Good idea to Close Unused Current Accounts???

brookerbabyisababy

I have a unused HSBC account, what I wanted to know was is it a good idea to close it since I don't use it. Will closing it improve my credit score or possibly decrease it from what I have heard?:money:

Cranston_2

I don't think it will make any difference to your credit score.

I would keep the account open as you never know when you might need it.

Fishingtime

And by keeping it open costs the bank money :T

oldwiring

:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

yoxford2008 wrote: »

And by keeping it open costs the bank money :T

:rolleyes::rolleyes::rolleyes::rolleyes:

benjus

I still have an old NatWest current account sitting around with a couple of thousand in overdraft facility. Comes in useful from time to time, e.g. when my Nationwide card got swallowed by an ATM and I needed some cash. I also occasionally pay cheques into it then transfer the money online if there isn't a convenient Nationwide branch.

exel1966

brookerbabyisababy wrote: »

I have a unused HSBC account, what I wanted to know was is it a good idea to close it since I don't use it. Will closing it improve my credit score or possibly decrease it from what I have heard?:money:

Firstly is your HSBC account actually reported to the CRA's ? Not all accounts are, it will depend on when you opened it. If it is it will almost certainley be marked as 'Dormant' if it's not been used for a while.

Secondly, you can have as many current accounts as you like and they'll have no bearing on your credit score unless you have an overdraft facility attached to it. Current accounts are not 'credit' accounts.

Assuming no overdraft it will have no effect on your credit score either way whether you choose to leave it dormant or close it. Personally I can't see the point of leaving it open If you're never going to use it though.

Idiophreak

These days, (I know it sound paranoid) you have to be quite careful of identity theft, card cloning etc...so having spending capacity sat around in your name probably isn't a great idea if you can avoid it, quite aside from any impact on credit scoring...

jamesd

If there's an overdraft facility that will increase your available credit and decrease the amount that others will be willing to offer you. You might consider asking for the facility to be reduced if you want to keep the account.

wizard5353

A backup current account could come in handy at a later date as a parachute account if you fall foul with your current bank though charges. If you fall in to debt or your credit rating is damaged through identity theft you might find it very hard to get a current/basic account quickly when you really really need it!

If there is an overdraft on it then this will effect your rating and I would get that taken off the account is you don't use it.

exel1966

yoxford2008 wrote: »

And by keeping it open costs the bank money :T

And who in the longrun has to pay for that ? Yes, the customers !! :rolleyes:

john_s_2

My wife and I decided to close a joint account we no longer used, but after queuing up to see the Personal Banker I was told that my wife needed to be with me as we both needed to say we wanted it closed.

So we left it open. Then a few years later my wife got fed up with her bank so I suggested she just used the dormant joint account instead (which is with a different bank, obviously!)

Although I technically have access to this account I don't touch it - my wife trusts me, LOL. I guess I can ask the bank to take me off it if we really wanted to.

So as mentioned above, you never know when you might need it so you might as well keep it. Make sure you keep everything up to date on it though - PIN numbers, cards, addresses (especially addresses!)