Having bad credit or no credit history doesn’t mean you can’t have a bank account. Here’s how to find an account that works for your situation.
Your Options with Bad Credit
| Account Type | Credit Check | Overdraft | Card | Best For |
|---|---|---|---|---|
| Basic bank account | No | No | Yes (debit) | Guaranteed acceptance |
| Digital bank (standard) | Soft/None | No | Yes | App-based banking |
| E-money account | No | No | Yes | Instant setup |
| Credit union | Varies | Sometimes | Varies | Community banking |
Basic Bank Accounts (Guaranteed)
All major UK banks must offer basic accounts to anyone who needs one.
What You Get
| Feature | Included |
|---|---|
| Debit card | Yes |
| Direct Debits | Yes |
| Standing orders | Yes |
| Online/mobile banking | Yes |
| Cash withdrawals | Yes |
| Overdraft | No |
| Cheque book | Usually no |
Basic Account Options
| Bank | Account Name | Notable Features |
|---|---|---|
| Barclays | Basic Current Account | Full mobile banking |
| HSBC | Basic Bank Account | Wide branch network |
| Lloyds | Basic Account | Good app |
| NatWest | Foundation Account | 24/7 support |
| Nationwide | FlexBasic | Building society |
| Santander | Basic Current Account | Cashback available |
| TSB | Cash Account | Local branches |
How to Apply
- Visit any branch with ID and proof of address
- Apply online (some banks)
- You cannot be refused if you meet basic criteria
Who Can Get a Basic Account
| Situation | Can Open Account? |
|---|---|
| Bad credit score | Yes |
| CCJs (County Court Judgments) | Yes |
| IVA (Individual Voluntary Arrangement) | Yes |
| Bankruptcy (current or discharged) | Yes |
| No credit history | Yes |
| No fixed address | Yes (with alternative ID) |
| Previously refused elsewhere | Yes |
Digital Banks Without Credit Checks
Many app-based banks focus on ID verification rather than credit checks.
Monzo
| Feature | Details |
|---|---|
| Credit check | Soft check only |
| Overdraft | Optional (requires eligibility) |
| Features | Pots, spending insights, instant notifications |
| Card | Hot coral debit card |
| Apply | App download, 10-minute signup |
Starling Bank
| Feature | Details |
|---|---|
| Credit check | Soft check only |
| Overdraft | Optional (requires eligibility) |
| Features | Goals, marketplace, round-ups |
| Card | Teal debit card |
| Apply | App-based, video verification |
Revolut
| Feature | Details |
|---|---|
| Credit check | No traditional check |
| Overdraft | No |
| Features | Multi-currency, crypto, budgeting |
| Card | Physical and virtual cards |
| Apply | Instant, app-based |
Chase UK
| Feature | Details |
|---|---|
| Credit check | Soft check only |
| Overdraft | No |
| Features | 1% cashback, round-ups, easy savings |
| Card | Metal card |
| Apply | App-based |
E-Money Accounts (Instant Setup)
E-money accounts aren’t technically bank accounts but offer similar functionality.
| Provider | Credit Check | Features | Limitations |
|---|---|---|---|
| Pockit | No | Instant setup, prepaid card | £0.99/month fee |
| Suits Me | No | No ID address proof needed | Monthly fee |
| Cashplus | No | Incoming payments, Direct Debits | Fees apply |
| Monese | No | Multi-currency | Monthly fee for premium |
Important Difference
| Bank Account | E-Money Account |
|---|---|
| FSCS protected (£85,000) | Not FSCS protected |
| Deposits held by bank | Funds safeguarded separately |
| Full banking regulations | Different regulatory framework |
E-money is generally safe but check how your funds are protected.
Credit Unions
| Feature | Details |
|---|---|
| Credit check | Often more flexible |
| Overdraft | Sometimes available |
| Savings | Required alongside account |
| Loans | Available to members |
| Eligibility | Based on community/employer |
Find your local credit union: findyourcreditunion.co.uk
Which Option is Best for You?
If You Want Guaranteed Acceptance
Choose: Basic bank account
- Cannot be refused
- At a major bank
- Full functionality minus overdraft
If You Want the Best App Experience
Choose: Monzo or Starling
- Modern, easy-to-use apps
- Soft check won’t harm credit score
- Extra features like spending insights
If You Want Instant Setup
Choose: Revolut or e-money
- Can be set up in minutes
- No wait for card (virtual card available)
- Good for immediate needs
If You Need International Features
Choose: Revolut or Wise
- Multi-currency accounts
- Low-cost international transfers
- Good for travel
Opening an Account: What You Need
Standard Requirements
| Document | Type |
|---|---|
| Photo ID | Passport, driving licence, national ID |
| Proof of address | Utility bill, council tax, bank statement |
| National Insurance number | For some accounts |
If You Don’t Have Standard ID
| Alternative ID | Where Accepted |
|---|---|
| Biometric residence permit | Most banks |
| EU settlement scheme letter | Most banks |
| Birth certificate + other ID | Some banks |
| Letter from support worker | Basic accounts |
| Letter from prison/probation | Basic accounts |
If You Don’t Have a Fixed Address
Options include:
- Use a care-of address (friend, family, shelter)
- Some banks accept hostel addresses
- Letter from support organisation
Building Credit with Your New Account
Even with a no-credit-check account, you can start building your credit history.
Steps to Improve Credit
| Action | How It Helps |
|---|---|
| Use account regularly | Shows financial activity |
| Set up Direct Debits | Demonstrates responsibility |
| Stay within limits | No failed payments |
| Register to vote | Confirms address on credit file |
| Get on electoral roll | Major credit score boost |
| Consider credit builder card | Builds payment history |
Credit Builder Options
After 6+ months of good account management:
| Product | Provider | How It Works |
|---|---|---|
| Credit builder card | Aqua, Capital One | Low limit, builds history |
| Loqbox | Loqbox | Savings that build credit |
| Tymit | Tymit | Soft check credit card |
| Monzo Flex | Monzo | Pay later, builds credit |
Common Questions
Will a Basic Account Help My Credit Score?
Not directly — basic accounts aren’t reported to credit agencies. But having stable banking helps you:
- Pay bills on time
- Avoid borrowing expensively
- Build a foundation for credit products
Can I Upgrade Later?
Yes. After demonstrating good account management for 6-12 months, you may be able to:
- Apply for a standard current account
- Get approved for an overdraft
- Access credit builder products
What If I’m Refused a Basic Account?
Banks can only refuse basic accounts if:
- You already have a bank account elsewhere
- You’ve been convicted of fraud
- You’ve previously had an account closed for misuse
If wrongly refused, complain to the bank and escalate to the Financial Ombudsman.
Summary
Best options for bad credit:
| Situation | Recommended |
|---|---|
| Guaranteed acceptance needed | Basic bank account |
| Want good app banking | Monzo or Starling |
| Need instant setup | Revolut |
| Rebuilding credit | Basic account + credit builder card |
| No ID or address | Suits Me or basic account with support |
You don’t need good credit to have a bank account. Start with what’s available, use it responsibly, and your options will improve over time.