Affect of opening a new bank account on credit score

toddy111
toddy111 Posts: 14 Forumite
Combo Breaker First Anniversary
in Budgeting & bank accounts
Hi all!

I'm a first time MSE poster, long time reader, so firstly thanks to everyone for your contributions to this excellent forum!

I've heard that changing bank account can either affect your credit score or decrease your chances of getting a mortgage.

I've had the same account for about 10 years and I'm looking to move accounts to one with a better rate... I will also soon be in the market for a house (maybe in about 1.5 years time). I was wondering if anyone could tell me if switching 2 accounts to a different bank 1-2 years before a mortgage application could in any way affect that mortgage application (be it by directly impacting a credit score or by creating an image of instability to the bank).

I may be being too cautious here. Perhaps it would only impact the application if I changed banks 4 times in a year. If that's the case, please let me know!

Thanks in advance :)

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Keep the account with the 10 year history, as it will show the mortgage provider some stability.

    By all means open up another current account or two for switching incentives and/or high interest...but stop opening new current accounts 6-9 months before the mortgage application.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Why are you worried about the score?
    No one sees it but you - lenders don't.
  • toddy111
    toddy111 Posts: 14 Forumite
    Combo Breaker First Anniversary
    YorkshireBoy wrote: »
    Keep the account with the 10 year history, as it will show the mortgage provider some stability.

    By all means open up another current account or two for switching incentives and/or high interest...but stop opening new current accounts 6-9 months before the mortgage application.

    Thanks for your reply YorkshireBoy. My thinking is that I wouldn't get switching benefits if i dont actually switch and close my account. Am I mistaken?
  • toddy111
    toddy111 Posts: 14 Forumite
    Combo Breaker First Anniversary
    !!! wrote: »
    Why are you worried about the score?
    No one sees it but you - lenders don't.

    I should probably have said 'the bank's view of me' rather than credit score...
  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
    First Anniversary First Post
    toddy111 wrote: »
    Thanks for your reply YorkshireBoy. My thinking is that I wouldn't get switching benefits if i dont actually switch and close my account. Am I mistaken?

    You don't get switching benefits if you don't fully close your existing account, no.

    But, of course, you don't need to switch your 'main' account.
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