Bank Account Articles

Bank Accounts for Bank Credit Individuals.

If you've had any problems with your finances in the past, you will know how difficult it is getting any financial service including the opening of a bank account. The main reason for this is you will have a bad credit history and if you apply for any financial service, including applying for a bank account, your past credit activity will be checked meaning you will almost certainly be declined or refused.

Having any form of bad credit all too often means you can't get the financial services you need, whether it's a loan, a mortgage - or even a bank account.

So what is bad credit and why would my bank account application be declined because of it?
Below is a list of possible things which may categories you as a bad credit risk:

• CCJs (County Court Judgments)
• Bankruptcy
• IVAs (Individual Voluntary Arrangements)
• Mortgage / rent arrears
• Poor credit ratings

Generally all high street bank account providers offer bank accounts which everyone can apply for however during their opening process they may well perform a credit check on you which, if you have had past credit problems, will be highlighted meaning your new bank account application could be declined.

Should this be the case, it will then show on your credit report and when you apply elsewhere, that too will show along with all your other past credit problems, meaning you will almost certainly be declined again.

What are my options if I have a a bad credit history and have been refused for a high street bank?
Having a bank account in the modern world is no longer considered a luxury but more a necessity as almost every employer pays their staff directly in to their bank account and the vast majority of regular bills are settled that way to, so without a bank account you will struggle with running your day to day finances. There are some options and the best available one is to find a bank account where there are no credit checks as these are becoming ideal solutions for those with a bad credit history.

There are several currently available and they all seem to differ in one way or another, however they will all guarantee you no credit checks meaning that any past credit problems you may have had will not be considered, so as long as you can identify yourselves (to satisfy the anti money laundering regulations, then you will be able to open a new bank account.

There is generally a cost involved in opening or running these bank accounts however if you have had any bad credit, your options available will be very limited although as more choices become available, so the cost should become more competitive. Already there are free to set-up bank accounts for bad credit individuals (some companies charge a set-up fee) with no fixed contracts, meaning you can cancel at any time and will not be tied in for a long period.

So there are options out there and bank accounts for bad credit individuals are available for those who have been declined or refused an account so don't let having a bad credit rating stop you having access to a fully functional bank account.

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