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Can I get a bank account if I'm going through an IVA?

If you’re on an IVA, you might find it difficult to open a bank account. But don’t lose hope, there are IVA bank accounts out there designed with you in mind.

If you're currently going through an IVA - an Individual Voluntary Arrangement - you'll be repaying whatever you can afford towards your unsecured debts for an agreed time period, which will typically be five years.

As you'll no doubt be aware, one of the main effects of an IVA will be on your credit rating, which will be affected for six years from the day your IVA begins. This means it's likely you'll have difficulty applying for any further credit during this time - and you'll probably be charged more for any credit you do get.

You could also have trouble opening a standard bank account while your IVA is running. Let's take a look at why this could be the case - and how you could find – alternatives such as banks that accept IVA customers, that can actually help you keep on top of your costs while you're on an IVA.

Opening a bank account with an IVA

If you're looking to open a 'standard' bank account, the majority of account providers will run a credit check on you before your application is accepted.

Banks, building societies and other financial institutions use your credit history to check on how you've managed your finances in the past, helping them decide how reliable a customer you're likely to be when it comes to repaying any credit.

So if you’re on an IVA, bank account providers may consider you too much of a 'risk' to take on as a customer.

If your application for a current account has been turned down because you've failed a credit check, there are banks that accept IVA customers which could help you.

The thinkmoney Current Account

Here at thinkmoney, we understand how important it is to find an account that will help you manage your money - and if you're on an IVA, it's even more important to make sure all your monthly bills are covered and you avoid overspending from month to month.

That's why we offer our Current Account – a basic account which helps you manage your money.

The thinkmoney Current Account is an ideal IVA bank account. We won’t run a credit check, so whatever your credit history is, you’re welcome here. As long as you're over 18 and you live in the UK, you can bank with us.

With the thinkmoney Current Account, you can make and receive payments, set up Direct Debits and standing orders, and manage your account online or by SMS, so you can stay on top of your money around the clock.

The thinkmoney Current Account: the perfect IVA bank account

Our built-in budgeting system will divide your money up into two separate accounts - one for your essential bills and one for your spare cash - so you won't be able to accidentally spend the money you need for your bills or your IVA repayments.

Your account also comes with a dedicated team of Money Managers looking after your money. They’ll make sure your bills get paid and they’re here to help with any questions you have along the way.

There is a monthly management fee of £17.50 (£24.50 for a joint account). That's it - no unexpected charges for rejected or missed payments. We’re proud to be one of the banks that accept IVA customers to help you get back on track.

Apply for your account today. Start by filling in our quick online application form.

You can get a thinkmoney Current Account if you’re over 18 and a UK resident – it’s as simple as that. It doesn’t matter if you’ve had bad credit in the past or you have no credit history as we don’t carry out a credit check when you apply for your account. All we need to do is verify that you are who you say you are and you can open an account online.

The Financial Conduct Authority requires us to publish information about our personal current accounts. For more information about this click here.

We have designed the Current Account Switch Service to let you switch your current account from one bank or building society to another in a simple, reliable and stress-free way. It will only take seven working days. As your new current-account provider we offer the following guarantee.

  • The service is free to use and you can choose and agree your switch date with us.
  • We will take care of moving all your payments going out (for example, your Direct Debits and standing orders) and those coming in (for example, your salary).
  • If you have money in your old account, we will transfer it to your new account on your switch date.
  • We will arrange for payments accidentally made to your old account to be automatically redirected to your new account. We will also contact the sender and give them your new account details.
  • If there are any issues in making the switch, we will contact you before your switch date.
  • If anything goes wrong with the switch, as soon as we are told, we will refund any interest (paid or lost) and charges made on either your old or new current accounts as a result of this failure.

For more information read more at www.currentaccountswitch.co.uk

You can apply for the credit facility three months after you’ve paid your first income into your thinkmoney Current Account. This means you could access a credit facility up to £400. We’ll need to carry out some affordability checks and then you’ll be able to apply for and access the credit facility through Online Account Management, subject to eligibility.

The money you hold in your thinkmoney Current Account is not protected under the Financial Services Compensation Scheme (FSCS). As thinkmoney is authorised and regulated by the FCA as an e-Money Institution, your money is protected and, unlike the FSCS, this protection is not limited to a certain amount. This means that your money is held separately and securely and, if something were to happen to thinkmoney, you would always receive it back.

Yes, there is an option in the online form to open a joint account. Joint accounts cost £24.50 per month.

For more information on how we will use your personal information when you have an account with us, you can read our 'How we use your personal information' leaflet. For more detailed information you can also read our Privacy Policy.

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