If you have a poor credit rating, have been, or are about to go bankrupt or you have been rejected by your local bank for a standard account, then you may feel that you can’t open a basic bank account anywhere.

However, there are some banks which will accept people who have a poor credit rating. Barclays and the Co-op bank have a policy of accepting people who have been made bankrupt for basic bank accounts.

Bank account stipulations

Most people who feel they can’t open a basic bank account will pay a fee every month to open an account. This can be a costly exercise as withdrawing money can cost up to £10 a time.

The only problem that the Co-op and Barclays make is that if there is a record of fraud on your account they will not be able to provide you with a basic bank account.

Basic bank accounts

When you open a basic bank account you will need to provide proof of your address and one piece of ID. A credit check is not performed however an Identity check is carried out with a credit referencing agency.

You can use your basic bank account to set up direct debits and standing orders, use the visa card provided to withdraw money at an ATM for free and receive telephone, online and in-branch support. You will not be able to access an overdraft on a basic bank account and if you have an unpaid direct debit the bank will charge you a fee.

If you are about to be made bankrupt you should open a new bank account with a company which you don’t owe money too. That means if you owe Barclays money you should switch to another basic bank account provider where you don’t owe them any money.

Difference Between Other Banks

Many other high street banks will not provide a basic bank account product to people with bad credit or who could pose a credit risk. This can mean that people turn to expensive companies so they have access to a bank account. Some bank accounts which charge a monthly fee do so as a setup cost and then as you subsequently borrow money. This can be expensive and usually people who are using these fee-charging bank cards have money problems already.

If you’re using a fee charging bank account why not apply for a free basic bank account?