Changing your bank account
Why do we ask you to change bank account?
If you’ve been asked to change your current account as part of your IVA setup, it’s because your old bank account will be at a high risk of being frozen when you enter the IVA.
Some customers do tell us they’d prefer not to change bank account because they want to remain loyal to the bank. Unfortunately, your bank may not return this loyalty – especially if you owe them money.
What are the benefits of changing bank?
- The people you owe money to can’t take any more money or freeze your account.
- With no borrowing facility, there’s no way to get further into debt.
- Your money’s easier to manage when it’s all in one place.
- It’s a fresh start for you and your finances.
It’s easy with our recommended bank, Starling
One simple way to switch your current account is to use Starling. You can quickly and easily access Starling via our Creditfix customer app. Just check your email and follow the instructions we sent you to log in.
We recommend a Starling current account to our customers because:
- You can switch online, for free, in minutes.
There are zero monthly fees to pay, and, as well as getting a traditional bank card, you can manage your money online via their simple, intuitive app. You won’t pay a monthly fee for your account, or any money for withdrawing cash or spending abroad.
- The entire switchover process is handled automatically.
No need to fiddle around with direct debits or call your existing bank. Starling can help you transition easily and manage the entire process from your phone. In fact, they guarantee a full and stress-free switch.
- They come highly recommended
Starling bank were named Best British Bank and Best Current Account at the 2019 British Bank awards – so you know your money’s in the best possible place.
- You get real-time spending alerts
So whether it’s that piping hot latte you just bought on your local high street or your monthly mortgage payment pinging out, you know exactly where your money is going (and when) with nifty notifications.
It’s as easy as one, two, three. Here’s how the Starling process works:
- Step one: Download the Starling app to your phone from Google Play or the iOS App Store.
- Step two: Follow the on-screen instructions for switching account. You just need your existing current bank account details and a form of photo ID, like your passport or photocard driving licence. To verify your account, you’ll also be asked to create a video selfie using your phone.
- Step three: Select the ‘Full Switch’ option. From there, Starling will redirect all your payments for you, close your old account and transfer any money over. You can still switch if you’re overdrawn, but the overdraft won’t transfer to Starling. They’ll do what’s called a ‘soft credit check’ – but don’t worry, this won’t hurt your credit score.
To get started, download the Starling app:
here.
Frequently asked questions.
Need more info? Here are a few of our most frequently asked questions on this topic. If you don’t see the answer you’re looking for here, give us a ring – we’d love to help.
If you’ve arranged your bank change, congratulations – you’re really close to the end of the initial set-up process! Next, you’ll set up your payment and sign your proposal documents. Then, your IVA is sent away for approval. Just get back to us to let us know – and it won’t be long until you’re all set up!
It’s really unlikely that you’ll be refused any kind of basic bank account just for having bad credit. It’s important to remember that debt is really common – in fact, in the UK alone, there are over eight million basic accounts currently open.
No – you’ll need to change to a different bank. Even if you set up a different or more basic account with your current banking provider, if you still owe money to them, they can still pursue you for it.
Usually, you’ll need some form of photo ID like a passport or a driving licence. You’ll also need a proof of address – the most common form asked for is a copy of your council tax bill or another form of utility bill. You can usually check the specific criteria by looking at your chosen bank’s website.
It depends how poor your credit score is, but if you have defaults or CCJs on your credit files, you should prepare to open a basic account instead. When banks are assessing you for their standard current accounts, they usually will run a credit check – which you’ll want to avoid if you don’t want to be hit with declines.