Applying for a new current account

Posted by Rebecca Stains in Banking on 19 August 2015 - Rebecca worked as a Credit Analyst at checkmyfile until 2015

It can be daunting choosing a new current account, especially with so many products available. It is easy to forget that a current account something most people use every single day, therefore it is important to choose one that best suits you and your needs.

Opening a new account is a process that requires time and research. Here are some simple steps to follow to ensure you get the best deal that is right for you.

The first steps taken should always involve researching the current accounts that are available to you. Asking family and friends about their current providers is a good place to start, alternatively online reviews and surveys can offer you with an insight into people’s personal experiences – both positive and negative. When researching the accounts you are considering, its best to avoid making your decision based on introductory offers or promotions, in the long run you may find the overall service to be terrible.

How you manage your current account may also affect your decision. You may wish to research the online banking features offered, or the local branches close to you, depending on your preferred approach to communication and the method of maintaining your account.

Secondly, you should consider what type of account you are going to pick. Standard current accounts usually offer a debit card, overdraft and cheque book, but this is always worth double checking before making the application. The majority of current accounts are free but there are a few that incur and monthly or annual fee. These types of accounts tend to offer more services such as better interest rates and insurance perks. So how should you decide which is best for you? It’s advisable to look closely at your own spending habits to determine the suitable option.

When deciding to switch to a new current account, you should ask yourself the question: Am I happy with my current bank? Most of the better deals are unfortunately offered to new customers, so if you are happy with your existing bank you may wish to stay put. This should avoid disappointment further down the line when the introductory deals have ended. It may not be worth the £100 reward for joining or the temporarily low interest rates.

When making a credit application, this includes current account applications so you will be subject to a credit check. This is to ensure you meet their lending criteria before being accepted. With this in mind you may want to check your credit report before submitting your application and if you have bad credit, you are more likely to be accepted for basic bank account rather than those offering great deals.

The final decision you need to make involves your old account and whether or not it’s best to close this down. If you have chosen to switch your account this is not something to worry about, the switching process now only takes 7 days, and your old account will then be closed. If you decide to keep your old account, for example if you need more than one current account or it is a joint agreement, it is important to ensure your direct debits are coming out of the right account to avoid any missed payments. You can always speak to the new provider about transferring any regular payments.

Applying for a New Account? Check Your Credit Score

30 Day Free Trial

How does an overdraft affect your Credit Report?

An overdraft can either be a financial lifeline, or something of a millstone. Which side of that fence you fall probably depends on how much of that usage is pre-planned.

Published on 5 Jul 2019 by Andrew Brown

Full Article

A Cautionary Tale About Switching Banks

Switching current account providers is incredibly easy these days – and I can vouch for that from recent personal experience. But experiencing the process first hand has also served as a reminder that it’s not completely flawless and that if you don’t pay attention, your Credit Rating could take a hit – even if it’s a temporary one.

Published on 19 Dec 2018 by Richard Catlin

Full Article

Your Credit Rating Vs A Country's: What's The Difference?

Professor Edward Altman first published the Altman Z-score formula in 1968 to evaluate the likelihood of a businesses going bust within two years. The legacy of this system lives on, with the fundamental basics of his score helping to shape the Credit Scoring systems we use today - whether that’s a simple application for car finance or assessing the economic strength of an entire nation.

Published on 13 Dec 2018 by Beth Jennings

Full Article

Final PPI claim deadline pushed back even further

Let’s be honest, we almost all know someone who has claimed for PPI. You may have even done it yourself. If you aren’t aware of anyone you know claiming for PPI, you would still know of its existence, as the adverts for claims firms seem to populate every TV channel and radio station with advertising space.

Published on 4 Jan 2017 by Ben Tumilty

Full Article

Banks not going far enough to combat fraud

Banks have been warned that they must start to do more to tackle scams where people are tricked into transferring money to a fraudster’s account. The Payment Systems Regulator (PSR) has stated this in a response to a “super complaint” lodged by the consumer group Which? but the Regulator did stop short of suggesting that the banks should compensate customers who had lost out.

Published on 21 Dec 2016 by Erika Bone

Full Article

Lloyds Acquire MBNA in £1.9bn Deal

Signalling a return to strength and in the organisation’s first acquisition since the 2008 global financial crisis when they purchased HBOS, Lloyds Bank is to buy credit card firm MBNA from Bank of America in a £1.9bn deal.

Published on 20 Dec 2016 by Tom Magor

Full Article

Mortgages through your mobile

Mobile bank provider Atom are launching the UK’s first mobile mortgage app. Applications for a mortgage often involve mountains of paperwork and Atom’s mortgage app is designed at reducing the volume of paperwork that applicants have to gather when applying for a mortgage.

Published on 8 Dec 2016 by Ben Ryland

Full Article

Compensation Scheme Limit Increases Due to Financial Uncertainty

The compensation limit for consumers who would lose out financially in the event of their bank collapsing has been increased back up to £85,000, which is where it was in July 2015.

Published on 23 Nov 2016 by Kevin Pearce

Full Article

Further Job cuts and Branch closures at Lloyds

The Lloyds Banking Groups is set to cut a further 665 jobs and close a further 49 branches as part of its continuing drive to cut costs.

Published on 14 Nov 2016 by Neil Greenhill

Full Article

Payday Loan Industry Contracts as Watchdog Bites

In the wake of a crackdown from the Financial Conduct Authority (FCA), the payday lending industry has drastically contracted, represented by a near 70% reduction in overall lending. To draw upon Russell Hamblin-Boone of the Consumer Finance Association, a mere 1.8m short term loans were issued over the course of 2015, compared to 10m in 2012.

Published on 9 Nov 2016 by Tom Magor

Full Article
keyboard_arrow_left

keyboard_arrow_right

We are rated number 1 for customer service on