Menu

Compare bad credit accounts

If you’ve had problems getting credit in the past or no credit history at all, these accounts – also known as prepaid accounts – could be your best option.

Loading accounts
Most popular Overdraft Interest rate Monthly account fee

Bank Account

Bank Account

  • Account details available in minutes
  • £9.95 per month or 2.5% Pay As You Go
  • No credit check & credit building facility through Creditbuilder
More info
Overdraft
0%
EAR
Interest rate
0.0%
AER
Monthly account fee
£9.95
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

Card One Banking Prepaid Bank Account

Card One Banking Prepaid Bank Account

  • No credit checks - guaranteed acceptance
  • No bounced payment charges
  • Free text alerts
More info
Overdraft
0%
EAR
Interest rate
0.0%
AER
Monthly account fee
£12.50
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

Current Account

Current Account

  • Guaranteed acceptance and no credit checks
  • Cashback rewards & VISA Prepaid card
  • Pay in at Post Office & PayPoint
More info
Overdraft
0%
EAR
Interest rate
0.0%
AER
Monthly account fee
£12.50
AER based on £1,000 deposits and meeting eligibility criteria. Overdraft based on being £500 overdrawn (excluding 0% overdrafts).

A current account is one of the most basic requirements. With a current account you can manage your finances, transfer money, withdraw cash (using a debit card), and set up standing orders and direct debits.

However, not everyone can get typical bank accounts. That’s because most current accounts also have credit facilities in the form of an overdraft, and because of that they are usually subject to credit checks.

A credit check evaluates how good you are at repaying credit and if you have a poor credit score because you’ve missed a payment historically for example, you may struggle to get a current account.

That’s where bad credit current accounts come in. They’re specifically designed for those with poor credit histories.

What are your options?

There are two types of bad credit current account available – basic current account and bad credit accounts.

Basic accounts are widely available, but you may not have heard of them as they’re not publicised by banks. Essentially they are a very simple form of current account without an overdraft, however they will still offer you the basic services.

If you want a current account that offers a little bit more then there are bad credit current accounts. These offer all the same services as a basic bank account as well as the ‘extras’, like overdrafts. However, they often come with a monthly fee.

It’s worth remembering that even basic bank accounts can cost you. If you set up a direct debit for instance, but there isn’t enough money in your account to cover the payment, the payment won’t go through and you’ll be charged a one-off fee of up to £25.

Are bad credit accounts worth it?

Applying for a bad credit bank account is very simple, as long as you know what you’re signing up for.

Providing you are comfortable paying the monthly fee – if there is one – and remember to review your credit score in a 3 to 6 months and move to a non-paying account, they can be a good option.

Improving your credit score

Showing you can make regular payments like direct debits and standing orders over a few months will go some way to repairing your credit score, as it shows future lenders you can meet your repayments.

You can do this with a basic bank account or a bad credit current account, the principle is the same – meet your repayments.

However there are other ways to improve your score. Possibly the simplest way is to ensure you are one the electoral register. Registering to vote shows you are at a fixed address, and is an important detail for creditors to confirm.

Another simple way to improve your score is to ensure you close any sources of credit you aren’t using. Old credit cards for example a still a source of credit. To a creditor, even if you’re not using the card, it still means you could spend anything up to your credit limit any time.

Finally it’s worth ensuring the information on your credit file is accurate and up to date. It’s not unusual to find mistakes on your file, particularly around your registered address, so it’s worth checking.

To do that start by getting a copy of your statutory credit report from each of the three credit reference agencies – Experian, Equifax and Callcredit. Simply look for the £2 statutory or basic credit report on their websites and check the details.

uSwitch Limited is a credit broker, not a lender, for consumer credit products.

uSwitch services are provided at no cost to you, but we may receive a commission from the companies we refer you to.