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Can't open a bank account because I have a poor credit rating.

(16 Posts)
LauralinezA Thu 29-Aug-13 15:09:13

I'm a single mum and a couple of years ago I became unemployed. As a result i was struggling to pay the bills. My bank account got suspended and I've been unable to open an account with any other UK bank. What can I do?

OldLadyKnowsNothing Thu 29-Aug-13 15:11:53

Can you get a basic account from the Post Office? No overdraft or other credit, but a bank account.

CushyPunt Thu 29-Aug-13 15:12:10

you can open basic accounts with most banks. you wont get a debit card, but are likely to get a visa electron instead.

Halifax's easycash acct is very good.

yellowsnownoteatwillyou Thu 29-Aug-13 15:12:11

Go on "think money" website, they will give you a bank account.

itried Thu 29-Aug-13 15:17:41

Go on to the Money Saving Expert website and search 'basic bank accounts' - lots of info there.

Bennet79 Thu 29-Aug-13 15:35:29

Have a look at bank-solution they helped me open an account with a poor credit rating. smile

keli5325 Thu 29-Aug-13 20:30:59

try co op cashminder or barclays cash card account they are both basic accounts for people with bad credit rating x

Taffylass1 Tue 03-Sep-13 17:44:54

Go to moneysavingexpert. Although Martin Lewis has sold the site, the advice is as good as ever.

BreadAndJamForFrances Wed 04-Sep-13 20:02:03

Our Natwest mortgage was in my husbands name, last year we made a late payment due to the Natwest bank mess-up when everyone accounts were frozen for a couple of the time everything was sorted out, even though the payment was going from Natwest bank to Natwest mortgages, and the money was in the account, my husband got a bad credit rating....and still has even though we have paid the mortgage off in full! and he damaged my rating by association.

My husband managed to get a basic account with HSBC and the Co-op Bank...we were advised by CAB to try and get more than one account, even if he just put £1 in, to get a better credit rating.

The basic account is good, he has a cash point card, can't pay in shops with it though and no cheque book.

It has been just over a year now since DH opened the account and he has just been sent out a proper debit card, so they must trust him now!!

Simbolic Tue 10-Sep-13 18:32:25

Nat West do a basic bank account which has a Visa Debit card.
I opened one a couple of years back when I thought I'd have to go bankrupt (didn't in the end)
I used it for all normal transactions in places you'd use a debit card, including shopping on the net in other countries with no problems.
There's no overdraft possible & you can't get a cheque book for the account.
The only real downside is you can only use NatWest, Ulster or Bank of Scotland cashpoint machines with it, apart from the Post Office.

CogitoErgoSometimes Wed 11-Sep-13 06:42:49

Breadandjamforfrances.... that's an appalling story. One solitary late mortgage payment really shouldn't affect anyone's credit rating to the extent you describe, even if there hadn't been a problem with the system. Have you contacted the banking ombudsman or made a stink about it to the bank?

fakeblondie Wed 18-Sep-13 00:59:56

Breadandjam sorry but i dont thomk your DH would be turned down for a bank account for 1 late payment on mortgage , and if it was only a few days this prob don't even show up .
You need to check your full credit file.

BreadAndJamForFrances Mon 23-Sep-13 15:45:18

Cogito and fakeblondie - the late payment was counted as a default which stays on your records for six years. Our joint current account with Natwest had been frozen, Natwest hadn't told us this and we had no idea until Direct debits and standing were being returned. Thank goodness I had kept my HSBC account going in my name, we arranged for DH's wages to be paid there and I phoned every company gas, electric, car finance, etc., to make payments and swap details to my account. It was an utter nightmare At the time all this was going on, our house was on the market, and Natwest knew this and that it was priced for a quick sale....they'd get their money in full in a matter of weeks.
We had decided to move quickly for totally unrelated reasons, and would need an account for the sale money to be paid into.....the mortgage was in DH's name only and couldn't be changed quickly, so we needed another account for the money to be paid into by our solicitor......he was just gobsmacked that Natwest were so bloody unhelpful...he told me they were awful when he needed to speak to them about the mortgage. We tried several banks without success, but HSBC let DH open a basic account. We did try to make my account joint, but this was not possible with his now bad credit rating. Previous to this, we had credit cards, loans, finance and had always paid on time so did have a good credit rating.
I have tried to complain to Natwest, but I get promises of a return call which never comes....infact, Natwest still owe us £800 in a payment taken by mistake (theirs) but I have given up trying to get this back too.
We will never, ever bank with Natwest again.

fakeblondie Mon 23-Sep-13 23:29:48

1 late payment cannot generate a default.
A default is as a result of several missed payments and you get a letter prior telling you in a formal notice that a default will be issued unless payment is received.
If this didn't happen you have grounds to get the default removed.
Try going onto the consumer action group forum and you will get some great advice .
Sounds like a nightmare I hope you are sorted.
Oh and the consumer action group will help you claim back your 800 also, or at least advise you on the best legal process.

OrangeFlower7 Tue 24-Sep-13 15:12:56

Hi I can second the Co-op Cashminder- it's great, you can do online banking and when you run out of money it doesn't let you buy anything with the debit card that would take you overdrawn, unlike a previous bank account which would happily do that and give you changes. i think this is as it is a Visa Electron card.

If you have debt you are struggling with you could open this new account and set up a payment for a debt management plan, I had one with Payplan which is a free organisation that does it for you. Avoid places that charge you to set one up.

OrangeFlower7 Tue 24-Sep-13 15:14:54

Just noticed a comment about a basic account where you could just use the card for cashpoint but not in shops, with the Co-op one it can be used as a debit card so in shops and to pay over the phone. HTH

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