Understanding your options if you're turned down for a current account

If you've been turned down for a current account, it can make basic everyday payment needs difficult to handle. In this article, we'll outline the other options that may be available to you.

Understanding why you've been declined

The most common reasons people aren't offered a current account are:

• Bad credit records
• Irregular income
• Temporary addresses
• Problem with ID verification

It's important to understand why you've been declined so you can take the right steps to improve your financial situation.

If the reason you've been declined a current account is due to poor credit history, then there are some things you can do to get things back on track. Making moves to improve your credit history will mean that you're more likely to be approved for financial products in the future. Not sure where to start? This article on what affects your credit score could help you. 

Basic bank accounts

A number of banks and building societies offer basic current accounts.

Features of basic bank accounts will differ from bank to bank. A general rule of thumb is that every basic account should allow you to make withdrawals, complete transactions and keep your salary safe.

These accounts are less risky for the banks so they're able to offer them to more people. For most, you simply set up an account in a branch and use it to pay your bills.

All basic accounts come with a debit card, sometimes referred to as a "top-up" debit card where you can transfer money onto the card. This helps limit impulse purchases and accidental overspending.

Basic accounts will often also come with a cash card to withdraw funds from ATMs or in-branch.

Credit unions

This option will be open to you depending on the area you live in and/or the industry you're working in.

To find your credit union and apply, you can start with Find Your Credit Union and enter your postcode, employer and any affiliations you have.

More and more credit unions are starting to offer current accounts and if yours is one of them then, as a member you can expect the ability to set up payments and standing orders, but you won't be offered cheque-books or overdraft facilities.

What now?

Get clued up on building your credit score - there are a lot of ways you can turn things around and start building your score. These range from correcting any problems on your report to getting on the electoral roll. Read our top tips for improving your score and correcting your credit report.