FAQ bank accounts for bad credit
Here is a selection of some of the most frequently asked questions about bad credit bank accounts (sometimes referred to as bank account for bad credit).
Why don't you perform credit checks?
One reason we don't need to perform credit checks is because there is no credit facility (overdraft or credit card) with our bank accounts. Another reason is that we can check your identity in a way that doesn't need a credit check.
You will have to prove your UK residency status and your age (as the account is only open to people age 18 or over).
If you're aged 18 or over and a UK resident then you can apply for a thinkbanking account today!
What do the Money Managers do?
Our Money Managers are responsible for the budgeting service that comes with our bad credit bank accounts. They will set aside part of your income for your bills and arrange the payments on your behalf. It's a bit like having a helping-hand to arrange your bill payments every month!
The Money Managers will ask you about your income and expenditure and are the people you need to tell about any essential bills. Once they have that information, they can work out an accurate personal budget for you.
You can also call them to find out what's happening with your account, get a balance update, arrange a Direct Debit or ask about anything to do with your account. You can call on weekdays, weekday evenings and Saturdays.
In a way, the Money Managers are what makes the account so special, because they help our customers to budget better by planning ahead for bills and help to avoid missed payments in future.
Why do I have two accounts?
Some people like to have two bank accounts because they set aside money for their essential bills into a separate account. This is precisely what we do on your behalf!
We like to keep things simple, and having one dedicated account for bills, and another one for spending money, is straightforward and practical. It also means you shouldn't accidentally spend money needed to cover essentials, because that money is put somewhere safe for your bills.
What do I get for the fee I pay?
The initial setup fee allows us to open the account and run the necessary proof of identity checks. The monthly fee covers the cost of running the account - including organising your budget, transferring money between the two accounts and the Money Manager service as well as other costs.
Additional facilities include the SMS balance update service and online banking. Both are available 24 hours a day and are another way to keep right up-to-date with your balance at all times. That way, you'll know whether you have enough money in your account to spend on that something you had your eye on!
Consider whether you would save money by paying one regular monthly fee without additional charges, or by paying your current bank account charges. We charge a set-up fee of £25, then £14.50 per month (£30 then £21.25 for joint accounts).
When you consider that you could open this account even with a history of CCJs, defaults, missed payments or even a history of bankruptcy on your credit file and you will still get the service provided by our Money Managers, you may decide the fee is worthwhile.