Have the funds to clear my debt, just need a little advice

Abc_123_2

Hi

I'm in the very fortunate position to be able to pay off all my debt (£7000 ish) as I'm about to receive a fairly large inheritance. My issue is I don't have a current account. I have a savings account in to which the inheritance will be paid but I really need a debit card to pay my debts. My last current account was cancelled 18 months ago and I have been turned down since for a new one.

Is it worth me applying after my inheritance is paid? Ill inherit just over £100,000.

The savings account is with a bank I owe nothing to.

caz2003uk

Open a basic account. I have a basic account with lloyds, this account comes with a debit card!

There is no overdraft/cheque book facility, but internet banking is available and the debit card is accepted everywhere. The only downside is not being able to use every cash point but tbh this doesn't overly bother me since if i need cash i can get cash back or use a lloyds cashpoint or they have now allowed a couple more banks cash machines to be used.

rising_from_the_ashes

Others offering good basic accounts are Barclays and the Co-op

mobilewizard

Abc_123 wrote: »

Hi

I'm in the very fortunate position to be able to pay off all my debt (£7000 ish) as I'm about to receive a fairly large inheritance. My issue is I don't have a current account. I have a savings account in to which the inheritance will be paid but I really need a debit card to pay my debts. My last current account was cancelled 18 months ago and I have been turned down since for a new one.

Is it worth me applying after my inheritance is paid? Ill inherit just over £100,000.

The savings account is with a bank I owe nothing to.

You could always go for a pre-paid card like a Cashplus MasterCard? They allow you to transfer payments onto the card, and you can use it to make card payments? They also offer a creditbuilder service, it will cost you about £6 a month over 12 months (this covers the cost of the membership to the service), but every time you pay your monthly fee, they will report this to credit reference agencies as a satisfactory payment.

Only other option would be to get giro slips from your creditors and pay them in the bank? The first option is probably easier though.

stuckdebt

You could open a halifax Easycash account, theyre no hassle, i did it online, didnt need to send anything and had the account details right away and the card/pin a few days later. Full online banking also.

Abc_123_2

Just to clarify things in my own mind, will the ability to clear all my debts have any bearing on me being able to open an account? I have been turned down for a Santander basic account recently.
I didn't mention the inheritance to santander as the amount and date of payment hasn't been settled.

My savings account is with Halifax, and I owe them nothing. Would they be my best bet?

Giraffeseeker

Savings accounts are not reported to your credit file so have no bearing on you being able to open an account.

That said, if you have large savings with the Halifax AND operate a basic account with them with no problems for a few months, the savings MAY well go in your favour to convert your basic account to a current one.

You can't be turned down for a basic account. You really need to get one open ASAP - without any account at all I expect it affects your credit scoring quite a bit.

Abc_123_2

I can't be refused a basic account, is that true? I don't have any convictions for fraud, but I do have 3 ccjs and a bank account that was canceled which I owe money on.

rising_from_the_ashes

Have a read through this http://www.moneysavingexpert.com/banking/basic-bank-accounts

Barclays & Co*op are probably your best bet initially.

Abc_123_2

Am I being a little naive in hoping once my saving account balance is £100,000 that ill get a basic account no problem?

I thought that the bank (halifax) would see the balance and decided a basic account with no overdraft or cheques as a small price to pay in order to keep the balance.

opinions4u

Halifax savings accounts will allow you to walk in to a branch and gets bankers draft for free.

So while I'm not a fan of paying for envelopes and stamps, there is another option.

You should be able to apply online for their basic account.