Can I get a bank account if I'm going through an IVA?
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 successfully apply for.
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 an alternative 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.
As we mentioned earlier, entering an IVA will affect your credit rating for six years from the day it's agreed - and as a result, 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 is an alternative that could help you.
The thinkmoney Personal 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 Personal Account - a real alternative to IVA bank accounts.
Basically, our account is not a bank account and doesn't require a credit check, so whatever shape your credit history is in, you should be able to apply for an account with us - as long as you're 18 years or over and a UK resident.
With our account, you'll be able to 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 finances around the clock.
The thinkmoney Personal Account: ideal for an IVA
However, the thinkmoney Personal Account goes one step further to help our customers manage their money. 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.
Our account also comes with a dedicated Money Manager service, which means you'll have someone making sure your bills get paid - and an expert point of contact to provide advice & guidance and answer any questions you have about your finances along the way.
There is a monthly management fee of just £17.50 (£24.50 for a joint account). That's it - no unexpected charges for rejected or missed payments.
You can apply for an account today. Start by filling in the form on this page, or clicking here to start your online application.