"Safe" credit and bank accounts

David_Mee

Hi,

I have a friend who's family are all completley twitched about debt (rightly so - dad killed himself after racking up £25k CC debt!!)

At the moment she only has a building society account that her salary gets paid into - to get money out it means a trip to the branch clutching account book. It also won't let her go overdrawn.

She is now hoping to move out and set up her own home and realises that out in the big bad world you need (or life is easier with...) current accounts and maybe credit cards.

I am trying to find her current accounts that UNDER NO CIRCUMSTANCES will ever let you go overdrawn and credit cards where you have to pay them off in full each month. (And preferably they don't keep racking up your credit limit "as you're such a good customer!" )

Anyone any ideas??

seven-day-weekend

What's wrong with her Building Society Account for everday cash?

Maybe she could transfer some of it into a current account if she needs one for Direct Debits, but she need only put the amount she needs in for the DD.

I have a Co-OP Current account with no O/D limit....I chose not to have one. However, I could go overdrawn in it by accident....but not by much.

I wouldn't bother with the credit cards at all.

homersimpson_3

I have a friend who's family are all completley twitched about debt

what does completely twitched mean- never heard of phrase. nervous? fear? petrified?

am trying to find her current accounts that UNDER NO CIRCUMSTANCES will ever let you go overdrawn and credit cards where you have to pay them off in full each month.

When you open most if not all current accounts the bank will give you overdraft limit they think appropriate which you can ask to be increased or decreased to nil. why are you even considering credit cards if friend under no circumstances wants overdraft. why just not move enough money from savings account to basic account to cover everyday expenses - does friend want to pay things by direct debt? if so many accounts suitable- what are nearest banks, building societies? does friend want on line banking?

grumbler

Many basic accounts come with Solo or Visa Electron debit card and allow Direct Debits and Standing Orders. Unlike current account they don't offer chequebook. Unlike Visa/Maestro debit cards, Solo/Electron cards in theory don't allow you to get overdrawn, but in practice this can happen with small retail transactions. Only with a cash card you cannot be overdrawn and only if you use it in UK. Also if DDs/SOs are used with basic account, account holder can be charged for bonced DDs/SOs if there aren't sufficient funds on the account.

http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf
https://www.justabank.co.uk/pdfs/bank-account-guide.pdf

Aark

credit cards where you have to pay them off in full each month

These do exist, but are called charge cards:
http://www.apacs.org.uk/payment_options/charge_cards.html

However, these cards have an annual fee.

In any case, most credit cards will allow you to set up a direct debit to pay off the full balance each month automatically.

kenshaz

seven-day-weekend wrote:

What's wrong with her Building Society Account for everday cash?

Maybe she could transfer some of it into a current account if she needs one for Direct Debits, but she need only put the amount she needs in for the DD.

I have a Co-OP Current account with no O/D limit....I chose not to have one. However, I could go overdrawn in it by accident....but not by much.

I wouldn't bother with the credit cards at all.

But sometimes you need a credit card.i.e hiring a car abroad (it is obligatory with some),on board a cruise ship and emergancies ,must be more

David_Mee

Replies to everyone...

As I said in original message - getting money out means a trip to the building society so emergency cash when shut is not an option.

She wants the convenience of current account and credit card (extra protection when buying stuff off internet / problems with goods etc) but knows that if someone waves a £5k overdraft and £10k credit limit then she will go silly and spend it ;-)

I know you could say "grow up" and expect her to manage and not overspend but then this forum wouldn't exist would it ;-)

Do charge cards provide protection a la credit cards?? Might be worth annual fee if no chance of not paying in full - yes I know she could set up DD but its stopping herself cancelling the DD when things get tight that she doesn't trust ;-)

David_Mee

homersimpson wrote:

what does completely twitched mean- never heard of phrase. nervous? fear? petrified?

Yes - she's nervous about it

When you open most if not all current accounts the bank will give you overdraft limit they think appropriate which you can ask to be increased or decreased to nil. why are you even considering credit cards if friend under no circumstances wants overdraft. why just not move enough money from savings account to basic account to cover everyday expenses - does friend want to pay things by direct debt? if so many accounts suitable- what are nearest banks, building societies? does friend want on line banking?

She doesn't want hassle of having access to money only when building society open and yes wants online banking plus ability to set up standing orders and DD etc