Guaranteed Bank Accounts - No Credit Check | moneyfacts.co.uk

Guaranteed Bank Accounts - No Credit Checks

  - No credit checks when you apply, no hidden fees, usually no overdrafts, and you are guaranteed to be accepted regardless of your credit status.

Guaranteed Bank Accounts

Compare
Up to 3 products
side by side
Monthly
Charge
Allow Standing Orders or Direct DebitsCard TypeAdditional InformationApply Today

£9.95 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • £250 arranged overdraft available
  • Monthly account fee payable
  • £10 redemption fee on current account closure
Details...
Go to Site

None
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • £250 arranged overdraft available
  • Debit card transaction fees payable
  • £10 redemption fee on current account closure
Details...
Go to Site

None
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • Earn cashback as U points
  • £1.00 monthly dormancy fee after 60 days of inactivity
  • Mobile app and budgeting tools available
Details...
Go to Site

£5.00 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • Earn cashback as U points
  • £5 monthly fee
  • Mobile app and budgeting tools available
Details...
Go to Site

£10.00 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • Earn cashback as U points
  • £10 monthly fee
  • Mobile app and budgeting tools available
Details...
Go to Site

None
  1. Direct DebitNo
  2. Standing OrdersNo
Cash / Debit
  • Credit interest payable
  • No arranged overdraft available
  • Access to Fidor Smart Community
Details...

£4.25 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Cash / Prepaid
  • Earn up to 20% cashback on purchases at participating retailers
  • No arranged overdraft available
  • Can be operated via mobile app
Details...

£0.99 pm
  1. Direct DebitNo
  2. Standing OrdersNo
Cash / Debit
  • Eligible for cashback offers with selected retailers.
  • No arranged overdraft available
  • Standard account fee payable
Details...

£4.95 on app then £4.95 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Prepaid
  • Cab be operated via mobile app
  • Monthly account fee payable
  • £15 redemption fee on current account closure
Details...

£17.50 pm. £24.50 pm
  1. Direct DebitYes
  2. Standing OrdersYes
Debit / Prepaid
  • Cancellation or redemption fee not charged
  • Monthly account fee payable
  • No unpaid charges
Details...

Moneyfacts.co.uk Limited is an independent credit broker not a lender. We will receive a payment from credit providers where customers link to them from Moneyfacts.co.uk. None of these arrangements affects our independence.

Disclaimer:

All overdrafts are subject to the applicant’s status. You may not be offered credit. All rates and fees are subject to change without notice. Please check all rates and terms before borrowing.

Moneyfacts.co.uk Limited is an independent credit broker not a lender. We will receive a payment from credit providers where customers link to them from Moneyfacts.co.uk. None of these arrangements affects our independence.

 

What are guaranteed bank accounts?

The defining feature of a guaranteed bank account is that it does not require a credit check to open. They may therefore be ideal for people with a poor credit rating, or those who haven't been in the UK long enough to develop a credit history.

One of the reasons these accounts are able to forgo a credit check is because they generally do not have any overdraft facilities. While some may allow an arranged overdraft (so you will be able to go slightly into the red if you warn your bank first), they will not offer an unarranged overdraft, making it much harder, if not impossible, for you to accumulate unaffordable debt with this kind of account.

Other common restrictions on these accounts include the lack of a cheque book and the fact that they may be based solely online. While most will come with a debit card of some sort, there might be more restrictions on withdrawals (and remember that you will almost always be charged for using your card abroad). It's important to consider your options carefully, especially as some guaranteed bank accounts may not even allow direct debits and standing orders.

Because they are designed for people who don't have much of a choice in what kind of bank account they can get, they may not be as enticing as other bank accounts. Although some of the best guaranteed bank accounts may offer cashback and other benefits, most will likely charge monthly fees, which means it could be quite pricey to have a no credit check bank account.

To open a bank account with no credit check, you will still need to fill in some personal details and prove that you live at a valid UK address. You will also likely have to be at least 18 years old.

Some of these products may also be used as a business bank account. Remember, though, that you will have little or no overdraft. It may therefore be better to improve your credit rating and then apply for a business current account that comes with fewer fees and more benefits.

Can these accounts help repair bad credit?

Unfortunately, this is not necessarily the case. While thanks to the lack of a credit check they certainly help you avoid getting a worse credit score, only some accounts offer credit builder tools or a dedicated account manager to help you get (back) on track.

If you want to improve your credit rating, look carefully to see which account might be your best bet. Aside from those that specifically mention credit-building help, you could opt for a guaranteed bank account with overdraft, if one is available, as going into an arranged overdraft and then paying into the account again quickly to get out of the red could positively affect your credit score. Note that going into your overdraft may come with an interest penalty, so this might not be the cheapest way to get your score up.

To improve your credit rating quickly, you are going to need to do more than just one thing. Have a look at our guide to see what else you could do to repair a bad credit rating.

Who might benefit from them?

If you have no credit history or you've had debt troubles that resulted in a bad credit rating, a guaranteed bank account might be your best bet. A no credit check bank account is especially suitable if you can't afford to let your credit score drop even a little bit

If you do still have some leeway, you could alternatively consider a basic bank account. These accounts do require a credit check, but also have no overdraft facility. Compared with guaranteed bank accounts, they are also less likely to charge a monthly fee and more likely to offer added benefits.

If you're looking to keep costs down, another alternative is a free bank account. Again, these do require a credit check, but they will usually have overdrafts you can use and, as the name suggests, do not charge any basic account fees (there will probably be interest charges and foreign usage fees). Unlike both guaranteed and basic bank accounts, they may even offer an interest rate on the money you have in the account, giving you a little extra for banking with them. A free bank account may not be suitable if your credit rating is particularly poor.

So, if your personal circumstances require it, you might benefit from having a guaranteed bank account because it will allow you to get your wages paid in and do everything else that a current account is useful for, without negatively impacting your poor credit rating. If you're just looking for an account that will help you manage your money and does not allow you to go into the red, a basic bank account or prepaid card could be more suitable.

New overdraft rules make it easier to avoid debt
New overdraft rules make it easier to avoid debt

If your bank account dwindles to almost zero every month before payday, you’ll be happy to hear it’s... More

93% current account switching satisfaction
93% current account switching satisfaction

Today, the Current Account Switch Service published findings that show a 93% satisfaction rate among... More

New year, new bank account?
New year, new bank account?

January may be the perfect time to make financial changes. To maximise what you get from everyday ba... More

The Open Banking revolution is coming
The Open Banking revolution is coming

This weekend, the Open Banking ‘revolution’ will kick off across the UK, with the biggest banks all ... More

RBS and NatWest to close 259 branches
RBS and NatWest to close 259 branches

RBS has announced that it’s closing a total of 259 branches across its network, following a review o... More

What is a continuous payment authority?
What is a continuous payment authority?

Don’t confuse a continuous payment authority with a direct debit or standing order. If you do, it ca... More

Current account jargon buster
Current account jargon buster

Trying to find a current account but baffled by the jargon? Use our jargon buster to find about basi... More

7 steps to getting (and staying) overdraft-free
7 steps to getting (and staying) overdraft-free

Get yourself overdraft free by following our practical, seven step guide. You can actually turn a ba... More

Current account for 11-17 yr-olds gets 5 stars
Current account for 11-17 yr-olds gets 5 stars

Nationwide has unveiled a new current account designed for the younger banker that has scored full m... More

Yorkshire launches bank account paying 4% interest
Yorkshire launches bank account paying 4% interest

Yorkshire and Clydesdale banks have launched a market-leading high-interest bank account.... More

Close