Credit Building > Can you get a bank account without a credit record?

Can you get a bank account without a credit record?

Wollit Team3 minute read · Updated 2nd August 2024

In the UK, having a poor or no credit record can make opening a standard bank account difficult. However, there is a solution—basic bank accounts.

These accounts are meant to provide basic banking services (hence the name) without requiring a credit check.

This means you can get one even if you have poor credit or no credit history (for example, if you’re new to the UK).

What is a basic bank account?

A basic bank account is much like a regular bank: you can use it to receive payments, store money, pay bills, and manage finances.

The main difference between a basic bank account and a current bank account is that a basic one doesn’t come with:

overdrafts;
cashback;
or access to credit cards or loans.

A basic bank account can be used for pretty much anything, including accessing online and mobile banking.

Basic bank accounts are especially good for people new to the UK and without a credit history.

They’re also good for people with poor credit scores or who’ve experienced “adverse events” like individual voluntary agreements (IVAs), debt management plans (DMPs), debt relief orders (DROs), or bankruptcies.

Do I need a credit check to open a basic bank account?

No. You normally do not need to pass a credit check to open a basic bank account.

Most high street banks and some building societies offer basic accounts, and you can usually apply for one in-branch or online.

Which banks offer basic bank accounts?

Most banks offer basic bank accounts, even if they may not always advertise them prominently.

Some banks may require you to apply for a standard current account first and only give you a basic account if you do not qualify for the standard one.

Others let you apply directly to the basic bank account without needing a separate current account application.

Some banks offering basic bank accounts are Santander, Virgin Money, Co-op, Barclays, and HSBC.

You’ll most need to visit a bank branch in person to open an account. If you want to do it all online, you can also try Monzo, a digital bank.

How much does a basic bank account cost?

Most banks offer basic bank accounts without any monthly or debit card fees.

However, there might be other costs—for example, basic bank accounts usually have higher foreign exchange or ATM withdrawal fees.

What do I need to open a basic bank account?

To open a basic bank account, you usually need to provide:

A valid passport or national ID card with a photo;
Proof of your UK address, such as a utility bill, rental agreement, or council tax bill dated within the last three months;
And an initial deposit. You can deposit cash or transfer money from another account. Don’t worry – this money is still yours, and you can use it from the new basic bank account.

Here are a few things to keep in mind:

If you don’t have a UK address yet, you may be able to use a friend’s or relative’s address. Ask the bank;
Banks may also ask for your occupation and what you expect to use the bank account for.

Once you submit your documents, banks might run a “soft credit check” to confirm your identity, but this does not affect your credit score.

However, while the application is fairly simple, you can still be refused if you:

Fail an identity or immigration check;
If the bank suspects fraud or money laundering.
Or if your visa does not allow it (for example, you’re on a tourist visa).

Why should I get a basic bank account?

Getting a bank account in the UK is important because it can give you access to full banking services even if you have poor or no credit history.

This differs from a prepaid or e-money account like Monese, Revolut, Wise, or PayPal, which only offer basic money transfer or card payment services.

While opening prepaid and e-money accounts is usually very easy and free, they are not FCSC protected, meaning that if Monese, Revolut, Wise, or PayPal go under, your money is not insured.

Now, this shouldn't be an issue – Wise, for example, is listed on the public London stock exchange and has been profitable for many years.

However, the biggest advantage is that basic bank accounts appear on your credit file, which is one of the first steps towards building a credit history in the UK.

The next one is getting a credit agreement. You can do this with several tools, one of which is Wollit.

Wollit reports a fixed fee monthly subscription as a loan repayment to credit reference agencies (Experian, Equifax, and TransUnion). This helps you build or rebuild your credit history by showing you can pay debt on time. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you’re responsible and pay your bills when they’re due.

In time, this will help you improve your credit score, allowing you to open any account you want and access the full range of financial services în the UK, from credit cards to mortgages.