Bad credit current accounts

Compare bad credit accounts

Bad credit current accounts offer the basic features of a standard current account but are available to those with a poor credit score. You can compare the best accounts at MoneySuperMarket.

Current accounts for those with bad credit - Ordered by monthly fee - lowest to highest

 

Cashplus

Freedom Current Account

Monthly fee

Product Type

Account

Customer service rating

Great (75%) Ok (15%) Poor (10%)

Customer service ratings provided by users of

Operate by
  • Online
  • Phone
  • Post Office
  • Mobile App
  • ATM
  • Online Banking
  • Mobile App
  • Overdraft Facility
  • Direct Debits
Great for:
  • FREE UK ATM Withdrawals, FREE Purchases, NO Monthly Fee
  • Overdraft up to £250 and £1000 Direct Debit cover available – subject to approval
  • Instant online approval. No credit check to apply
But be aware that:
  • One-off £5.95 card issue fee
Exclusive

MoneySuperMarket customers will receive £10 FREE upon first load of £50. You can't get this offer on any other comparison site

iCount

iCount Current Account - Pay As You Go Tariff

Monthly fee

Product Type

Account

Customer service rating

Currently unrated

Operate by
  • Online
  • Phone
  • In Branch
  • Post
  • Post Office
  • SMS
  • Mobile App
  • Online Banking
  • Direct Debits
  • Standing Orders
  • Mobile App
Great for:
  • Online Banking
  • Easy application, instant acceptance with no credit checks
  • Account number and sort code details are generated immediately
But be aware that:
  • There is a fee of £0.75 per UK ATM withdrawal
  • There is a dormancy fee if the account isn't used for 120 days
Cashplus

Deluxe Current Account

Monthly fee

Product Type

Account

Customer service rating

Currently unrated

Operate by
  • Online
  • Phone
  • In Branch
  • Post Office
  • SMS
  • Mobile App
  • Online Banking
  • Mobile App
  • Direct Debits
  • Overdraft Facility
Great for:
  • Up to £250 overdraft and £1,000 Direct Debit cover available - subject to approval
  • Free UK ATM withdrawals, Direct Debits and Standing Orders
  • Add Creditbuilder to your account at no extra cost
But be aware that:
  • Must be a UK resident aged 18+
iCount

iCount Current Account - Pay Monthly Tariff

Monthly fee

Product Type

Account

Customer service rating

Currently unrated

Operate by
  • Online
  • Phone
  • In Branch
  • Post
  • Post Office
  • SMS
  • Mobile App
  • Online Banking
  • Direct Debits
  • Standing Orders
  • Mobile App
Great for:
  • Online Banking
  • Building credit rating
  • Account number and sort code details are generated immediately
But be aware that:
  • There is a £9.95 monthly fee
  • There is a dormancy fee if the account isn't used for 120 days
Cardone Banking

CardOneBanking managed Account

Monthly fee

Product Type

Account

Customer service rating

Currently unrated

Operate by
  • Online
  • Phone
  • In Branch
  • Post Office
  • SMS
  • Mobile App
  • Cashback
  • Online Banking
  • Standing Orders
  • Text Alerts
Great for:
  • Guaranteed acceptance
  • Receive a Chip & PIN debit MasterCard®
But be aware that:
  • £1.50 charge for ATM withdrawals in the UK
Exclusive

Receive £10 cashback, no set up fee & no monthly fee for 12 months

eccount money

current account

Monthly fee

Product Type

Account

Customer service rating

Currently unrated

Operate by
  • Online
  • Phone
  • Post
  • Post Office
  • SMS
  • Mobile App
  • Online Banking
  • Mobile App
  • Standing Orders
  • Text Alerts
Great for:
  • Earn cashback rewards at participating retailers
  • FREE mobile app
  • No credit checks
But be aware that:
  • There is a £12.50 monthly fee
  • 50p charge for ATM withdrawals in the UK
thinkmoney

Managed Account

Monthly fee

Product Type

Account

Customer service rating

Great (40%) Ok (20%) Poor (40%)

Customer service ratings provided by users of

Operate by
  • Online
  • Phone
  • Post
  • SMS
  • Mobile App
  • Post Office
  • Online Banking
  • Standing Orders
  • Direct Debits
  • Switching Service
Great for:
  • No credit checks when you apply for this account
  • Get help with budgeting from a Money Manager every month
But be aware that:
  • You must be at least 18 years old to open this account
  • You'll have to pay a £17.50 monthly fee, or £24.50 if it's a joint account

 

See more current accounts

Current accounts. Trust us to explain them simply

Guides

  

Bad Credit Current Accounts

The vast majority of us require a current account to help us manage our finances, but if your credit score isn't up to scratch, you could find it a struggle to get one.

If this sounds like a familiar story, it's worth applying for a bad credit current account, designed specifically for those with poor credit ratings.  

There are generally two types of account to consider – a basic bank account or a managed bank account. 

Basic bank accounts are offered by many of the big high street banks and are free-of-charge. They won’t offer an overdraft or chequebook but will come with a debit card with which you can use to withdraw cash from an ATM and pay for items in stores and online.  

But some of these accounts will still require a credit check to be carried out – and if you have a criminal conviction for fraud or are an undischarged bankrupt, you're very likely to be turned away.   

Managed bank accounts, on the other hand, are less likely to require a credit check. But, in return, you will usually have to pay an opening fee and/or a monthly fee for operating the account. 

Who are bad credit current accounts suitable for?

If your credit rating is fairly low, perhaps because you've missed several bill repayments or been made bankrupt in the past, you could find it hard to get accepted for a standard current account. 

But, as bad credit current accounts have more flexible acceptance criteria, you won't be automatically turned down.  

However, it’s often the case that banks won't offer you a bad credit current account unless you specifically ask – but by doing this or comparing accounts at MoneySuperMarket, you won't have to miss out.

What do bad credit current accounts offer?

With a bad credit current account, you'll be able to pay your bills and rent or mortgage repayments by direct debit. 

Paying by direct debit will ensure you never miss a payment, which, in turn, will help you to build up your credit history. As you do this, you'll increase your chances of being accepted for a more competitive standard current account in the future.

But paying by direct debit also means you could qualify for a cheaper deal on certain household bills. Many energy companies, for example, will offer a discount to customers paying by direct debit.

On top of this, you'll be able to arrange for your salary, benefits and tax credits to be paid into your bad credit current account. 

Managed accounts, on the other hand, tend to come with a prepaid card which you must top up with funds in advance. You can then use this card to make purchases as normal, and a number of cards even offer cashback on your spending. In addition, you can use the card for cash withdrawals, but be aware you might have to pay a fee.  

What are the disadvantages?

The main drawback to managed bank accounts is that they can be expensive. You could be paying as much as £12.50 to set up the account and a further £12.50 a month for the service charge - plus ATM withdrawal fees on top.  

So if you plan to apply for a managed account, be sure to shop around and compare fees carefully – you can do this right here at MoneySuperMarket. 

Another drawback to bad credit current accounts is the lack of overdraft facility. However, this isn't necessarily a bad thing as it's easy to become dependent on an overdraft, and not having one can encourage you to manage your finances better. But be aware that if there are insufficient funds in your account when a direct debit is due to go out, you could be charged a fee. 

In addition, current accounts for those with poor credit ratings are not competitive. This means you won't earn interest on in-credit balances as you would do with the most competitive standard current accounts. 

But, on the plus side, current accounts for those with bad credit scores are a great starting point and as you build up your credit rating, you'll have a greater chance of being accepted for a more competitive standard current account in the future.

You can compare a wide range of bad credit current accounts here at MoneySuperMarket.