Advanced Search


Below you can find useful information and FAQs on Bad Credit Bank accounts.


What is a Bad Credit Bank Account?

A bad credit bank account is usually simply known as a managed bank account, online bank account or internet banking account. It is an online bank account that side-steps the traditional bank. In other words, it is offered by an independent provider and the account is run purely online there is no high street branch.

Bad credit bank accounts can be used to:

  • Manage money
  • Make payments
  • Make transfers
  • Receive salary / wage
  • Set up Standing Order

Back To Top

Who Can Open a Bad Credit Account?

Almost anyone can open an account like this. In other words, you are not subject to a credit check before receiving an approval to open the account. Regardless of your credit history, ability to receive financial products or job history you will be able to open a bad credit bank account.

Generally, the main criteria to opening a bad credit bank account are as follows:

  • Proof of ID
  • UK residence
  • Over 18 years
  • Permanent address
  • Valid email address
  • Access to the internet!

You may have to provide proof of your address.

Back To Top

Is there an Overdraft Facility?

No. Bad credit bank accounts of this kind do not offer overdraft facilities. This is one of the reasons why their providers are able to offer the account to all kinds of people, regardless of credit history. An overdraft facility is a type of borrowing facility a bad credit bank account does not give you the ability to borrow money.

Back To Top

Can I Earn Interest?

No. As independent providers, bad credit bank account services cannot offer interest on the money in your account.

Back To Top

Can I Apply if I am Self-Employed?

In most cases, yes. Regardless of your employment history or present situation, you can usually open a bad credit bank account. Simply check this with the relevant provider in advance either by calling them directly or checking their terms and conditions.

Back To Top

What are the Additional Features?

Bad credit bank accounts offer various attractive features, including in most cases a prepaid credit card to go with the account.

You are probably familiar with prepaid cards they have been available in the UK for some years, and are compared on Which Way To Pay. For more detailed information on prepaid cards, please look at the relevant page in our Information Library.

A prepaid card is an ideal partner to your bad credit bank account it allows you to make payments on the internet, in shops and restaurants and to withdraw money from ATM machines. Like your account, the card does not carry a borrowing facility it works on a 'pay as you go' premise, meaning that it is up to you to load up the card with funds. With a bad credit account, the prepaid card will be linked to your online account.

Another excellent features to a bad credit bank account is the account manager. Your account is assigned with a personal manager based in the UK, who you can contact directly. No more call centres! This may not be offered by all providers to check in advance.

Back To Top

What are the Fees?

This depends on your provider, but generally there is:

  • A set up / registration fee
  • A regular admin fee (usually monthly)

A typical set up fee is around 25 and a monthly fee can be anything from around 10 to 15. Always check this in advance and compare providers. There are usually no penalty fees (such as a fee for bounced payments).

Back To Top

What are the Advantages?

A bad credit account has some obvious advantages:

  • No credit checks
  • Open to anyone
  • Online money management
  • No penalty fees
  • Prepaid card
  • Easy to open
  • Account manager

The fact that you no longer have to worry about a refusal to open a money account is great news and with no penalty fees and a personal account manager, you can free yourself of some of the bad features of a traditional bank account.

Back To Top

What are the Disadvantages?

There are one or two setbacks to a bad credit bank account, such as the monthly fee and set-up fee. Another aspect that might be less attractive to some people is that you cannot visit a branch on the high street yet with an account manager based in the UK who can be contacted directly, you can have peace of mind that you can contact a person and not an anonymous call centre.

Another disadvantage to this type of account is that you cannot have an overdraft facility and you cannot earn interest on your money. The absence of an overdraft facility is one of the reasons that makes this account open to all you cannot borrow, so therefore debt risk is minimised!

Back To Top


Please Note: is not authorised to give advice under the Financial Services and Markets Act 2000.

All of the Links, textural data, and image data is provided for informational purposes only.

Click here to view our Disclaimer






News and ChartsNEWS / CHARTS

For once we are seeing Car Insurance Prices Drop since 2014
31 August 2018 - Which Way To Pay
A statement released last week , states that Car Insurance can be dropping by as much as 11% .
Is Everything covered for that Big Day ? Wedding Insurance
31 August 2018 - Which Way To Pay
Planning your wedding is one of the happiest times in your life , however we always need to make sure that we are covered for every penny spent . Wedding Insurance is a Must
Forever monitoring your endowment policy ?
08 April 2017 - Which Way To Pay
If this is your case then why not sell your policy on to make yourself some cash , and get what its worth.
Telephone Enquiries Helpline
+44 (0) 207 386 5300

Register for newsletter