IVAs and new bank accounts

Debdoo_2

HI All Im a newbie so please bear with me Here goes:
My husband and myself got in to alot of debt and got accepted for an IVA recently.During the time our IVA apllications were going through we were advised by Clearstart that the Halifax would freeze our joint account.Anyway IVAs were approved on December 21st and Halifax account still going.We owed £2500 on the overdraft.

Now i basically would like some sound advice about what to do about the bank account - we got hubby a new one with HSBC qiute soon after applying for IVA but when i tried a month or so after i was rejected for not meeting their credit criteria - obviously i know this is because of my now poor credit rating but Im now worried this is gonna happen everywhere i apply for a new account.

To make matters worse hubby has now moved out and we are having a trial separation - he is very depressed about the whole thing and says he needs space.

So if anyone has any advice on where is the best place to go for a new bank account for bad credit ratings then please reply many thanks Debbie

moxie_2

Hi Debbie. have a look at the current account section on this board, sorry I'm rubbish at doing links. There is a thread called Citibank new applicant? Citibank seem to be accepting people with poor credit ratings quite happily. You get a Visa debit card and even a cheque book. I've applied myself and am waiting to hear, and my credit rating is the worst, so if I get it anyone can! If you apply through Quidco you get £50 cashback as well. Hope this helps.

shameless-about-money

In an IVA you need a Basic Bank Account

http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

moonlightpjs

shameless-about-money wrote:

In an IVA you need a Basic Bank Account

http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

I would have thought that being in an IVA or DMP for that matter means that you cannot get credit. Citibank operate their current account on this basis, it does come with a Visa Debit Card and even a cheque book in some cases but for instance in my case, I have really poor credit history but have been issued with both the above but my debit card is not also a cheque guarantee card, therefore not allowing me to become overdrawn. I also have no OD facility.

Do read the Citibank applicant thread as you will see that all different people have been issued with different cards and in some cases chequebooks, I think it depends on their credit scoring.

Here is the link:-

http://forums.moneysavingexpert.com/showthread.html?t=321204

Also, here is a link to the basic account thread:-

http://forums.moneysavingexpert.com/showthread.html?t=319736

I was on A DMP and was turned down for a few basic accounts but accepted for the Citibank account.

Hope this helps, good luck
Lisa XX

shameless-about-money

Being in an IVA means that you can only have a basic bank account, no cheque book and no overdraft facitility and it must not be a bank that is one of your creditors.

Citibank are not on the chart of basic bank accounts.

The co-op, Nationwide and Abbey will all give undischarged bankrupts a basic bank account - the co-op has a visa electron card with it.

artic_fox_2

i got an abby basic account easerly which works fine for me can get money out at post office easy

james32_uk

You can have any bank account in an IVA as long as it has no overdraft facility.

Debdoo_2

Thankyou for all of your replies everyone - you have all been very helpful and i was already thinking of trying Citibank just from looking at some threads the other night.
My only concern with a Citibank account is i dont earn enough to be paying in £1500 a month but i may just apply anyway and i will keep you posted of the outcome.
Also does anyone know why Halifax have not frozen my current account? and when it comes to switching how do i close the Halifax account? In writing or what? Sorry for the naivety but have been with the Halifax since i was 15!
Thanks
Debbie

james32_uk

You're probably very lucky that Halifax havent frozen your account already. They'd be quite within their rights to wait until you make a large deposit (wages etc) and then use that to offset some of what you owe.

You should open a new account quickly and just stop using your halifax account. No need to close it, just stop using it.

Dont worry about earning 1.5k per month for the Citibank account, that only unlocks doors to a chequebook/overdraft and stuff which you dont want anyway.

Debdoo_2

Thankyou James for replying about halifax freezing my account - i will look into opening one with Citibank
Debbie

james32_uk

Debdoo wrote:

Thankyou James for replying about halifax freezing my account - i will look into opening one with Citibank
Debbie

In the meantime is there a friend's or relative's account you can pay your wages into? Just in case.