Changing to a new current account after paying off a DMP

swansea_lad

Hi all

I currently have a basic bank account with Virgin Money. Has anyone opened a new current account after paying off their DMP? I have does a search online for information but cannot find much.  Thanks

Rob5342

With bad markers on your credit report some banks will limit the type of account you can open, and it will probably be hard to get an overdraft, but you should find plenty that let you open an account (especially the modern banks like Monzo, Starling or Chase)

I've never understood why some banks have a dedicated basic account rather than just not giving you can overdraft facility.

gary1312

Rob5342 said:

I've never understood why some banks have a dedicated basic account rather than just not giving you can overdraft facility.

Because basic accounts have to be fee-free by law, whereas with yer everyday current accounts they can charge a fee for refusing a payment. 

WillPS

swansea_lad said:

Hi all

I currently have a basic bank account with Virgin Money. Has anyone opened a new current account after paying off their DMP? I have does a search online for information but cannot find much.  Thanks

If there's a current account you'd particularly like elsewhere then what's the harm in trying? Worst they can say is no and leave a hard search (for a year) which will be pretty small beer compared to the blot from your DMP.

Ultimately it's the only way to know, expect a decline and you might be pleasantly surprised.

swansea_lad

Anyone else recently payed off their DMP? Interested in the best way to improve your credit history. 

eskbanker

swansea_lad said:

Anyone else recently payed off their DMP? Interested in the best way to improve your credit history. 

Maybe worth reading a couple of generic MSE pieces about ways to (re)build credit history:

https://www.moneysavingexpert.com/loans/build-credit-history/
https://www.moneysavingexpert.com/loans/credit-rating-credit-score/