How to get a New Bank Account with terrible credit..

nolongerindenial · 23 July 2014 at 9:20PM

Ok, before I get started I am working my bum off to get out of debt but feel I am being victimised by my current bank (Really long story, got a letter today for them refusing to pay a direct debit on monday which isnt due to go out until tomorrow and has NOT been presented as yet (the money is available and waiting), taking them to the ombudsman about 2 seperate issues already (one bank charges, another where they took the money from my account and never credited it to my mortgage - These are in hand and im not looking for advice on this.. just a bit of a background as to why this banking relationship is becoming unbearable:mad:)

I am looking to move bank accounts, unfortunately on my credit file I have recent missed payments (Mortgage, card payments, defaults, a CCJ - pretty bad record but no IVA/bankruptcy etc)

Now we have history with a few banks so dont really want to go with them (Natwest - owe them £19,000, Lloyds TSB believe I owe them £168 despite full and final settlement agreement and payment, HSBC whom we are with now), so we applied for a account without an overdraft at Tesco bank, they said no..

What we need from an account:
We run our business through a personal account, so we need to be able to have direct debit for our bills
Debit card to enable us to make purchases at our wholesales where pricing is a little fluid so we cant predict what its going to cost

No Overdraft - Dont need one, Dont want one, Dont even try offering me one!
Ability to make and receive electronic payments using faster payments (again as a business we need this feature)

Anybody know any way I can get away from my current horror bank without causing me to many issues?

FireWyrm · 23 July 2014 at 9:43PM

nolongerindenial wrote: »

We run our business through a personal account, so we need to be able to have direct debit for our bills

Oh Yikes! :eek:
That is a clear breach of the banking terms and conditions. If the bank finds out, they will shut down your account, call in your OD and show you the door. You need to stop that right now before they catch you.

nolongerindenial wrote: »

Anybody know any way I can get away from my current horror bank without causing me to many issues?

You are clearly short of options due to previous indiscretions, but you will lose this bank too if they catch you running a business through a personal bank account.

I suggest you sit tight, play nice and go get a business account instead. Tell them you're awfully sorry, but you didnt realise etc...Or open a BUSINESS account somewhere else.

seanavfc92 · 24 July 2014 at 9:36PM

nolongerindenial wrote: »

What we need from an account:
We run our business through a personal account, so we need to be able to have direct debit for our bills
Debit card to enable us to make purchases at our wholesales where pricing is a little fluid so we cant predict what its going to cost
No Overdraft - Dont need one, Dont want one, Dont even try offering me one!
Ability to make and receive electronic payments using faster payments (again as a business we need this feature)

Anybody know any way I can get away from my current horror bank without causing me to many issues?

Open a Basic Bank Account!

I can only assume that you've been asking for a "bank account", a.k.a a current account. They conduct a full credit search to see if you can have a current account, since you can be offered credit on the account (overdraft, phone insurance, breakdown cover, etc etc)

If you go in and ask for a "basic bank account", they will be able to offer you one since you're of no financial risk to them.

Take Barclays for example. They offer a cash card account. You can have direct debits, standing orders, do online and phone banking, have a debit card, and best of all, you won't be offered an overdraft because they're not allowed on this account!

Their website says the following:

Straightforward banking with no frills
Barclays Cash Card Account is a basic account that offers free, no-frills banking for customers who may not be able to open a regular current account. With this account you can:
Choose between a Barclays Visa debit card or cash card (ATM only)
Make payments from your Cash Card Account by Direct Debit or standing order 1
Withdraw up to £300 a day (if you have available funds) from Barclays ATMs or at Post Offices, or wherever you see the LINK sign
Manage your account online, by phone or in branch
Manage your account online by registering for Barclays Online Banking (Link opens in a new window)
Access your account through Mobile Banking
Get Free Text Alerts to your mobile about your account
Transfer money to other Barclays accounts online or by phone 24 hours a day
Bank in more than 1,500 branches nationwide
Get regular statements to help you keep track of your money
Personalise your account in the Barclays Features Store 8 – an online interactive hub where you can shape your account to suit your needs
The following are not available on this account:
An overdraft – so you'll need to ensure your account is in credit before making payments
A cheque book
For your benefit and protection, please ensure you read the terms and conditions for your account.

