Current Account Suggestions please....

TraceyD_4

My partner has a bad credit record but does have a Halifax Card Cash Account with an Visa Electron card + cheque book. The only problem with this account is that it takes 7 working days for a cheque to clear!!!! As he is self-employed and the majority of his customers pay by cheque this is a budgeting nightmare. Can any one suggest a Current Account which would offer the same as the Halifax (no overdraft required) but that has quicker clearing times and that are likely to accept him!

jonesMUFCforever

Most banks will offer basic or cash accounts with standing orders and direct debits but no cheque books and cashpoint with some are restricted to that bank (ie no withdrawls at any other bank).
All these accounts will only allow withdrawls against cleared funds.If you take the day you pay a cheque as day 1 (eg Monday)then a withdrawl will be allowed on day 5 (Friday) as long as the bank has no knowledge that it is being returned to them unpaid.
From this you can see that you stand to gain very little by changing at this time.
Could he not insist at the beginning of a job that some/all of the monies be paid in cash?
Eric

TraceyD_4

Unfortunately most of his jobs are with larger companies so only pay by cheque and won't pay be BACS either! They also only pay once a month - but thanks for the suggestion.

sunflower_2

i have the same account and the cheque clearing is a nightmare.
but if you write a cheque it comes out of your account within days!
how unfair is that?

have tried elsewhere but halifax is one of the only basic accounts to offer a cheque book facility (apparently the cardcash is a step up from their "basic" account - wow eh)

could you add your partner onto your current account?

am not sure if he would be credit checked or not?

or could the companies not make the cheques out to you?

sunflower_2

just a thought - how long to cheques take to clear in one of the halifax savings accounts?

he could open one of the online websaver accounts, clear the cheque in there then transfer it over instantly online???

davidcampbell

sunflower, when you write a cheque out it will debit your acocutn when your bank have been informed about it - reason being that they ned to be able to let the other bank know if you can cover it.

imagine they said you could but didnt actually take it out and then you inadvertantly (sp?) spent all your money that was meant for the cheque

chaos !! the cheque will be returned, you will go overdrawn and whoever you have given it to will be on your back to get their money

hope that helps

jonesMUFCforever

Just had another thought. Has he approached a bank to open a BUSINESS account if he is working for himself.
The criteria for opening business accounts is different to personal accounts.He should ask to speak to a business manager and tell everything about previous bad credit rating (it will come out anyway when doing a credit search)and see what could be done.
If previous bad rating is a few missed payments rather than full CCJ he might find someone willing to give him a chance.
Eric

sunflower_2

davidcampbell wrote:

sunflower, when you write a cheque out it will debit your acocutn when your bank have been informed about it - reason being that they ned to be able to let the other bank know if you can cover it.

imagine they said you could but didnt actually take it out and then you inadvertantly (sp?) spent all your money that was meant for the cheque

chaos !! the cheque will be returned, you will go overdrawn and whoever you have given it to will be on your back to get their money

hope that helps

thanks david - i understand

TraceyD_4

Thanks for suggestions - will try out the savings account idea. Have tried the adding to my current account but unfortunately my credit rating is now not so good either. We do have a joint savings which we sometimes put cheques through but want to try and build our credit ratings up again so want to be seen to be paying money into hubby's account!

Haven't got any CCJ's but moved 3 times in a two years and now don't own a house but have to rent!

deemy2004

To improve yuor credit rating you need to have credit / charge cards or an account with an overdraft as other types of accounts are unlikely to have any impact on credit ratings.

TraceyD_4

thanks for suggestion but he has been refused any other accounts due to credit history including credit cards - also don't really want to start any new credit cards as been down that road before and got in trouble - hence the problems with credit history!