kind of treat you like a monkey who can’t find his own bananas. They put so much of your income in a separate account for bills and payments so that you can’t touch it and the bills get paid.

I guess this would work for some people as it’s more of a routine and you don’t have a choice so you can’t get into any more debt. The thing I find irritating is that they do that, don’t give you a cheque book, don’t give you an overdraft, charge you ridiculous fees each month for the luxury of being treat like a complete idiot and slap a Solo card in your hard that is virtually useless.

The more sensible option would be to open a basic; no frills account with a high street bank and earn back their trust. Natwest offer a basic account called the Step account, it has the following features:

·         Free day to day banking

·         No overdraft or credit facilities

·         Debit card

·         Telephone banking

·         Online banking

Natwest Step Account

Halifax offer a basic account called the Easycash account that you can apply for online, it has the following features:

·         Visa Electron debit card

·         Telephone banking

·         Standing orders, direct debits and regular payments

·         You can pay in money via a cash machine

·         They don’t provide online banking

·         No overdraft or credit facilities

Halifax Easycash Account

RBS have a basic account called the Key account that you can apply for online, it has the following features:

·         Free everyday banking

·         No credit facilities

·         Interest paid on existing balances

·         Direct debits, standing orders and regular payments

·         Online banking

·         Over the counter service

·         Debit card

RBS Key Account

Barclays have a basic account called the Cash card account, it has the following features:

·         Debit card

·         Online banking

·         Telephone banking

·         Direct debits, standing orders and regular payments

·         No credit facilities

·         Free everyday banking

Barclays Cash Card Account

HSBC offer a basic account but they don’t offer a debit card or any services worth reporting. There will be plenty of other banks that offer accounts for people with poor credit I just included a few here to point out that they do exist, contrary to what the majority of people think.

The best idea is to shop around and find the best package for you, to be honest I would say that the best option out of the ones listed above is the RBS account. The reason I say this is that it offers all the same features as a regular current account-without the credit facilities.

I think for the most part it is down to personal preference and what you require from your bank account to begin with. I have been advised by several banks that after a period of six to twelve months of the account being kept in good standing, they will upgrade it to a regular current account at your request.