Call free today: 0800 0431 431

How to open a new bank account in just 4 simple steps


When was the last time you thought about the relationship you have with your bank?

Chances are, it’s something you don’t tend to give a second thought. However, it isn’t until there is an issue with your account, or you face the prospect of changing bank that you notice just how closely linked you feel with certain financial institutions.

In fact, according to the Financial Times people in the UK are more likely to get divorced than split with their bank.

But what if you’re facing problems with your debt?

Knowing that your debts are under control and you have a plan in place to repay what you can afford in a reasonable timeframe brings an undeniable sense of peace of mind but it’s important to be aware that this peace of mind could have an impact on your banking provider.

Time for change

If you’re a relatively new client with us, and you owe money to your bank, we may have asked you to make a switch and open up a new basic account. Once you enter into your arrangement with Creditfix, your old account will be at high risk of being frozen and will likely be closed down.

It is for this reason that we request you to change banks. Many of us have stuck with the same bank account for years, but whilst you may want to remain loyal to the bank, unfortunately the bank may not return this loyalty.

Understandably, this can be stressful, however switching banks doesn’t have to be complicated. We’ve set out a guide below to help you open a new account in just a few simple steps.
Get debt help today


What kind of account can I get?

It is rare for a bank to refuse you a bank account. However, being in an IVA does mean there are a few restrictions on the type of account you should open.

You won’t be able to open a new account with your current bank for the reason mentioned above, so you will need to choose an alternative one.

Your agreement is noted on a public register, so banks will be able to see that you are insolvent. It is for this reason that we request that you open the most basic current account available.

Having an account with no credit facilities attached, will help you to avoid the new one being frozen as the bank will not have a sustainable reason to do so.

Steps to opening a new bank account

1. Selecting a bank

There are several banks to choose from, all of which have their pros and cons. Take a look at what each one has to offer you and choose one that feels best suited to your needs. At Creditfix we recommend Monzo – who’s basic account offers a range of features, including spending budgets, which are well suited to help our clients manage their money.

2. Applying for an account

You can apply for most accounts online with just a few clicks of your mouse, but you can also do this over the phone or by going to a bank branch.

You will be asked for your personal details including your full name, address, date of birth and contact details. Some banks may also ask for further information about things such as your wages, job or national insurance number.

At this stage you will also be asked to provide proof of identity and address to verify your details. It is then up to the bank whether they will offer you an account.

3. Waiting game

Every bank has a different process when it comes to opening up an account. For some, you will have an account within minutes, whereas others may take several days.

One main factor to think about here is the credit check they are going to run. Always check if the bank is going to do a hard or soft credit check before submitting your application as it can be a determining factor and can affect your score.

Once you are approved and have received the details for your new account, you can begin to use it straight away. However, you will still need to wait some time to receive your bank card.

4. Making the switch

Most banks offer a switching service to assist you move all your direct debits and standing orders from one account to another. This can be great because all the work is done for you and you don’t need to worry about the hassle.

It’s important to be aware that this means everything will be switched, including your overdraft and debt repayments. For this reason, we don’t normally recommend this for our clients, instead asking them to manually switch things over to avoid any debt being transferred over.

To find out more about what debt help we can offer and for further details about the process of accessing debt help, contact us today on 0808 2234 102. Our friendly advisors will be able to support you through the process of finding a debt relief solution that best suits your needs.

Get debt help today


Related articles

Coronavirus – UK to be hit by deep recession


Coronavirus – New insurance support proposed by FCA


Coronavirus – Car insurance FAQs


Klarna teams up with ASOS for ‘Giveback Day’


Coronavirus – Car finance and payday loan support in force