With the recent economic downturn, more people than ever have found it difficult to pay all their debts on time.
Unfortunately, if you have a history of late or missed payments, it can be much more difficult to access financial services – and this means bank accounts, as well as borrowing money.
Most of us take a bank account for granted; trying to manage payments without access to either direct debits or card payments seems almost unthinkable.
However, there is a group of people for whom getting a bank account is not simply a formality and who face a real struggle even being provided with access to basic facilities.
You may not realise, but when you apply to open a bank account, you must first pass a credit check, just as if you were applying for a loan. This may seem like a crazy idea but in reality, most bank accounts come with a stream of optional extras, such as a debit card and overdraft. Particularly since the recession, banks are incredibly nervous about providing access to these kinds of facilities to anyone with a less than perfect record. This means it could be harder for you to open a bank account with a bad credit rating.
Unfortunately, this creates a vicious circle; without access to the ability to pay via debit card, it can be difficult to get the best deals (as many are found online), which then leaves the individual with even less money.
Some banks do offer a basic account but these are not always offered readily as they cost the banks money to operate. In addition, some banks have recently withdrawn access from other ATM machines for their basic account holders, heavily restricting the places individuals can get their cash.
Even if you are offered an account, if you have a poor credit rating, you will not be allowed to have any borrowing facilities such as an overdraft. This means it is absolutely essential that you manage your account flawlessly.
All of the above can make finding and managing a bank account exhausting, far more difficult than it should be.
There are providers that offer bank accounts especially designed for those who have a history of credit problems and who better understand the needs of the individual.
Applying for a bank account and being rejected can be hard to handle and because of the credit checks, the process can be long and time-consuming.
However, bank accounts that are designed for those with credit problems circumvent this, by scrapping the credit check and guaranteeing acceptance for everyone, providing proof of residence, age and ID can be provided.
A great example of this is the Evolution Current Account – details can be found on the Baines and Ernst website.
An Evolution Current Account offers all of the perks of a standard bank account, such as telephone and internet banking, a payment card, plus the facility to make standing orders and set up direct debits. As there are no credit checks, there are no borrowing facilities on the account. The card provided is a prepaid MasterCard, which is accepted in all the places a standard MasterCard is, unlocking the barriers which those with a less than perfect credit history may previously have found hard to break down.
Whilst there are other accounts on the market that offer a similar service, the Evolution provides an extra benefit to its customers. There is the opportunity to earn real cash rewards of up to 4% by shopping at more than 30 retailers enrolled in the scheme.
Having a credit rating which isn’t exactly spotless doesn’t mean that you should put up with extortionate charges and a less than acceptable level of service and facilities. Rather than carry on scouring the high street for banks willing to begrudgingly offer you a basic account, why not switch to a provider that understands everyone has difficulties sometimes and values your custom?