The current strain on the economy has left many people struggling to cope with their personal finances, and whether they have a poor credit rating or have struggled with financial difficulties in the past, finding a bank that is prepared to let them open an account is now a priority. After all, having a bank account is no longer optional – paying bills, making purchases online and in store, and managing money now requires us all to be banking customers, but for those who have a less than perfect financial background, applying for an account can be more challenging. When many high street banks discover a history of poor credit, they are likely to deny applicants the opportunity of opening an account, leaving them wondering where they can turn. Many banks are now moving towards fee based services which makes it even more difficult for those with poor credit to gain access to the banking world. Luckily, there are plenty of banks that are prepared to offer accounts even to those with bad credits. These accounts are specifically designed to enable customers to gain a stronger financial footing while benefiting from the advantages of having their own bank account.

Comparing Basic Accounts for Poor Credit

Many people are surprised to learn that a lot of top banks offer a basic account for their customers as they are not widely publicised. Check the product menu of all of the main high street banks and see whether they offer this option for customers with poor credit, as even when it is not advertised as a main service, consumers are often able to open a basic account with no need for a credit check. A basic account offers many of the benefits of a standard checking account but with no credit facilities like credit cards or overdrafts. While some lenders do issue debit cards with these accounts, others only provide a cash card for withdrawing funds from an ATM. The good news about basic bank accounts is that there is generally no need for a credit check since virtually all applicants are accepted (although undischarged bankruptcy and fraud will affect an application). Online banking providers are often the best choice for those with bad credit as they generally have a more positive outlook and offer more impressive service and better deals.

Top Ranking Banks for Bad Credit Accounts

Here, we list the banks which are ranking among the best for providing bad credit accounts. In this list, we will look at any monthly fees levied, the type of card offered with each account and the facilities offered by each provider.

1. CardOneBanking Guaranteed Acceptance Bank Account

This provider charges a monthly fee of £12.50, in return offering account holders a prepaid MasterCard and the facility to have standing orders and £1.50 ATM withdrawals. There is no credit check for this account and no hidden charges for penalties or fees.

2. icount Pay Monthly

This good value bad credit account charges £9.95 per month, but gives account holders the facility to operate both standing orders and direct debits as well as ATM transactions for 50p. Holders are also issued with a prepaid MasterCard.

3. Acorn Account Current Account

This account has a fee of £9.95 per month and awards holders with a prepaid MasterCard and the facility to operate standing orders. ATM transactions incur a 50p charge.

4. eccount Money Current Account

Customers are charged a £12.50 fee per month for operating this account, although a promotional rate of £9.50 is available by entering a promo code. Account holders can buy a debit Visa card for this account for a fee of £12.50 and can enjoy 50p ATM withdrawals and the facility to operate standing orders. An extra bonus of this account is the 12% cashback offer at certain retailers.

5. U Account 0 Monthly

This great value basic account has no monthly fee and gives holders a prepaid MasterCard. ATM withdrawals are £1 and direct debits are permitted.

6. U Account £10 Monthly

This account has several benefits for the sum of £10 per month, including a contactless prepaid MasterCard, free ATM withdrawals and direct debits as well as a digital money manager.

7. U Account £5 Monthly

This account charges £5 per month, giving customers a free contactless prepaid MasterCard, access to a free digital money manager, the facility to operate direct debits and 50p ATM withdrawals.

8. Yorkshire Bank Readycash Account

This account has no monthly fee and gives customers the facility to operate both standing orders and direct debits as well as having free ATM withdrawals. Customers also benefit from a free Maestro debit card.

9. Clydesdale Bank Readycash Account

This bank offers the same deal as the Yorkshire Bank Readycash account.

10. Bank of Ireland Basic Cash Account

With no monthly charge, this account gives customers a free Maestro cash card, free ATM withdrawals and the facility to operate direct debits.