Other accounts like the Co-Operative Cashminder account, etc, also offer similar benefits!

nolongerindenial · 24 July 2014 at 11:41PM

seanavfc92 wrote: »

Open a Basic Bank Account!

I can only assume that you've been asking for a "bank account", a.k.a a current account. They conduct a full credit search to see if you can have a current account, since you can be offered credit on the account (overdraft, phone insurance, breakdown cover, etc etc)

If you go in and ask for a "basic bank account", they will be able to offer you one since you're of no financial risk to them.

Take Barclays for example. They offer a cash card account. You can have direct debits, standing orders, do online and phone banking, have a debit card, and best of all, you won't be offered an overdraft because they're not allowed on this account!

Their website says the following:

Other accounts like the Co-Operative Cashminder account, etc, also offer similar benefits!

Ill get myself off to barclays and give them a try in the morning

nolongerindenial · 24 July 2014 at 11:43PM

FireWyrm wrote: »

Oh Yikes! :eek:
That is a clear breach of the banking terms and conditions. If the bank finds out, they will shut down your account, call in your OD and show you the door. You need to stop that right now before they catch you.

You are clearly short of options due to previous indiscretions, but you will lose this bank too if they catch you running a business through a personal bank account.

I suggest you sit tight, play nice and go get a business account instead. Tell them you're awfully sorry, but you didnt realise etc...Or open a BUSINESS account somewhere else.

Im having exactly the same issues in getting a business bank account as a current account, ive tried all the main high street banks asking for a business account and get turned down everywhere

They couldnt call in a OD as I dont have one due to the fact I refused one when I opened the account, i know I risk it getting closed down and being shown the door etc.

I know im in breach of the T&C's, they are already aware of it but wont offer a solution in terms of a business account, like nowhere else :mad:

But I keep trying..

Monkeyballs · 25 July 2014 at 4:15AM

Hi,

Never run a business so can't comment in that regard but have you tried approaching your local (assuming you have one, or have one nearby serving your area) Credit Union?

If I was in your position I'd certainly give it a shot

Good luck!

MB

nolongerindenial · 25 July 2014 at 9:32PM

I hate to sound stupid... but whats a credit union when its at home - the word credit scares me as I do not want any more credit ever - its got me into nothing but bother so do not want it any more!

And how would I go about finding one...

mightyroyals · 25 July 2014 at 10:17PM

have a read here

http://www.moneysavingexpert.com/banking/credit-unions

Growurown · 25 July 2014 at 10:24PM

nolongerindenial wrote: »

I hate to sound stupid... but whats a credit union when its at home - the word credit scares me as I do not want any more credit ever - its got me into nothing but bother so do not want it any more!

And how would I go about finding one...

I love my Credit Union. I find it a really useful tool to budget with. I pay them by standing order every month, the money is safe and I can't spend it, but when I do need it I ring them and they transfer the amount I want into my bank account the same day.

StressedSteph · 26 July 2014 at 9:54AM

Personally I wouldn't touch Barclays with a barge pole. + they charge a small fortune for a business account.

Back in January I was in a similar situation to you and I transferred away from Barclays to a Santander 123 account.

It does everything you said you needed + my credit history is terrible and they still accepted me.

I now have no overdraft and I get paid around £8 per month from them because I have my utilities and phones on DD from that account. Its brilliant.

Apply online, its REALLY easy xx

sourcrates · 26 July 2014 at 10:21AM

Cooperative do a good basic bank account for personal use, not sure about the business side.

How to get a New Bank Account with terrible credit..

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