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bobbit
New Member

3 Posts

Posted - 17 Nov 2010 :  14:00:52  Show Profile  Reply with Quote
I'm thinking about starting a debt management plan and have been told to open a new bank account. Can anyone make any suggestions as I'm worried about getting knocked back due to my bad credit history. Thanks

Beverley Budsworth
Debt Management Expert



251 Posts

Posted - 17 Nov 2010 :  14:24:52  Show Profile  Reply with Quote
Hi Bobbit,

It would only be necessary to change banks for your current account if you have other debts with the same bank, such as loan or credit card. This is because your bank can take funds from your bank account to pay towards other accounts if they fall behind.

If you do need to change bank, the main thing is choosing a bank that is local and convenient to you. You will also need to make sure that it is a bank that you do not have any credit with also. Do not be worried about your credit rating, as all banks offer basic banking accounts for people in your situation, which will not offer overdraft facilities and will issue a basic cash card.

I am a Insolvency Practitioner and Managing Director of The Debt Advisor. To contact me about Debt Management Plans, IVA's or general debt advice please click here:
   

Edited by - Beverley Budsworth on 17 Nov 2010 15:31:43
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James Falla
Debt Management Expert



277 Posts

Posted - 17 Nov 2010 :  18:47:10  Show Profile  Reply with Quote
Hello Bobbit

As Beverley has said, you only need to change your bank account if you have other debts with the same bank. Given this is the case, the bank and type of account you choose will really depend on your credit rating.

If you believe your credit rating remains good (ie you have not yet missed any monthly payments), then you should be able to open a new current account with any bank as long as it is not one you owe money to.

If you feel you credit rating is poor because you have already started missing payments, you will have to go for a simple bank account called a card cash account. Quite a few banks do these, but the Co-Op or Barclays are always a good choice as they will give you a debit card with you account as well.

Personal Debt Expert
BeatMyDebt.com
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bobbit
New Member

3 Posts

Posted - 18 Nov 2010 :  11:35:47  Show Profile  Reply with Quote
My credit history is pretty bad so do you think I could get one of those accounts with a debit card?
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Debt Management Advisor
Debt Management Expert



366 Posts

Posted - 18 Nov 2010 :  13:37:51  Show Profile  Reply with Quote
Hi bobbit,

I know less about the Barclays account that James mentioned, but many of the DMP clients that I have worked with have gone ahead and obtained the Co-op Cashminder account. So long as Co-op (and Smile) are not amongst your creditors this should be a good option.

The acceptance criteria for this bank account includes persons currently in bankrupty, so your credit record should not prevent you from getting this account.

I am a CertDR qualified Debt Advisor. I advise on all of the available UK debt solutions. For advice on all of your options please click here:
   
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bobbit
New Member

3 Posts

Posted - 18 Nov 2010 :  17:47:24  Show Profile  Reply with Quote
Not sure there is a Co-op branch near here but I will double check. Thanks for the help.
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Debt Management Advisor
Debt Management Expert



366 Posts

Posted - 19 Nov 2010 :  10:56:48  Show Profile  Reply with Quote
Hi bobbit,

It need not be a problem if there isn't a local branch.

You can apply for the account online or by phone.

You can then use your local post office to pay in cheques and other similar tasks that you might otherwise need a bank branch for.

I am a CertDR qualified Debt Advisor. I advise on all of the available UK debt solutions. For advice on all of your options please click here:
   
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James Falla
Debt Management Expert



277 Posts

Posted - 22 Nov 2010 :  16:16:25  Show Profile  Reply with Quote
Hi Bobbit

If barclays are not one of your creditors, they can certainly help you out with a new bank account if your credit rating is poor. This might be a better option for you if you like to be able to go into a branch.

However, as Debt management Advisors has said, you can open a Co-Op cash minder over the telephone. They are normally pretty good and can have your account open for you in a couple of days.

Let us know how you get on.

Personal Debt Expert
BeatMyDebt.com
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Phil Corfield
Debt Management Expert



897 Posts

Posted - 23 Nov 2010 :  17:03:22  Show Profile  Reply with Quote
Hello bobbit

Accounts to consider:

Halifax/HBOS - Easy cash
Barclays - Cash Card Account
Clydesdale - Ready Cash
Co-op - Cashminder
Lloyds - Cash Account
NatWest - Step Account
RBS - Key Account
Yorkshire Bank - Readycash

All of the above offer debit cards and you can have direct debits and standing orders on the account too. This effectively gives you a normal bank account, except there is no overdraft limit.

As the others have previously mentioned, make sure the bank you choose is not linked to any of your creditors.

I am a CertDR qualified Debt Advisor and a Director of Bright Oak.
To contact me about a debt management plan or general debt advice please here:
   

Edited by - Phil Corfield on 23 Nov 2010 17:03:58
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James Falla
Debt Management Expert



277 Posts

Posted - 24 Nov 2010 :  16:38:51  Show Profile  Reply with Quote
That is a very useful list Phil. It looks like more and more banks are offering debit cards on their no credit card cash accounts. Do you think this is as a result of the competition from pre paid debit card companies?

Personal Debt Expert
BeatMyDebt.com
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Phil Corfield
Debt Management Expert



897 Posts

Posted - 25 Nov 2010 :  13:34:14  Show Profile  Reply with Quote
It is possible that is the reason James yes. I do think though that the banks have realised that given the situation of the country, and their own situations, that people with poor credit records will still need the flexibility of debit cards on these accounts as we have become a more cashless society.

I am a CertDR qualified Debt Advisor and a Director of Bright Oak.
To contact me about a debt management plan or general debt advice please here:
   
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James Falla
Debt Management Expert



277 Posts

Posted - 26 Nov 2010 :  15:30:42  Show Profile  Reply with Quote
I do admire your positive view about the charitable nature of the banks Phil :) I am sure there are certain costs involved with running debt cards which the banks would rather not shoulder. However, perhaps better that than loosing a client to a pre-pay company.....

Personal Debt Expert
BeatMyDebt.com
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