Changing your bank account

Changing your bank account is a really important part of the application process and your case will not be able to progress until you switch your current account. That’s why, if we’ve asked you to change bank account, we recommend you do so as quickly as possible.

Changing your bank sounds like a huge hassle – but given the range of quick, easy to set up and free banking options out there, it really couldn’t be simpler.

Why do we ask you to change bank account?

If you’ve been asked to change your current account as part of the setup of your arrangement, it’s because your old bank account will be at a high risk of being frozen when you begin your repayment plan.

Some customers do tell us they’d prefer not to change bank account because they want to remain loyal to the bank. Unfortunately, your bank may not return this loyalty – especially if you owe them money.

What are the benefits of changing bank?

• The people you owe money to can’t take any more money or freeze your account
• With no borrowing facility, there’s no way to get further into debt
• Your money’s easier to manage when it’s all in one place
• It’s a fresh start for you and your finances.

Remember: if you already hold a bank account or owe money to a bank, you won’t be able to open a new bank account with them. Your new account MUST be with a different bank to the one you currently bank with.

What to look for in a basic account

It’s rare for a bank to refuse you a basic account, but there are a few criteria you’ll need to be aware of when you’re starting out with a new bank.

Keep it basic: We’d recommend you open the most basic current account possible. This means you won’t have to pass the credit check you usually need to pass to open a current account.

No overdraft facility: Most basic accounts won’t offer an overdraft facility; some will offer a small financial buffer. It’s best that for the duration of your arrangement, you don’t get further into debt or get further overdrawn.

Avoid credit cards: While you won’t be able to use credit on a basic account, it also means there’s no risk of getting into debt. Most do come with a direct debit facility, as well as the ability to withdraw cash from an ATM.