In the UK many people are stuck with their current bank because their bad credit rating means that they are unable to get an account elsewhere. Often if you have a low credit score, have an IVA or have been declared bankrupt you will be unable to open a bank or building society account.
Banks and building societies are at the end of the day profit making businesses, they are not a social service provider and you do not automatically have the right to a bank account. If the bank that you are applying for an account to decides that you would not be a profitable customer they can refuse your application. Often times people with a poor credit history will walk into a high street bank to open an account. The bank clerk will initially check your details and provisionally open you an account. What many people do not realise is that the bank will perform a credit check and if you do not pass they will close your account.
If you have been turned down for a high street account then you have a couple of options to open bad credit bank accounts. The first option is to apply for a basic account, these are accounts that are offered by some UK high street banks. They do not however have all of the features you would expect and instead offer a limited type of cut down banking. They may however suit you if all you need is a basic account.
The second option is to get what is called a guaranteed bank account, this offers all of the features of a standard account and is a good option if you need the extra facilities. There are no credit checks, no risk of going overdrawn and you are guaranteed to be accepted. There is usually a charge for this type of account although it tends only to be a small monthly fee.
