Having a bad credit score makes life difficult in lots of ways and it can mean it’s harder to open a business bank account. However, there are an increasing number of free business bank account options out there if you do have a bad credit history. Show
Tide is the new hassle-free way to control your finances, helping you save time and money. Accounting made easy. Safe and secure. Instant invoicing. No monthly fees. Powerful and simple. Can I open a bank account if I have a bad credit score?The simple answer is: yes, you can. Having a bad credit score may limit your options as some banks will conduct a credit check as part of their application process. Depending on the bank’s eligibility criteria, this may mean you’re not able to open an account. Typically, high street banks are stricter with regards to who can open an account. However, many of the digital-only accounts such as Tide and Starling do not take your credit score into account. Equally, some of the high street banks will offer basic account options for those with bad credit – or, if you’re looking for a no-frills free business bank account. Top mobile business bank accounts with no credit checksIn the last decade we’ve seen the emergence of the mobile business bank account. The new brands offering these accounts are sometimes referred to as challenger banks. The likes of Starling Bank, Tide Business, ANNA Money and Monzo are some of the most notable. The key difference to the traditional banks is that they do not have a high street presence. Instead, their banking services are wholly digital meaning you can conduct all your financial affairs using an app or online banking. Most importantly for those with a bad credit score, you won’t be subject to a ‘hard’ credit check in order to open an account. This is mainly due to these accounts not offering credit facilities like traditional banks. Let’s have a look at the eligibility criteria: Bank Main features Credit check? Tide Business
Get 50 on us when you use the code INFORMI. No. Tide will perform an electronic check which will appear on your credit report. ANNA Money
No. ANNA Money will conduct an identity check to prove who you are. This won’t affect your credit score. Starling Bank
Starling performs a ‘soft credit check’. This will appear on your credit file but won’t affect your credit score. Monzo Business
Monzo performs a ‘soft’ credit check. This will not affect your credit score.
Book now What about the traditional bank accounts if I have a poor credit score?If you have a poor credit history, whether you have defaults on your credit file or have been made bankrupt, it’s going to make applying for a business bank account difficult – particularly with the traditional high street banks. However, a small number of these banks provide basic bank accounts if you’re not eligible for their main business account. This will at least allow you to have an account through which you can deposit/withdraw funds and move money. The list below will help determine the best business bank account for you.
End of Article Share this contentBrought to you by:AAT Business Finance BasicsAAT Business Finance Basics are a series of online e-learning courses covering the core financial skills every business needs. They draw from AAT’s world-leading qualifications and will quickly build your knowledge on key topics including bookkeeping, budgeting and cash flow. What to do if you can't get a business account?What to do if you're rejected from opening a business checking account. Step 1: Find out why you were denied. Banks are required by law to tell you why you were denied a bank account. ... . Step 2: Improve your credit score or banking history. ... . Step 3: Try to get a cosigner. ... . Step 4: Consider alternative banking options.. Can I open a business account with bad credit UK?Even if your business or personal credit score is lower than you'd like it to be, there are still business current account options available. These 8 business current account providers don't run a credit check before approving you. Their applications are online, fast, and straightforward.
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