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> Non Status Bank Account - UK Guide
In a nutshell
A bank account designed for consumers that are considered to be 'non status' in credit terms.
Best Bank Account For
People with bad debt problems, people with a poor credit history and people that may have problems proving their income (i.e. the self employed or contractors, for example). A non status bank account may also suit people that don't have a bad credit history but that are classified as non-status because they are not on the electoral roll or haven't lived at the same address for a specified period of time, for example.
A non status bank account differs from other accounts simply because it will offer banking services to people that are classified as non-status in credit terms. You have to meet certain conditions to open a standard bank account in the UK and non status people often can't do this so many are unable to find an account that will accept their application.
A non status bank account makes it easier for them to find the general services that are available to the rest of the population. It may be that these services aren't all given at the same time - you may have to earn them as you go along but at least you'll be able to make a start with basic banking services.
What to look out for
The ideal non status bank account will give you those banking services that will help you manage your day to day finances. Most non status accounts will offer options such as a debit card and/or cash card and the facility to use direct debits and standing orders, for example. Some may offer products such as cheque books and overdrafts after a trial period once they have assessed how you are managing your money and some may make these products available immediately to you. In general terms you won't be given immediate access to every single banking option with a non status bank account - at least not to start with. But, the majority of banks are willing to be flexible over the medium to long term here. So, for example, you may be given a basic account with a cash/debit card to start off with. Then, after six months or so, you will be able to apply for an overdraft or another service - if you've managed your account well then the bank will usually have no problems extending your services. If all goes well you'll build up enough good credit to move to a standard account in the future. If you search around a little you may even find non status accounts that will pay you interest on your balances as an extra bonus. It is vital to try and open a non status bank account with a reputable bank that isn't going to take advantage of your status problems by charging you fees and charges for a basic bank account.
This is probably the best option for you if you have non status problems.