What's th best Bank Account for someone with a very bad credit rating

icebergx

Hi all,

A friend of mine has a very bad credit rating and needs to open a bank account to get the wages from his new job paid into.
Can someone advise me on the best opition and preferably one which will help to improve his credit rating in the long run?

Also, he mentioned a prepaid card called the "Tuxedo Card" which would allow him to do accept wages. Is this true or is this just a normal prepay card? Are any of these types of cards a good option?

Thanks.

mum2one

the Tuxedo card, whilst yes I would say get one if your friends in a mess, its the same principal as a top up fone, no money no spend. Before they have their wages put into it, plz check all the small print as there may be a charge everytime the card gets used.

A lot of banks do the basic bank accounts, which allow debits to be set up to come out, allow bacs transfers (wages), cash point/debit card, no cheque book / cheque guarentee card / overdraft facility.

Even go through the post office.

icebergx

So of the prepay cards, is the Tuxedo the best and/or cheapest?
Can you still get one of the basic bank accounts if you've got a really bad credit rating?


Edit: I've just found the Newcastle Building Society B & F Prepaid MasterCard.
This seems like the best Prepay option. Would you agree?

mum2one

haveing a quick look at the link on that pg, one of the better ones looks like the Sun (monthly) u pay £4.99 per month,

Also try Quidco for cash back if you buy a prepay card.

I personally would go down the bank account route 1st, even with a crap rateing your be able to get a basic bank account.

gt94sss2

icebergx wrote: »

A friend of mine has a very bad credit rating and needs to open a bank account to get the wages from his new job paid into.
Can someone advise me on the best opition and preferably one which will help to improve his credit rating in the long run?

Your friend wants what is called a Basic Bank account - the leaflet includes a list of providers.

I would strongly suggest they get one of those (having one will gradually improve their credit rating) rather than a pre-paid card which would do nothing to improve their credit rating.

Regards
Sunil