Credit rating and current accounts

stain3565

Does anybody know if having several current accounts can affect your credit rating? I have opened up 2 new ones for their regular savings sister accounts and am looking at opening another.

Dagobert

Hello,
As far as I understand it is the number of credit searches in a certain space of time which effect your credit score. Somewhere in this forum I was told that the credit search does not actually display your credit record but only returns the score. From that I conclude that the institution initiating the search will not see which products you have signed up to.

I'd be interested to know myself whether this is actually the case.

Yesterday, I went through the Barclays c/a online application process to check what information they were requesting. They want to know the number of debit/Switch cards. I have several current accounts with debit cards; I was hesitant to key in the actual number as they would be able to conclude from this how many current accounts I have. I wonder would they be able to find out how many debit cards an applicant has?

stain3565, which regular savers do you have/would you like to sign up for?

mjanet

I was wondering this myself as I have been so ignorant in the past , same bank account since leaving school until I came accross this web site .I was V happy with my bank as I never pay them a penny in charges on my current account or credit card.Then I started reading how you can make money by using a cash back card , opening accounts etc so of course I started .The past few days I have been thinking can I do my credit score harm by the number of searches.I have opened accounts with A&L and just applied for the Barclays one and in the next month I want to apply for another no penalties spending abroad card .My questions are .. How many current accounts are you allowed ? how long should you wait in between opening different cards / accounts ? As soon as you get what ever incentive made you open the account is it ok to then close it straight away or should you wait a few months / year.What period of time does a search show with a credit referancy ? I hope I have posted the questions in the right place if not please advise me or better still send me a map of MSE cos I keep getting completely lost in here lol

YorkshireBoy

mjanet wrote:

How many current accounts are you allowed ?

Allowed by whom? As far as I know there is no 'maximum'.

how long should you wait in between opening different cards / accounts ?

I would say one application a month would be OK as far as searches go. If you make two applications for credit cards in one month, you might be better leaving a 2-3 month gap until your next application.

As soon as you get what ever incentive made you open the account is it ok to then close it straight away or should you wait a few months / year.

I close accounts as soon as I no longer benefit from them, with no regard to timescale.

What period of time does a search show with a credit referancy ?

As a rule, credit searches remain on your file for 12 months - although lenders are generally more 'interested' in searches made in the last 3 months.

exel1966

I've opened 3 new current accounts including the Barclays £100 Incentive offer,two savings accounts, an ISA and had 3 utility searches in the past 3 months and have had no problems.

Having said that, I know my credit rating is very high, but will now ease off for a while just in case.

Dagobert

mjanet wrote:

How many current accounts are you allowed

As many as you like! I don't think the bank can tell how many current accounts you have. However, I would not give false information when filling in a form.
But each current account application will cause a credit search (with the CRA they are using).

Yesterday, I opened another current account. The lady did not even bat an eye-lid when I said I had 5 current accounts.

mjanet

Thank you everyone for answering my questions it's very much appreciated .
I told you I was naive / a learner I think my question ' how many accounts can you have ' proved that lol as I thought you could only have 2 maximum lol .

Just thought of another question I hope you don't mind......... but just say for eg I wait until I get the £100 from the barclay account then close it then 18 months away they have another offer would they refuse your application because of what they know you are doing ? I think what I'm getting at is if you open various accounts get the incentive then close it then won't eventually you will have stopped all your options being open to you should you have problems with your present account ?

Dagobert

mjanet wrote:

if you open various accounts get the incentive then close it then won't eventually you will have stopped all your options being open to you

There is something to be said for keeping accounts open. For instance, that particular bank might offer a savings product at some point which is only available to existing current account holders.

However, if the account requires regular funding, bear in mind that moving money around, does cost you interest! See BACS Transfers.

YorkshireBoy

Dagobert wrote:

There is something to be said for keeping accounts open. For instance, that particular bank might offer a savings product at some point which is only available to existing current account holders.

There is a lot more to be said for closing them (once you've had your incentive), as most of the best offers are for "brand new customers only", eg Barclays and their £100 incentive.

mjanet

Then what would your answer be yorkshire boy re doesn't that limit your choice eventually if you kep closing them ? or am I taking it right that you mean eventually then yes they will let you open one with them again after a certain amount of time has passed ?

YorkshireBoy

mjanet wrote:

Then what would your answer be yorkshire boy re doesn't that limit your choice eventually if you kep closing them ? or am I taking it right that you mean eventually then yes they will let you open one with them again after a certain amount of time has passed ?

I'm probably the wrong person to ask (and I'm going to be severely reprimanded by other MSE's for this), because I've had my (only) current account for over 26 years!! [Retreats for cover]

My post above was just an opinion, and we only applied for the Barclays accounts because a £200 return on £1,000 in 3 months time (and no need to move salaries & DD's etc) was too good an opportunity to miss.