Opening A New Bank Account If Your Credit Rating Is Poor

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Even those with a poor credit rating can open a new bank account. You just need to understand the right questions to ask.

If you are struggling with personal debt, one of the first steps to getting back in control is often to open a new bank account.

Opening a new account is important because you need to make sure that any money paid into your account is fully under your control.

If you continue to use a bank account which is operated by one of your creditors they may take money from your account without your authority. They are allowed to do this under the right of offset.

Ask for a basic account

When you apply for a new current account, the first thing the bank will do is carry out a credit check on you.

If you have debt problems and have missed payments, your credit rating is likely to be poor. If this is the case, you will fail the bank's credit check, and your application will be refused.

If you believe that your credit rating is poor, you should be up front about this.

When you speak to a bank, tell them that you may not pass their standard credit check and so you require a simple bank account with no credit facilities.

This type of account is often known as a basic account or a card cash account. Many high street banks offer a basic bank account facility which they will open for you without needing to pass a standard credit check.

No credit facilities

A basic bank account will allow you to set up standing orders and direct debits. However, the downside is that you will not be offered credit facilities such as an overdraft.

Another problem with many basic accounts is that you will not be given a debit card.

Some basic bank accounts such as the Co-Op cash minder do offer a debit card facility. However if the bank you have chosen does not, you can consider getting a pre-paid debit card.

About the Author:
Steve Jackson is a debt adviser from BeatMyDebt.com in the UK. For more quality and unbiased information on Personal Debt Solutions, visit our website at www.beatmydebt.com



Article Originally Published On: http://www.articlesnatch.com


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