Bank accounts for people with an IVA

23 March2011

One thing you may have discovered after entering into an IVA is that finding a bank account isn`t always easy. Some people take their bank account for granted, but when you have a bad credit rating it can be a struggle.

To make matters worse, your bank may not let you continue using your existing bank account if you run into serious difficulties like being made bankrupt. If this happens to you and you need to find a new account, where do you turn?

Different types of bank account

You`ll be pleased to know that there could be a number of options for people with a bad credit rating. You might struggle to get a current account with a High Street bank, but there are other types of bank account that are more easily obtainable and may be better suited to your circumstances.

Basic bank account

A basic bank account offers all the basic banking facilities - an account in which to keep your money, a means of automatically paying bills (Direct Debit and/or standing orders) and usually some kind of debit card or cashcard.

Basic bank accounts are provided by most banks and building societies, but in general they`re not widely advertised and you may have to go into a branch if you want to ask about this type of account.

Bad credit bank account

You may hear the terms `bad credit bank account`, `IVA bank account` or `bankruptcy bank account` used. They`re often advertised by financial institutions that specialise in helping people with bad credit open a bank account. Again, you`ll benefit from all the basic services a bank account provides, but little else.

Managed bank account

A number of bank account providers offer a `managed banking` service. `Managed banking` basically means that your budgeting will be taken care of by your account provider. You just have to tell them how much all your essential outgoings cost and they will put this amount aside out of your income each month, to ensure that you don`t miss anything important. There may well be a fee for this, so it`s important to understand what you`d be paying for - and whether you really need it - before you commit yourself to anything.

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Tags: iva, bank account, iva bank account, getting a bank account, iva bank, bank account for iva

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