Is it an almost impossible challenge to open a bank account with bad credit? Not any longer
You went to a bank's branch to open a bank account with bad credit, but to your dismay, they refused to provide you with this service?
Main street, traditional banks, tend to be very risk averse. To such a degree that it seems to us that they'd rather shun perfectly decent clients than risk having their reputation stained by being associated with potentially shady clients.
They snub some potential clients and businesses even before they've had a chance to submit a formal application. In the same vein, opening a bank account with bad credit can be very troublesome through a branch of a traditional bank.
Do you need a bank account fast? As specialist brokers, with contacts to various financial institutions, we can help!
· Multi-Currency Business and Personal accounts in the EU & UK
· For residents or non-residents of the EU & UK
· No need to visit a physical branch
· 100% online banking
Bank account with bad credit thanks to Fast Bank Accounts.... how so?
We work with you, or your business, in a simple 6-step process to get you an online (multi-currency) bank account fast.
Whatever your industry: crypto, gaming, adult, import/export,... we guarantee to get you a business multi-currency account fast. This includes a debit or credit card and easy online banking services in multiple currencies.
And best of all: no need to pay anything before your account is approved and opened, we only charge once we deliver your account!
Why is it that the number of people and businesses excluded and ostracized by banks has increased so much in recent years?
People and businesses that need to open a bank account with bad credit are under the impression that this is the case indeed. Actually, they're quite right.
Over the last years, financial institutions have been seen exiting relationships with and closing the accounts of clients perceived to be “high risk.” This phenomenon is called de-risking.
This has coincided with increased attention to anti-money laundering and countering the financing of terrorism (AML/CFT) frameworks as crucial tools for advancing stability and security objectives and for curbing criminal and violent extremist activity.
In recent years there has been a trend toward de-risking of entire sectors. Those closures have had a ripple effect on financial access for the individuals and populations served by those businesses.
This de-risking practice is not in line with international guidelines. In fact it’s a misapplication of the risk-based approach. Yet in the absence of clear instructions or an incentive to bank these clients, account closures continue across the United States, the United Kingdom, and Australia. These closures have significant implications, effectively cutting off access to finances.
So, if you need to open a bank account with bad credit, you might experience that this has become more problematic than ever before.
Some more valuable tips on how to open a bank account with bad credit.
Any person, legal business or sector is welcome and can apply for a bank account through our services. This includes crypto, gaming, adult and other businesses that sometimes face difficulties opening bank accounts due to bad credit.
Therefore in order to obtain a bank account with bad credit, you needn't do more than gather the right documents (such as proof that you are who you say to be etc...), fill in our simple form and upload these documents. We'll get you a bank account within 24 hours – or you don't pay us anything.
In order to be of more assistance to you, even before you reach out to us for a bank account with bad credit, or in a so called high risk industry, let us share a number of more general useful tips that we've gathered here for you.
Bank account with bad credit: starting a business after a bankruptcy
Obviously, starting a business is always challenging, but getting back into business after having gone through bankruptcy can be even more difficult. Going through bankruptcy is undoubtedly very stressful, but it doesn't need to put an end of to your entrepreneurial spirit.
After a bankruptcy, your credit score may have taken a big hit. But many entrepreneurs go through bankruptcy and subsequently build great companies.
Let's just consider two famous businesspeople - there are many more - who recovered from bankruptcy to become very successful. They must have experienced the need to open a bank account with bad credit at a certain point. Just as you might do right now.
Henry Ford
As a mechanic and engineer, Ford launched the Detroit Automobile Company in 1899.
However, his perfectionist attempts to hone his craft plus constant fiddling proved too much for the fledgling business, and the company was bankrupted in 1901 – after Ford had produced just 20 cars.
The company was restructured as the Henry Ford Company and went on to great success, eventually changing its name to the Cadillac Automobile Company. All the same, Ford had left by then, and he went on to set up the Ford Motor Company in 1903.
Then in 1908 Ford proceeded to launch the Model T Ford, widely regarded as the world’s first affordable car.
Can you just imagine what must have gone through his mind when he needed to open a bank account with bad credit?
Walt Disney
Despite early popularity, the studio’s rapid early employment of animators was too much for the business to sustain. Eventually, immense debt forced the company into bankruptcy and left Disney penniless.
Joining forces with his brother, Disney left for Hollywood, hoping that the industrial heartland of movies would provide a better backdrop for his ambitions. Together, the pair formed the Disney Brothers Cartoon Studio in 1923. And today, revenue-wise the Disney company is the biggest media conglomerate in America.
Just for a moment, try to picture what must have gone through the mind of some conservative banker when Walt Disney applied for a bank account with bad credit. Would I dare to guess it was on the lines of, "What kind of Mickey Mouse business is that?"
Let's look at five steps you can take to recover from bankruptcy and emerge stronger than ever.
Write up a realistic financial plan
Whether you're rebuilding an existing business or starting a new one after bankruptcy, you'll need a comprehensive financial plan. First take stock of your position - what are your current assets and liabilities? Do you have outstanding debts, and if so, how much?
