Bank Account Articles

What is a Bad Credit Bank Account ?

A bad credit bank account is a bank accounts that is open to people with a bad credit history or for those who have suffered some form of bad credit in the past.

A bad credit bank account is also referred to as a basic bank account, which was originally introduced under a Government backed scheme to help those who had been refused for a 'normal' type bank account, often offered by the high street bank providers, as due to their past bad credit activity they would not be eligible for one of their regular type bank account.

When was a Bad Credit Bank Account introduced and why are they needed?

Bad credit bank accounts were introduced initially to help give access to a bank account for those individuals who would have been refused a bank account via the high street banks 'normal' bank accounts on offer.
Often associated with those with bad credit or people on lower incomes, but mainly because of their past credit history or previous adverse credit activity.

Although there will appear to be other bank accounts available, because of a bad credit history they won`t be open or readily available to everyone, so bad credit bank accounts have an important part to play especially in the modern world whereby everything is done either on a debit card or over the Internet, making having a bank account an essential everyday necessity.

Has there always been bad credit bank accounts available?

After the recent world wide recession many UK individuals have struggled with their finances meaning obtaining financial products has become increasingly difficult due the increasing numbers of those with a poor credit rating.

Bad credit bank accounts are available to just about anyone, but they can be particularly useful for people who have been turned down when applying for other accounts and/or haven`t had any banking experience in the past in this country.

So, if you have had your bank account application declined or been refused for a new bank account, you may need to look for a bank account for those with bad credit. Alternatively, if you have already got a high street bank account but are having problems with charges or have experienced some difficulties managing your finances, you may need to open a bank account more suitable for those with bad credit.

What do bad credit bank accounts offer?

Most bad credit bank accounts offer a basic banking service you would normally expect with any regular bank account but without any credit facilities like an overdraft.

The main features include the facility to accept payments such as wages, benefits etc, a cash card, which like a debit card will allow you to withdraw your cash and make payments like any other similar type cards and the facility to set-up standing orders and direct debits to pay for your regular monthly outgoings.

There are a growing number of these types of bad credit bank accounts available including the ones from CardOne Banking which is Free to open with no fixed contract and Think Banking which is £25.00 to set-up and £14.50 a month, meaning there are bank accounts available even if they are not ones found on the high street.

Other things to note regarding band credit bank accounts: bad credit bank accounts generally don`t tend to offer a branch service, a cheque book or any overdraft or credit facilities.

There are some real benefits having a bank account especially in the modern world so don't let having a bad credit history stop you applying for a bad credit bank account.

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