Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
It’s quick and easy to open an account with Revolut and you won’t need to undergo a full credit check as there’s no overdraft facility. Instead, if a purchase exceeds the amount in your account, it should be declined. Or if your balance falls below zero, you will be notified and given up to 7 business days to add money. You’ll have 5 pricing plans to choose from, one of which has no monthly fee. With this account, you can easily send money abroad, as well as withdraw up to £200 per month without charge. Paid-for accounts offer more features, but may be less suitable while you’re getting your finances back on track.
Pros
Low overseas fees
Quick sign-up
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked 'Junior' account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
You can open a bank account with Monzo without requiring a full credit check, making it a good option for those with bad credit. There are 4 different Monzo pricing structures to choose from, so you can pick the one that best suits you. To sign up for an account, you will need to download the app, provide your personal details and verify your identity by taking a video of yourself and a picture of your ID, but no proof of address will be required. The account allows users to set spending budgets by category, establish savings pots, divvy up their salary into spending, savings and bills, and benefit from fee-free transactions abroad.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Pros
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Cons
Free ATM withdrawals outside the EEA limited to £200,
£1 fee for depositing cash at PayPoints,
Maximum cash deposit of £1,000 every 6 months
No rewards program
Minimum opening balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
0%
Overseas cash withdrawals
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
Only a soft credit check is carried out when you apply for the Starling account, as long as you’re not applying for an overdraft. All you’ll need to provide are some personal details, a photo of your ID and a selfie video. You can manage the account via the app and there’s no monthly fee to pay. You’ll be able to transfer money with ease, set up different savings spaces to save for different goals, track spending and spend on your card overseas for free. What’s more, you can set money aside from your regular bills, split bills with friends and earn interest on your balance.
Pros
Free ATM withdrawals and spending anywhere abroad
Can deposit both cash and cheques for free
Spending insights and saving tools
'Settle up' feature to split joint bills
Pays interest on current account balance
Overdrafts and loans available
Cons
Lower ATM withdrawal limit than some other digital challengers
Earn cashback of up to 3.5% at more than 35 major high street retailers when using CardOneMoney card.
No credit check is carried out for the Card One Money account and you won't be charged a fee for any bounced payments, making it ideal if your credit score isn't up to scratch. You just need to have your identity and residency verified. The account comes with a prepaid debit card which you can use instore or online free of charge. However, a fee applies to ATM cash withdrawals and the account also has a monthly fee. You can have your wages or benefits paid directly into the account and then set aside what's needed to cover your bills and other outgoings.
This is another account that doesn’t involve a credit check when you open the account. All you’ll need is to be at least 18 years old and have a UK address. There are 3 pricing structures to choose from, including a pay as you go account. This has no monthly fee but transaction charges apply - or you can upgrade to a paid-for plan which can be more suitable for everyday banking. You can also benefit from cashback on spending and retailer discounts. Suits Me doesn’t offer any overdraft facilities, but your account comes with a free contactless prepaid debit card and you can manage your account via the app.
Pros
Accepts range of ID documents, ideal if you’ve recently moved to the UK
Opening a bank account that doesn’t require a credit check
If you have an IVA and want to open a bank account, one option is to look for an account that doesn’t require a credit check. Fortunately, thanks to the rise of digital-only banks, these accounts are becoming increasingly common.
For example, you could look at accounts with Card One Money, Suits Me or thinkmoney. Just be aware that they often come with monthly or other fees attached.
Challenger banks such as Starling and Monzo also offer accounts with no hard credit check, as long as you’re not applying for an overdraft, and these don’t always charge monthly fees.
These accounts are typically quick and easy to open via the provider’s app, and your account can often be up and running the same day. Just keep in mind that this also means you won’t have a bank branch to pop into and not all accounts let you deposit cash.
But on the plus side, some accounts come with added perks such as fee-free spending abroad or interest on your balance. So be sure to compare them carefully, looking at fees, rewards, access, and eligibility requirements.
Opening a basic bank account from a high street bank
Another option is to open a basic bank account with a high street bank. Some banks will carry out a credit check as part of the application process, but this is mainly to verify your identity.
Basic bank accounts are tailored towards those with poor credit, so you have a better chance of getting accepted. What’s more, you’ll be able to pop into your local bank branch if you don’t want to always bank online.
However, as their name suggests, these bank accounts are basic day-to-day accounts. This means there will be no perks or benefits with your account and you won’t have an overdraft either.
How an IVA can impact getting a bank account
Having an IVA indicates you’ve had problems managing your money in the past. This can make providers more reluctant to let you open a bank account – and you’re certainly not likely to get an overdraft. As a result, you’ll have less flexibility when it comes to the type of bank account you can open.
But the good news is there are still plenty of options to explore with both high street banks and digital-only providers.
Alternative options
As well as the accounts we’ve mentioned above, you could consider applying for a prepaid card. No credit checks are carried out, so you don’t need to worry about having poor credit.
Prepaid cards let you load cash onto your card in advance, and you can then only spend what’s on it, making these cards ideal for budgeting purposes. Some cards also have built-in credit building features, whereby the provider effectively lends you a year’s worth of monthly fees. You then repay this over 12 months and by making your payments on time and in full, your credit score starts to go up.
How to manage your existing bank account
If you have an IVA, you’ll probably be advised to open a new bank account if you have a debt, such as an overdraft or a credit card, with your existing bank account provider that’s included in your IVA. If you don’t do this, your bank could freeze your account or take funds from it to pay off your debts.
This also applies if you have debts with any providers in the same banking group – for example, if you have a debt with HSBC and a bank account with First Direct.
If your existing bank account isn’t linked to any of your creditors, you don’t have to switch bank accounts. But it’s best to stay out of your overdraft if you have one, and make sure you pay any bills on time. If your account has any budgeting features, be sure to make use of them to help you stay on track and meet the terms of your IVA.
Bottom line
If you have an IVA and need to open a new bank account, you won’t have as much choice as someone with good credit. However, it’s worth comparing accounts with both challenger banks and high street banks to see what works best for you. Remember to consider factors such as fees, rewards, how to manage the account and eligibility requirements before applying.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
Learn how current accounts with cashback work, whether they’re right for you and how to find the best current account.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
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