Changing your bank account
Changing your bank account is a really important part of the application process and your case will not be able to progress until you switch your current account. That’s why, if we’ve asked you to change bank account, we recommend you do so as quickly as possible.
Changing your bank sounds like a huge hassle – but given the range of quick, easy to set up and free banking options out there, it really couldn’t be simpler.
Why do we ask you to change bank account?
If you’ve been asked to change your current account as part of the setup of your arrangement, it’s because your old bank account will be at a high risk of being frozen when you begin your repayment plan.
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.
Switching to Starling bank in four steps
- Step one: Visit the Starling website here to find out more about their current account.
- Step two: Download the Starling app to your phone from Google Play or the iOS App Store.
- Step three: Follow the on-screen instructions for switching accounts. 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.
To get started, visit the Starling website here.
Our second choice: Monzo
The beauty of a Monzo current account is that, like a Starling account, you can set it up from your smartphone in a matter of minutes. Here are a few more reasons to check them out for your current account switch:
- They use the Current Account Switch Guarantee – So it will take less than 7 days to switch, and everything’s managed for you.
- You can open an account in minutes – You’ll just need your smartphone and some ID to get started.
- Get a heads-up on payments – So if one of your direct debits has changed, Monzo will let you know with a notification.
You can find out more about a Monzo basic account and apply here.
Other banking providers are available…
If you don’t feel Starling or Monzo are the right fit for you, don’t worry – there are still loads of other options. Use our simple comparison table to work out which bank account will be the best fit for your needs and find out more via the below links.
Remember: if you already hold a bank account or owe money to any of these banks, you won’t be able to open a new bank account with them. Your new account MUST be with a different bank to the one you currently bank with.
What to look for in a basic account
It’s rare for a bank to refuse you a basic account, but there are a few criteria you’ll need to be aware of when you’re starting out with a new bank.
- Keep it basic: We’d recommend you open the most basic current account possible. This means you won’t have to pass the credit check you usually need to pass to open a current account.
- No overdraft facility: Most basic accounts won’t offer an overdraft facility; some will offer a small financial buffer. It’s best that for the duration of your arrangement, you don’t get further into debt or get further overdrawn.
- Avoid credit cards: While you won’t be able to use credit on a basic account, it also means there’s no risk of getting into debt. Most do come with a direct debit facility, as well as the ability to withdraw cash from an ATM.
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.