If you have a less-than-perfect credit rating, then you may have experienced trouble finding a bank account. If you have some money but are unable to get an account, the situation can be very frustrating.
In a sense, it's a catch-22 situation - you want a bank account that can prove you are responsible with your money, but you can't get access to the facilities to prove it!
Thankfully for you, you may be able to get a 'bad credit' bank account - a bank account that does not require a credit check, and is therefore open to people who have experienced financial difficulties in the past. This can be a lifeline for anyone who has struggled to get a bank account, and their may be fewer restrictions on your spending activity than you think.
What can make finding a bank account difficult?
You may have found it difficult to get a bank account if:
• you have been issued a CCJ (County Court Judgment)
• you have been made bankrupt, or have entered an IVA (Individual Voluntary Arrangement)
• you have a history of arrears (e.g. mortgage, bills or debt repayments)
A bad credit bank account provider could help you, even if you've had difficulty with other providers.
Why are bad credit bank accounts important?
In general, a bank account is important for anyone who wants to make the most of their money - and people with a poor credit history are no exception.
Many employers will only pay salaries into a bank account. This means that without a bad credit bank account, your employment opportunities may be limited, even if you clearly have the skills for the job.
Having a bank account gives you access to other facilities. For example, a bank account can allow you to pay bills by direct debit, which as well as being convenient can save you money.
Keep your money safe and secure. Putting your money into a bank account, rather than keeping it in your wallet, can give you peace of mind in knowing that your money is in a safe place.
Gain interest on your purchases. The traditional idea of keeping money in a safe might be relatively secure, but it won't gain you any interest. So long as you stay in credit most of the time, keeping your money stored in a current account should gain you money in the long run.
For more information on
bad credit bank accounts a professional debt advisor could help.
