Poor/Adverse Credit? Basic Bank Accounts Can Help
| Published on 21 January 2005 - 4:40pm. | Adverse Credit | Banking | Barclays Bank | Co-operative Bank | Debt | Nationwide | NatWest |
If you have poor credit or are bankrupt then you will struggle to get access to mainstream banking services. Most major banks offer basic banking facilities that will allow you to have your salary paid in, operate direct debits, access your cash through a machine and some will provide a debit card.
We've spotted some so-called advice sites charging up to £149 for this information. Read on and you can have it for free.
Basic Bank Accounts
These accounts are suitable for you if you would like an account that does not allow you to go overdrawn, or if you are unable to pass the credit check requirements for a standard bank account.
They are all offered by UK High Street banks. All will provide you with a card to use at cash machines and two will offer you a debit card that you can use to make purchases in stores and on the internet.
If you have poor credit you may also find that the bank is more likely to move you to a standard current account if it can see that you conduct your account well over a period of time. You should ask the bank before applying if this is important to you.
Post Office
All of the accounts allow you to pay in and withdraw money from a Post Office free of charge. For most people, these provides an easy way to deposit cash and cheques and an alternative to using cash machines.
Many accounts provide online access for you to check your balance and transactions. Some will also allow you to arrange online payments.
Undischarged Bankrupts
If you are bankrupt then you should apply to one of Barclays, The Co-operative Bank or Nationwide. The Co-operative Bank will provide you with a VISA Electron debit card that you can use to make purchase in stores or online.
Record of Fraud
If you have made fraudulent applications in the past, or have other fraud markers against you then you will find it difficult to obtain an account. These will normally be recorded by CIFAS, and you may need to wait until these markers expire (usually thirteen months from registration) before you are able to open an account.
Debit Card
NatWest and the Co-operative Bank both offer debit cards that you can use in shops and online to make payments. Co-operative Bank offer a VISA Electron card that is accepted by many merchants displaying the VISA sign. NatWest offer a Solo card which is part of the Mastercard network. Both cards require authorisation for every transaction and you may on occasion find that retailers are not prepared to accept them.
Cheque Book
These accounts do not offer a cheque book. For small amounts consider postal orders. For larger amounts you will be able to obtain a "counter cheque" from a branch, which is simply a cheque drawn on your account written by the bank.
Banks Offering Basic Accounts
Abbey
Alliance & Leicester
Bank of Ireland (Northern Ireland and Eire only)
Bank of Scotland
Barclays
Clydesdale
Co-operative Bank
First Trust Bank
Halifax
HSBC
Lloyds TSB
Natiowide Building Society
NatWest
Northern Bank
Royal Bank of Scotland
Ulster Bank
Yorkshire Bank
