How to get bank accounts for people with bad credit

It is virtually impossible to function these days without a bank account and associated debit card. However, for people who have a poor credit history it is not always easy to successfully apply for a bank account.

There are bank accounts suitable for people with bad credit, although these tend to be the basic savings account. These type of accounts usually have an ATM card but no debit card, and you are not usually allowed to set-up direct debits, although some allow standing orders depending on the restrictions. Unfortunately, if you have been made bankrupt you may not even be accepted for a basic account. In this situation, you would have to bide your time, try and improve your credit rating and apply again when you have better record.

Some finance companies specialise in finding bank accounts for people with bad credit. However, they nearly always charge a one-off fee or a monthly 'membership' fee. You should not have to pay for this sort of information as these companies will not find a bank account to suit your needs that you could not find on your own. Some companies guarantee they will find you an account complete with chequebook and overdraft, in return for a fee. Again, if you are entitled to an account with those services, it is easier and cheaper to find it by yourself.

Comparison website MoneySupermarket compares regular bank accounts as well as bank accounts suitable for people with bad credit. Enter your details in to the mini application form and it will return results of the best bank accounts for your needs. This service is free and only takes a small amount of your time.

Before applying for any bank account, be aware that any account application that is turned down can leave a negative mark on your credit report. It is, therefore, important you are absolutely sure you want to apply and feel you have a good chance of a successful application before committing.

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