Rebuild your credit score
You can't remove bankruptcy from your credit report, but you can take steps to restore your credit score at the same time. One of the easiest ways to improve your credit score is to pay your bills on time, as your payment history is one of the most important factors affecting your overall credit score.
Reduce your operating costs
When restarting a business, it's best to keep expenses as low as possible. Look at your fixed and variable costs overhead to see what you can reduce or eliminate entirely.
That could mean you have to cut your salary and cut your cost of living, or you may have to downsize your operations and shrink your headcount.
Cutting certain expenses is always difficult because it limits some of your growth potential, but it's only a temporary setback until your business is profitable again.
Rebuild your credit score
You can't remove bankruptcy from your credit report, but you can take steps to restore your credit score at the same time. One of the easiest ways to improve your credit score is to pay your bills on time, as your payment history is one of the most important factors affecting your overall credit score.
Don't stay stuck in the past
Don’t let the fact that you went through bankruptcy once discourage you or prevent you from fully engaging in your business. Bankruptcy is a time for you to take stock of where you’re at and fix your financial challenges of the past. With the right experience and attitude, you will be able to build an even stronger business than before.
But in order to get started you’ll find yourself in need of a bank account with bad credit.
Opening a bank account with bad credit should be simple!
For many, opening a checking or savings account at a local bank branch is just another thing. You go in, sign some papers, deposit some cash, and move on.
But for some people, opening a bank account with bad credit can be a nerve-racking experience. The wait and uncertainty at mains street, traditional banks, can have serious implications for their lives.
Actually, can bad credit stop a person or business from opening a bank account? Not really. It doesn't really stop them from opening a bank account any more than it stops them from getting a loan or a credit card.
However, the types of behaviours that lead to bad credit, overdue bills, missed or late payments, and piling up more debt than you can handle are also the types of behaviours that prevent you from opening a bank account with bad credit.
Bank account with bad credit. How does someone end up in this particular situation?
A poor credit score can be the result of bad credit history or of not having a credit history at all.
If you’ve never had credit of any kind, lenders don’t know if you’re the kind of person who keeps up with their payments, so you’ll be considered a “high-risk” customer.
Bad credit history, instead, can result from various different financial difficulties, such as:
Late or missed payments. If you have a credit card, for example, you should always try to pay off your monthly bill in full, and if you can’t, make at least the minimum repayment. You can set up a direct debit and choose to clear your balance in full, pay a fixed sum, or make the minimum required payment each billing cycle.
Going over your credit limit. Spending more than your credit card allows you will result in a fee and may influence your credit score as well.
County Court Judgements (CCJs). If you get one, it means that a lender went to court because you weren’t paying off your debt and the court has officially ruled that you owe the money. You should try and pay within a month if you can: if you don’t, a record of the judgement will be kept for six years and will impact your credit score.
Bankruptcy. Just like a CCJ, a bankruptcy will stay on your credit report for at least six years.
Bank account with bad credit: who and what?
Even today, thousands of people in the UK don't have a bank account. According to the Financial Conduct Authority (FCA), most UK consumers (96%) have a current account from a bank or building society. But there is still a significant number of adults who do not have a bank account, or account or are what is known as ‘unbanked’.
That's more than 2 million adults who don't have a bank account.... in the UK alone.
Being unbanked is not uncommon in developing countries. According to data by Merchant Machine, 2021, in a number of countries more than half of the adult population is unbanked.
In addition to the logistical challenges facing the unbanked, there is a price premium. The best tariffs for ancillary fees, cell phones and insurance are usually reserved for those who sign a contract and pay by direct debit.
According to a report, the unbanked - usually those on the lowest incomes - end up paying up to £485 a year in extra premiums for things like electricity, gas and credit because they don't have a bank account.
Often overlooked, a bank account is also a gateway to other financial products and services.
Usually, most people get their first bank account when they are teenagers. After that, they may get an agreed-upon overdraft or student credit card while they go to college.
If they become regular customers of a particular supplier over time, they have a better chance of getting a better deal when they get to a stage where they make a bigger financial commitment, such as a loan to buy a car or a mortgage.
Being unbanked also has an important impact on your credit score. When people pay their bills with cash on a pay-as-you-go basis, these regular payments aren't registered with credit reference agencies. That makes it very difficult to build up a credit history.
As poor credit history is one of the reasons many people are unbanked in the first place, this creates a dangerous cycle. You cannot open a bank account with bad credit, but you cannot escape that 'bad credit' trap without a bank account.
Fast Bank Accounts Useful tips to open a bank account with bad credit
Actually, the very best tip we can offer you on how to open a bank account with bad credit is to just apply for it through us. Why? Read on.
Bank account with bad credit: no account, no fee
If we can't find a bank that is willing to open an account for you, we won't charge you anything for our services.
Bank account with bad credit: fast & easy
Your account will be open within days, not months. There's no need to fill out multiple forms or go through lengthy back-and-forth procedures with multiple banks. We submit all of the documents on your behalf.
Bank account with bad credit: 100% online
Everything is done online. There is no need to visit any physical bank office or branch. Once your account is opened you will receive login details for online banking and accompanying credit/ debit cards.
