People often confuse basic bank accounts with bad credit bank accounts. While both of these types of current account target the same market, those with bad credit, there are some large differences between the two accounts.
What is a basic bank account?
A basic bank account is exactly what it says on the tin. It is just a bank account with the most basic of facilities and they can be rather restrictive. This type of account is usually offered to persons aged 16 – 18 who have no credit history or someone who has a record of bad credit. With the basic bank account you won’t get an overdraft, cheque book or debit card. Some banks won’t even allow basic bank account customers to pay money in over the counter, instead they make them use the “fast pay” option whereby they place their cash in an envelope with a paying-in slip in the secure box in the branch.
Now, personally, that says to me that the bank thinks of the customer as a lower class and doesn’t want them holding up the queues of customers who have regular current accounts. That is kind of degrading really and creates a two class system of customers in the bank.
So with a basic bank account you can expect to have the bare minimum of banking facilities and thought of as a second class customer by your bank. Who would want to be a customer of a bank like that? The problem is that many people think that is the only option they have if their credit rating is poor.
Well, actually, there is another option open to people in the UK who have a bad credit rating and who don’t want to be treated like a second class customer.
OK, so what is a bad credit bank account?
Bad credit bank accounts are designed specifically for people who have bad credit without treating them like second class customers. The accounts also offer better banking facilities including a debit card as standard which is something that no other bank will offer with a basic bank account. It baffles me why people put up with being treated so badly by their banks when there are much better options available.
A bank account for bad credit?
It is exactly what it says it is: if you have bad credit and need a bank account that doesn’t restrict you like a basic bank account does, then this is a bank account for you. First of all, let’s be very clear on something, there are NO credit checks with these bank accounts. The reason for this is that it doesn’t matter how bad your credit rating is, you will still be accepted for an account – that’s why there are no credit checks.
One of the 
main differences between a basic bank account and a bank account that is specifically for people with bad credit is that the one for bad credit comes with a debit card as standard. While a basic bank account offers a simple cash card which will only let you take money out of the cash machine a debit card allows you to pay for goods in shops using the chip n pin machine. You can also use the debit card online and over the phone. In fact, a debit card makes life a lot more convenient and every bank account should have one.
But bad credit bank accounts go further than just a debit card because they allow you to manage your account using online banking, phone banking and even text (sms) banking. This means you can access and manage your account when it is convenient to you rather than just when the bank is open.
But what about paying money in to your account?
Well, that’s just as easy as having a regular bank account. You can pay money in over the counter at the banks High Street branches, this includes cash and cheques. You can also have your wages or social security benefits paid in directly too. Direct debit and standing orders also allow you to set up regular payments for things like your gas/electricity bills, phone bill, SKY bill etc.
The simple fact is that a bank account for bad credit is just like a regular current account apart from it won’t come with a cheque book (who uses those now anyway) and it won’t be able to offer you an overdraft. But when you consider what your local High Street bank provides you with, and how it treats you, when you have a bad credit rating then a bank account for bad credit stands head a shoulders above a basic bank account from your local High Street bank.
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