Open a Basic Bank Account with Bad Credit

Bank Accounts for Undischarged Bankrupts & Adverse Credit Customers

Mar 27, 2009

When a consumer has a bad credit rating, a basic bank account is the answer. They are also the right bank account for undischarged bankrupts and those with CCJ's.

Financial exclusion due to low earnings or a bad credit rating led to the introduction of the basic bank account. Adverse credit happens as a result of missed payments, late payments, loan defaults and County Court Judgements or CCJ's. Basic bank accounts are suitable for all these categories of customer, as well as being a bank account for undischarged bankrupts.

Basic Bank Accounts for Those with a Bad Credit Rating

The Natwest Step Account is widely regarded as the most suitable basic bank account for consumers with a bad credit rating. A full counter service is offered to customers, along with a Solo card for making purchases in shops. Solo cards are available to under-18's and this can create issues with some online purchases. For example, transactions at gambling sites are likely to result in an ID request to prove age.

Provided that a basic bank account, such as the Natwest Step Account, is managed satisfactorily for a period of six months it will often be upgraded. It will, of course, depend upon how serious any bad credit is. It isn't a suitable bank account for undischarged bankrupts or those in an active Individual Voluntary Arrangement (IVA).

The Natwest Step account is available for all adverse credit customers and discharged bankrupts, but a certificate of discharge will be needed. The cost of this is currently £60.

Basic Banks Accounts for Undischarged Bankrupts

The Co-Operative Bank Cash Minder appears to be the best basic bank account for undischarged bankrupts or those with a very bad credit rating. The account also comes with a Visa Electron card which can be used for a range of Internet and high street purchases. Visa Electron cards are also available to under 18's and identification requests remain a strong possibility on certain purchases.

A lot of consumers think that having a bad credit rating will stop them from having a bank account. A basic bank account isn't the most exciting offer out there, but it is more than functional. It is a bank account for undischarged bankrupts, along with all those with adverse credit.

If a bad credit rating has been caused by default on a credit agreement signed-up to prior to April 2007, it is worth checking whether an illegal credit card or unenforceable loan agreement is in place. This could lead to the debt being written off and any adverse credit entries being removed.

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