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Bank Switching Newbie Low Income

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Posts: 16 Forumite

Hi all, I want to enter the bank switching world... but I'm a bit clueless.
I want to keep my main account, so I was going to open a "dummy" account - I was going to go for the HSBC one with the bonus, but after further research, I knew I'd be unlkely to be accepted so I didn't do it.
This highlighted to me, though, that once I've got an account, I may not be elidgable for the accounts I want to switch to - I'm on benefits (but with an excellent credit score) and not all banks class this as income... so it got me wondering... is it even worth bothering starting this journey? Is there anyone else who's on benefits but has had success with bank account switching?
Also where would you recommend I start with my dummy account? It would ideally need to be a bank that doesn't often offer switching bonuses so it doesn't rule me out from a bonus in the future?
I want to keep my main account, so I was going to open a "dummy" account - I was going to go for the HSBC one with the bonus, but after further research, I knew I'd be unlkely to be accepted so I didn't do it.
This highlighted to me, though, that once I've got an account, I may not be elidgable for the accounts I want to switch to - I'm on benefits (but with an excellent credit score) and not all banks class this as income... so it got me wondering... is it even worth bothering starting this journey? Is there anyone else who's on benefits but has had success with bank account switching?
Also where would you recommend I start with my dummy account? It would ideally need to be a bank that doesn't often offer switching bonuses so it doesn't rule me out from a bonus in the future?
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Comments
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Monzo, Starling and Metro are probably the most common.
Only do soft searches so won't impact your credit rating and have never offered switching bonuses.0 -
If you don't have a go you won't know
I would start with either Starling, Metro or Monza
When applying ensure you don't make spelling mistakes
Then you need direct debits if it says so in the terms and conditions of the bank you are going to switch to
There may be other hoops to jump through.
Some banks do hard searches (FD and HSBC) as far as I know
Possible switching banks at present are. Nationwide, First Direct, Lloyds and Barclays (Barclays seem to be a nightmare) there are time limits.
Which ever you choose be sure to read and understand terms and conditions. Don't try to switch until you have the debit card (that takes about a week)
Good luck2 -
You won't know unless you try, and unless you have a major financial application on the horizon (mortgage renewal, 0% CC offer coming to an end) then the effects of a few hard credit searches is going to be minimal. Also a note to ignore your credit score/rating - both the number and the descriptor (Good, Fair, Excellent, etc). Banks don't see these and instead use the underlying data on your files to rate you (repayment history, etc) - this is what is important to look at when you check your files and make sure is correct!Every bank will rate you differently as a potential customer, and have different requirements - not all of them published. You started off with one of the more notoriously picky banks by trying for HSBC - other banks may or may not be easier to apply for.As for donors, usually best to stick with a second account with whoever you already bank with, otherwise the digital banks Monzo, Starling, Metro, Chase are all good ones for the reasons stated above.0
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When picking donor accounts I would try and avoid banks that tend to offer switching incentives that exclude existing customers in order to give yourself as many switching opportunities as possible. The main ones off the top of my head are HSBC, Barclays, First Direct and Virgin Money (though their last offer ended about a year ago).
If you ever find yourself struggling to find direct debits for donor accounts I've compiled a list of some savings/investment accounts that let you make deposits by direct debit and debit card. See:
https://forums.moneysavingexpert.com/discussion/6445857/savings-investment-dds-and-debit-card-deposits-an-updated-list/p1
Some of the items on the list also offer sign up offers for new customers so you could get yourself a little bit more money there whilst you're at it, those are added as remarks on the list.2 -
Bridlington1 said:Santander have tended to only let existing customers get their switching incentives if they start them in branch, but have let new customers get the incentive by switching online so that could be something to consider if it is difficult for you to get to a branch.
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