If you’re looking to rent for the first time, you’re probably excited at the prospect of this new era of independence. You’ll have your own space, be able to choose who you live with (unless you’re opting for a flat share, of course) and be able to take full responsibility of your finances. With that said, it’s not an easy task to keep on top of all of your expenses – that’s why it would be wise to open up a bank account to help you with this if you’ve not got one already.
When you’re looking to start renting, it’s essential that you open a bank account – not only so that you have somewhere for your income and any benefits that you receive to be paid into, but so that you also have somewhere for your rent payments to come out of.
You’ll be able to set up Direct Debits or standing orders with a bank account to make sure your rent is always paid on time. You’ll probably have to deal with a few other regular bills, such as council tax, utilities, telephone and internet charges as well as mobile phone costs.
You can take a current account out with a bank, a building society or an alternative provider. Just be aware that if you have a poor credit rating or have been made bankrupt in the past, you may find it difficult to get a traditional current account. A basic bank account could be more suitable in this situation, as these accept people with lower credit ratings. The only downside with these types of accounts is that you can incur high charges if you go overdrawn.
Alternatively, you could opt for a budgeting account or jam-jar account as they’re sometimes known. An account like this helps you to budget your finances, which could come in handy when claiming benefits like Universal Credit. The account will be able to help you cover your rent by setting up a payment to your landlord every month, so you won’t ever forget to pay the bills.
thinkmoney Personal Account
The thinkmoney Personal Account is one such alternative you could consider. The account is a good alternative to a basic bank account as it makes managing your money that little bit simpler. It works by separating the money that you need for your regular commitments from your everyday spends – and this means that you’ll never accidentally spend any money that you need for your essentials bills.
We don’t run any credit checks on applicants – unlike traditional bank accounts – so you don’t have to worry about being rejected based on your credit history either. There are a whole host of features that come with the account including our Money Managers, SMS and Online Account Management Service and our new thinkmoney app.
The thinkmoney Personal Account comes with a monthly management fee of £17.50 (£24.50 for the joint account) and we won’t charge you for any missed or late payments. You can find out more about the account, here.