Any benefits from having a credit card and current account with the same bank?

TheEffect

I'm with Lloyds TSB and happy with my current account with them, however they wont give me a credit card, being 18 and limited information on my credit report.

BarclayCard have given me an initial card. Would it be worth switching my current account to Barclays and just having both my current account and credit card with the same company? Or should I keep them seperate?

Thanks

CLAPTON

No real difference.. I wouldn't change my current account in these circumstances. In any case you will probably want to get a better CC in due course.

Do set up a DD to pay the barcalycard in full each month so you never forget to pay (and damage your credit rating) or pay interest.

Paul_Herring

Any benefits from having a credit card and current account with the same bank?

There's one to the bank - if you fall behind in payments on your credit card, they can help themselves to the money in your current account. (Right of offset.)

There's no advantage to you in having both with the same company.

I'd keep both current accounts - for example, use one for DD's/SO's that will be guaranteed to be funded enough to pay your bills (including your credit card, whichever bank it's with,) and the other for day/day spending.

PlutoinCapricorn

As "free banking" may come to an end, charges for using your current account may come into force, unless you have other 'services' with the same bank. A savings account or a credit card in addition to the current account might help here.

Paul_Herring

As "free banking" may come to an end,

ITYM "fees free banking." When the bank starts giving me in-credit interest to match what they're charging on their loans will be when I consider to have 'free banking.'

And it's unlikely to come to an end - all it needs is for one bank to hold out on transaction fees etc for them to get a sudden increase in customers.

EarthBoy

There's no financial advantage to having both your current account and credit card with the same bank, but at least you would probably be able to see both accounts on the same screen if you use internet banking. This could be a slight advantage of convenience.