It is very easy and extremely common for individuals to find themselves in a position where money has become a problem. If, in addition, those concerned have also been refused a bank account, it can make the practicalities of modern life somewhat of a nightmare – so what should they do? Here we take a look at some of the best solutions to financial constraints.
Around 15 per cent of bank account applications are denied for one reason or another. The first thing someone should do if they have been denied access to savings or current accounts, is to find out why.
The most common reason that banks deny access to their products is if the applicant has outstanding debts or a poor credit history. Finding out the facts is the first step towards trying to address the underlying issue and therefore back into an eligible status.
It may also help to get a credit score and report to clarify matters even further before attempting to move forward.
- A Basic Bank Account
Basic bank accounts can be very handy, because they will allow the holder to pay money in and to set up direct debits – this saves a lot of time and energy. Users can also use their basic bank account card to pay for goods in shops and withdraw money from ATMs. Facilities such as overdrafts, however are not available.
- Search for New Products
It is often the case that the large, well established high street banks simply don’t have the range of products required to help people with a poor credit history, outstanding debts or criminal convictions – there are however companies that do and so it is well worth searching for new products.
For example, ThinkMoney offer a personal account where no credit checks are performed. Accounts like these are often designed to help people manage their money more effectively and so not only can they be of help in the short term, they can facilitate getting the user back on track and in a position where more options are open to them.
- Joint Accounts
Another alternative may come in the form of a joint account. It is sometimes the case, that even if a bank denies an individual their own personal account, that individual will still be able to open a joint account with someone else – a spouse for example. The third party acts as a type of guarantor and will be named as the primary account holder who is ultimately responsible for the transactions that are made.
Having secured some kind of account that enables the individual to have their salary paid into it and to make withdrawals, it is then advisable for them to plan how their finances will work month to month. This way they can avoid further difficulties and begin to explore further options as their credit rating and report improves.