Getting a bank account even after being refused
DO YOU have access to a bank account? Muir can help you get one if you don’t.
More than one million people living throughout the UK don’t have a bank account but there is a way that many people can get one in just a few short steps.
Many banks don’t publicise them, but Basic Bank Accounts are available to people who have poor credit ratings or a history of defaults.
Muir’s quick guide may enable you to open your own Basic Bank Account, giving you another option by which to manage your money and take more control over your finances.
Anyone with basic ID should be able to get one and get a debit card too.
Muir Money Advisor Wayne Pearson, who appears in the informative video below said: “A Basic Bank Account could provide those without access to a current account with a good alternative.
“These accounts can provide users with a safe way to manage their money and also cut the cost of bills as paying by direct debit can often save you money in itself.
“Anyone who wants to know more should feel free to contact us on 0300 123 1222. Our advice is free with no obligation and residents can speak to us in confidence.
“We are simply here to advise what is available, what it means, and if you need any help with an application, we can help with that too.”
What is a basic bank account?
These bank accounts allow you to store money and pay out of. They do not however, have an overdraft facility or offer any in-credit interest.
Some do give you a debit card so you can make payments in stores and online and all enable you to set up direct debits.
Are they completely free of charges?
No. Just because you don't have an overdraft doesn't mean there aren't charges. If you have a direct debit or set up a payment when there aren't funds in the account you will receive a charge of up to £25 each time.
As such it is very important that you know exactly what money you have in your account and manage it carefully.
Unless you specifically ask for a Basic Bank Account by name, bank staff may not mention them as an option as these type of accounts can often cost banks money.
If you have been rejected for a current account at one bank, it doesn’t mean you will be rejected by all banks. However, if you have tried several and still can’t get a current account, then a Basic Bank Account is a potential option as banks do make them available to people with poor credit scores.
Who can open a basic bank account?
Apart from a few exceptions, anyone can get a basic account, even those with credit history problems - such as having been declared bankrupt in the past year.
Some people with history of criminal convictions for fraud may be turned down (though banks work with prisoners to give them access to accounts so having a criminal record is not an exclusion).
Due to financial regulations you also need to have ID, usually in one of the following forms:
• Full, current passport
• Current European Union member state Identity Card
• Current UK Photo card driving license or UK full paper driving license
• Shotgun License or Firearms Certificate
• Identity card issued by the Electoral Office for Northern Ireland
• Benefit books/benefit entitlement letters; includes pension, Child Benefit, income support, disability and Job Seeker's Allowance
• HMRC Tax Notification or assessment letter
To get more information on how you can get a Basic Bank Account, speak to one of Muir’s Money Advisors on 0300 123 1222.