Banks that open account for people with bad credit (in the UK?)

November 20, 2004 11:22 AM

UK Credit Filter - We have bad credit, and now our bank have decided that they want to close my accounts. So in order to be paid, and pay bills...I have to find a new current account. My wife and I know that we can fix our problems with money (and have been doing well for 3 months) - but we cannot seem to find a bank that will open a current account for us.

So for UK askMe people - do you know of a current account that will AT LEAST give us the benefit of the doubt?
posted by anonymous to Work & Money (4 answers total)

Depends what you mean as a 'current' account. The Royal Bank of Scotland do an account, but they will only give you a cashcard - no switch/solo or cheque book. But they will open one for you. The benefit of this account is that you will NEVER go overdrawn and will NEVER pay charges. You can set up direct debits and standing orders, and if there's not enough money in there, then they just don't get paid. No charges. Full stop. They charge a small monthly fee for it, but can be worth it if your employer isn't that reliable with the dates paying you.

Also Natwest do a basic account. You get a solo card but no cheque book or switch/visa. I know people who have used this and it's a good option. Direct debits, standing order etc all ok in there. And the staff in the local branch were EXTREMELY helpful with the problems she had (she was a bankrupt).

Don't bother with the Halifax. They'll shut your account down as soon as blink.

Also the post office do a basic account. They may also give you a cheque book and visa delta.

THIS is a decent resource with lists and comparisons for bank accounts.

Hope this helps
posted by lemonpillows at 12:52 PM on November 20, 2004

There was a fairly big media blitz recently concerning benefits being paid via direct debit (or should that be direct credit? Same as wages anyway) and encouraging all those on benefits to get bank accounts. The issue was that most people on benefits don't tend to have good credit ratings and couldn't, or thought they couldn't, get normal accounts. To counter this the gvt has got the Post Office to set up a limited current account service . So, in short, ask at the Post Office.
posted by peteash10 at 6:21 AM on November 21, 2004

Try the 'living with debt' or current account boards at the UK Motley Fool.
posted by humuhumu at 10:41 AM on November 21, 2004

I'll second the Motley Fool recommendation - the guys and gals over there are HUGELY helpful with issues in general. I'm sure they'll have covered something like this.

Best of luck.
posted by snowgoon at 4:26 AM on November 22, 2004