Bank Accounts for Bad Credit (UK 2025)
A poor credit history shouldn't stop you from having a bank account. Compare UK basic accounts and find the right one for you.
Why You Need a Basic Bank Account
A bank account is the foundation of your financial life. Major banks in the UK must offer basic bank accounts to anyone, including those currently in insolvency. There are no hard credit checks required for these accounts. For those rebuilding their credit—such as following our post-IVA credit guide or our post-bankruptcy credit guide—a well-managed basic bank account is essential.
Basic accounts come with direct debits, standing orders, and a debit card, but they will explicitly offer NO overdraft and NO cheque book. If you are struggling with debt limits, you can learn more about debt solutions. Note that Debt Relief Orders (DROs) now have an increased debt limit of £50,000 and a £0 setup fee. During any insolvency like a DRO, IVA, or bankruptcy, your right to a basic bank account is protected.
Be aware of the right of set-off: your existing bank may close your account or take funds if you owe them money. This is why many people open a new basic account with an unrelated bank. If you want a more comprehensive view of your situation, review our credit rebuilders hub, start using a budget balancer, or get free debt advice.
Compare UK Basic & Second Chance Bank Accounts
In addition to high-street basic accounts, second chance accounts from challenger banks like Monzo and Starling often offer full standard accounts during and post-insolvency. E-money accounts are also available, though they are not technically bank accounts and may not offer full FSCS protection. Remember that for fully authorised banks, FSCS protection covers £120,000 per person per institution (increased from £85,000 on 1 December 2025).
Monzo
App-based challenger bank. Offers standard accounts during and post-insolvency.
- Great mobile app
- Instant spending notifications
- Pots for saving
Starling Bank
Award-winning app-based bank. Second chance accounts with no hard credit check.
- No monthly fees
- Good for travel
- FSCS protected
Barclays Basic Account
A no-fee account from a high-street bank for those who don't qualify for standard accounts.
- Access to branches
- No monthly fee
- Debit card included
HSBC Basic Bank Account
Simple, no-frills account for managing your money without credit facilities.
- High-street presence
- No monthly fee
- Helps build a banking history
Nationwide FlexBasic
A basic account from a building society, often with good customer service.
- No monthly fee
- Contactless debit card
- Access to branches
*Features and eligibility criteria are subject to change. Always check directly with the bank before applying.
How to Apply and Best Practices
Applying for an Account
To apply, you'll typically need proof of identity (like a passport or driving licence) and proof of address. Post-insolvency, once you are discharged or completed, you can apply for standard accounts, though you may face rejections initially. It's helpful to review our credit report guide to ensure your public records are accurate.
Managing Your Account
Once open, manage it responsibly. Use it as your main account for income and bills to build a positive banking history before considering moving on to credit builder cards.
Ready to Start Rebuilding Your Credit?
Once your bank account is set up, a credit builder card is the next powerful tool in your financial recovery toolkit.
Learn About Credit Builder CardsLast Updated: July 2026