UK Bank Accounts for people with bad credit
Depending on ones UK Bank Accounts status, for people with bad credit this could impact on your ability to get a mortgage or re-mortgage onto a more attractive interest rate package. Your car may need replacing and, although you may be able to arrange car finance, the interest rate charged may well be at a significantly higher rate of interest than what you would pay if you had a satisfactory credit history.
If your UK bank requested that you make alternative banking arrangements because you have not conducted your account in a satisfactory manner you may have difficulty opening an account that offers the same facilities that you have become used to in the UK.
Do not despair because there are other financial institutions that offer Bank Accounts for people with bad credit, that provide many of the benefits you have become used to. These are sometimes known as guaranteed bank accounts because they do not carry out a credit reference search on you so even if you are bankrupt you would be accepted. One such bad credit account is the CashPlus account, which even offers a prepaid Mastercard as part of the package!
What UK Bank Accounts for people with bad credit provide by way of facilities: –
Your salary, wages, pension or benefits can all be paid directly into the account. Your regular monthly bills such as council tax, water rates, gas and electric can all be paid by direct debit or standing order.
Having allowed enough funds in your bank account to cover these bills the remaining funds are transferred onto a prepaid debit card often with MasterCard. You can then use the debit card to withdraw cash or use the card to purchase goods and services in shops, over the phone or on the Internet. You can even use the card abroad.
A lot of financial institutions that supply a no credit verify account. This is helpful to individuals who may possibly desire to apply for a credit score card with their picked financial institution. The information would be to hold a great standing with your account and not operate also deep into your overdraft. You would have to have to transfer any overdraft that is currently accrued if you are switching accounts, so bear that in mind.
Many of these providers of bank accounts for people with bad credit provide a personal banker to help manage your account.
There is often a one off charge of between 20 and 30 to open one of these accounts plus a monthly charge of around 10 to 20 but this is perhaps a small price to pay to be able to obtain an account that provides an adequate level of services.
In due course, should your credit rating improve, you may be able to reapply to one of the major banks or building societies to open a standard account with them.
Because there are a providers who offer bank accounts for bad credit you ought to do some research as they may well offer slightly different features and benefits to each other.
In conclusion, UK Bank Accounts for people with bad credit offer a lot that can benefit many individuals going through financial problems.