New bank account/switching pre-DMP

jojo_modjo

Hey all,

Before I officially start my DMP, SC recommended that I get another bank account so that I am no longer using my account with a high OD facility.

I've looked into switching deals, particularly the one from First Direct as they offer £125 for switching to them.
Am I able to take advantage of switching deal, (provided I get accepted of course) and leave the negative balance in my account for paying off with SC? My concern is that all (or even part) of the negative balance with transfer over and not really giving me the fresh start I need.

Am I just going to have to open an account as it is and manually get all my direct debits transferred? Any advice or ideas on how I can go about this would be appreciated.

sourcrates

Normally you would open a new basic bank account, with a lender with whom you have no debts.
A basic account is assessable to everyone regardless of credit status, but you will have to search for them, as they are not widely advertised by the banks.

You should not open an account that includes an overdraught facility, or use any switching service.

Stepchange should of pointed that particular point out to you.

littlesprinkles

Hi JoJo,

I opened a basic account with Nationwide, with no OD, no fees, no money. There are T&C's connected to these bank accounts, and I doubt they would offer you the switching fee if you have a bad credit rating.