Bad credit with money and no debts - I want a decent savings account

Fuu

Hi,

I've suffered with bad credit over the past few years, but I've come into some money recently and have been able to clear my debts, but I still have a wrecked credit file looming over me, including a CCJ which won't disappear for 6 years now.

However, I do have a fair bit of cash now that I obviously want to put away and save, to make the most of it. A lot of good interest savings accounts are tied to current accounts. I already have a current account with Barclays that has no benefits, so I want to move. Do you think I'd get accepted elsewhere given my bad credit history? Especially considering I'm willing to move quite a bit of money to their bank?

If not, what's the best savings account I can hope to obtain in my situation?

Thanks.

vouch0r

id await a more experienced member to respond, but with me current accounts are like savings accounts, they are happy for everyone to have one.

the application checks are just name and address confirmation. id suggest not applying for any OD at all.

Fuu

vouch0r wrote: »

id await a more experienced member to respond, but with me current accounts are like savings accounts, they are happy for everyone to have one.

the application checks are just name and address confirmation. id suggest not applying for any OD at all.

From what I understand from the bank account guide, banks have to "want you as a customer" for current accounts and do a full credit check to make sure you're worth their while, so this is what I'm concerned about.

As for an OD, I definitely don't want or need one.

Aquamania

Fuu wrote: »

Hi,

I've suffered with bad credit over the past few years, but I've come into some money recently and have been able to clear my debts, but I still have a wrecked credit file looming over me, including a CCJ which won't disappear for 6 years now.

However, I do have a fair bit of cash now that I obviously want to put away and save, to make the most of it. A lot of good interest savings accounts are tied to current accounts. I already have a current account with Barclays that has no benefits, so I want to move. Do you think I'd get accepted elsewhere given my bad credit history? Especially considering I'm willing to move quite a bit of money to their bank?

If not, what's the best savings account I can hope to obtain in my situation?

Thanks.

If you've come into that amount of money, I suggest you see an IFA for best investment advice.
Even 5% offered by TSB on £2k is peanuts compared to other investment opportunities.

colsten

You won't be able to get a new current account with a CCJ, I am afraid.

Going to an IFA is a good idea if you have at least £50-£100K, and if you want to invest the money for some 7-10 years. If you need access to the money any earlier, or if it is less, an IFA won't be interested.

Fuu

Turns out, I had an old Santander account I was able to upgrade to the 123 Current account. Thanks for the help though, guys. I just have a few questions still, if anyone can help?

1) The 123 Current account says it pays 3% interest between £3,000 and £20,000. So, am I right in presuming any amount put into the account higher than £20,000 will gain no interest and basically sit there doing nothing?

2) There is a £500 minimum deposit each month. If I already have £20,000 in there and don't want to put any more money in (assuming the interest does cap at £20,000), can I set up a standing order for that £500 to go from my Barclays account into the Santander account each month, and then another standing order sending the £500 back? Will that meet their criteria and allow me to keep earning that 3% interest?

Thanks.

ColdIron

Fuu wrote: »

1) The 123 Current account says it pays 3% interest between £3,000 and £20,000. So, am I right in presuming any amount put into the account higher than £20,000 will gain no interest and basically sit there doing nothing?

2) There is a £500 minimum deposit each month. If I already have £20,000 in there and don't want to put any more money in (assuming the interest does cap at £20,000), can I set up a standing order for that £500 to go from my Barclays account into the Santander account each month, and then another standing order sending the £500 back? Will that meet their criteria and allow me to keep earning that 3% interest?

1) Yes you are right

2) Yes again, you're on a roll. Just remember that the Santander month is not a calendar month so take care when setting the SO dates

Fuu

ColdIron wrote: »

2) Yes again, you're on a roll. Just remember that the Santander month is not a calendar month so take care when setting the SO dates

Oh geez. How does a 'Santander month' work then?

Aquamania

colsten wrote: »

You won't be able to get a new current account with a CCJ, I am afraid.

Going to an IFA is a good idea if you have at least £50-£100K, and if you want to invest the money for some 7-10 years. If you need access to the money any earlier, or if it is less, an IFA won't be interested.

You don't need anywhere near £50K-£100K to invest to seek the advice of an IFA, and of course they will be interested if it is less.
e.g. many people seek advice from an IFA to assist them in choosing a suitable ISA for home for say £5k-£10k

brightonman123

Be sure to check your credit records are updated, to confirm paid in full / 'satisfied'.


Ask on twitter, may get replies from banks re general situation- I doubt any would turn down a big saver!

ColdIron

Fuu wrote: »

Oh geez. How does a 'Santander month' work then?

It runs from the day in the month from when you opened the account, e.g. the 9th June to the 8th July. Just leave enough of a margin so that you're not caught out by bank holidays and or weekends, I usually add 5 days to be safe e.g. the 14th