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There are several different types of bank accounts. To name just two: current accounts and savings accounts.

For many people, getting a bank account isn’t difficult: all they need to do is apply for one at their local bank and provide proof of identification. However, some people may find that they aren’t eligible for an account because of something in their financial history that has affected their credit rating. Instead, they may be offered a ‘bad credit bank account‘.

Poor credit rating

Sometimes, people have a poor credit rating through no fault of their own. For example, their income may have dropped (or their essential expenditure may have gone up) meaning they couldn’t afford repayments to their debts, for instance, or their utility bills.

When a bad credit bank account doesn’t require a check on an individual’s credit rating, it means anyone can get one – providing they can prove their identity.

Improve and protect your credit rating

If you are worried about your credit rating preventing you from getting a bank account then you could take steps to improve it – for example, you could improve your budgeting skills.

Budgeting is all about controlling and understanding your finances. Budgeting allows you to see how much money you earn/receive, and where your money goes each month.

This can help you make sure you have enough money left each month to cover all your financial commitments. This should help you avoid missing payments and damaging your credit rating, helping you improve your chances of being accepted for a ‘full’ bank account from a high street bank.

You may find this bank account guide useful:
http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf