Compare  Bad Credit Current Accounts

However, there are basic current accounts designed to help if you have bad credit, that come with features to stop you overspending and limited access to borrowing additional money.

What is a bad credit current account?

A current account for someone with bad credit is normally referred to as a basic current account, and comes with restricted options to ensure you don’t overspend and accumulate more debt.

Restricted features will allow you to deposit money, spend using a debit card or cash card, transfer money and set up direct debits. However, you won’t be able to access an overdraft, use a cheque book or set up standing orders.

What is the best current account if I have bad credit?

Any account that stops you from accumulating more debt is ideal if you have bad credit, and gives you time to improve your credit score.

As mentioned above, a basic current account is an opportunity to still manage your money, but without putting yourself at risk of picking up more penalty charges. You might want to think about the following when searching for a current account:

• Credit check – most basic current accounts won’t require you to be credit checked when you apply, which means you’re less likely to be rejected if you have a bad credit score
• Avoid overdrafts – as much as overdrafts can be useful with standard current accounts, they can also lead to additional fees if you start using it, so they’re best avoided so you don’t increase your debt
• Avoid monthly fees – some current accounts such as packaged current accounts will charge a monthly fee in return for certain benefits. If you’re looking to budget and improve your credit score, try to avoid these accounts completely

Can I apply for a bad credit current account?

Given that many basic current accounts are available without a credit check, it’s highly likely that whatever your credit score, you will be accepted. It’s always best to check your credit report anyway, just so you can find out what your credit score is and find out ways to improve it.

Whilst you might be eligible for a bad credit current account, if you have a good credit score you might want to stick to a standard current account, as this will offer a lot more benefits simply for owning the account.