Most people in the UK can open a basic bank account even with an adverse credit history. Banks require proof of identity and address, screen for fraud and insolvency, and may restrict features like overdrafts. Paying salary in and using the account responsibly improves your chances of an upgrade over time.
You can usually open a bank account even with bad credit
A poor credit history - late payments, a default, an IVA or a past bankruptcy - does not automatically stop you from getting a basic bank account in the UK. The financial system is designed so almost everyone can access day-to-day banking services such as receiving wages, making payments and setting up direct debits.What banks will check
When you apply, banks check identity and address and will screen for criminal activity such as fraud. That screening is standard for all new accounts. Banks also look for insolvency markers (for example, undischarged bankruptcy) and in some cases may restrict the type of account they offer. Some providers have been known to open accounts for people who are undischarged bankrupt, although terms tend to be stricter and access to features like overdrafts is usually blocked.ID and proof of address - what to bring
Most institutions accept a current passport or UK photo driving license plus a recent utility, council tax bill, bank statement or tenancy agreement to prove address. If you are not on the electoral roll, lenders and banks will accept alternative documents, but you may need a combination of identity documents or to verify digitally through third-party ID services.Types of accounts available
The UK offers "basic bank accounts" (no overdraft) that provide a debit card, incoming and outgoing payments, and often standing orders and direct debits. They don't typically include overdraft facilities or premium perks. You can apply in branch, by post or online; many banks now use digital identity checks and instant verification, which can simplify the process.How to improve your position over time
Using the account responsibly helps. Have your salary or regular income paid into the account, pay standing orders and any bills on time, and avoid bounced payments. Over several months of responsible use, banks may offer an upgrade or a standard current account with more features.When banks can refuse
Banks can refuse applications where there is a history of fraud or where they reasonably consider opening an account would pose a regulatory or financial risk. If an application is declined, you should receive an explanation and can shop around for a basic account elsewhere.Practical tips
- Bring at least two forms of ID and a recent proof of address.
- Consider starting with a basic bank account; use it to build a record of on-time deposits and payments.
- If you have an adviser (debt charity, insolvency practitioner), ask for help choosing the right account.
- If a bank refuses you, ask for the reason in writing so you can address any rectifiable issues.
- Confirm which UK banks currently accept undischarged bankrupts and under what conditions (policies vary by lender) [[CHECK]]
FAQs about Bad Credit Bank Accounts
Can I open a bank account with a default or IVA on my record?
Yes. Defaults or an IVA do not automatically prevent you from opening a basic bank account. You will need to provide proof of identity and address, and the account may not include an overdraft.
What ID do I need to open a bank account?
Commonly accepted ID includes a passport or UK driving licence plus a recent utility bill, council tax bill, bank statement or tenancy agreement. If you're not on the electoral roll, you may need alternative documents or a digital ID check.
Will opening a basic account improve my credit score?
Opening and using a basic account responsibly (salary paid in, bills paid on time) helps demonstrate reliable financial behavior. It can support future applications, but the account itself may not directly raise a credit score unless payments are recorded with credit reference agencies.
Can undischarged bankrupts open bank accounts?
Some providers will offer limited accounts to people who are undischarged bankrupt, but access is restricted and policies vary by bank. If this applies to you, check individual bank rules or seek advice from an insolvency practitioner.
What should I do if a bank refuses my application?
Ask for the refusal reason in writing. You can correct factual errors, provide stronger ID, or apply elsewhere for a basic bank account. Debt advice charities and Citizens Advice can also help.
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