A bad credit bank account is specifically designed to help people with past credit indiscretions. Just as an adverse credit history makes it more difficult to borrow money, opening an account can be just as challenging. The UK government has sought to address this issue with the introduction of the basic bank account, which doesn't involve credit scoring at any stage of the application process. This means that they are suitable bank accounts for undischarged bankrupts.
Correct Mistakes Before Applying for a Bad Credit Bank Account
Not being able to get an account can be the result of credit report errors. Order a report and validate that all the information held is completely accurate. Provided the appropriate supporting information is provided, incorrect information can be amended through directly through credit reference agencies. If this is the reason for credit problems, rectifying the issue could quickly lead to approval.
Basic Bank Accounts for Bad Credit
In order to prevent social exclusion, banks are under a lot of pressure to provide those with adverse credit a basic bank account where direct debits and standing orders can be paid. There won't be an overdraft facility and there may be restrictions on counter usage, but it still serves a useful function.
