Been turned down for a regular debit/credit card account, why not try a basic bank account
You don’t typically have to have credit problems to open a basic bank account. Although these accounts are designed for people with poor credit scores who have difficulty passing the credit check for standard bank accounts.
Basic bank account offers a debit card, so you can make payments in shops and online, and will allow you to set up direct debits to help make paying bills cheaper than paying by cash or cheque.
With a basic bank account you will not have the use of an overdraft, but take note this dose not mean you can’t incur charges. If you intend to have Direct Debits payments coming out from your account you will need to manage your account and insure the money for your direct payments are in your account or you’ll be charged an ‘unpaid transaction fee of up to £25 a time.
To avoid these fees you can to set up Standing Order this means you control when and how much will be paid out on the day that you arranged for it to be taken. Make sure you enough money in your account from at least two days before your debit due dates.
Check out: https://www.youtube.com/watch?v=rzO0BGvhNHw
Improve your credit rating, check out: Credit Scores
Identification is required to open a basic bank account check out: list of what ID
According to the money advice service two banks seem to welcome basic bank account customers. Please refer to the full report. The following are extracts from the money advice service: https://www.moneyadviceservice.org.uk/en/articles/choosing-a-bank-account-for-
Both Barclays and Co-op say that as long as you have proof of address and ID, you can get a basic bank account.
Barclays adds that it automatically offers a basic account to anyone who passes address and ID checks, but who can’t get a standard account because of their credit score – which is something MoneySavingExpert.com has been campaigning for.
Neither account will give an overdraft (Barclays has a £15 buffer), nor any interest if you’re in credit but you’ll get a Visa debit card, and you can set up direct debits and standing orders. Because you can’t go overdrawn, you need to make sure you have enough money in the account to meet any payments, else you’ll be charged an ‘unpaid item’ fee. If you incur multiple charges, these banks could cancel your direct debit facility, or close the account.
Alternatively check out the following links for more information
- Credit Unions
- Post Office Card Account
- Prepaid Cards guide
- Find a credit union in your area on the Association of British Credit Unions website
Update: Many banks are introducing a new service called pay your contacts, this new service will be a new way to send and receive money. you will no longer have to have your acc details to hand to use this service, it works through the internet and has the same security standards as internet and mobile banking. for more information check out your local banks website.