Changing banks

jenniet_2

Hello,
I am thinking of changing banks. I have been with HSBC for around 10 years, I have all my bills and any loans coming out by direct debit. But other banks offer much better deals on savings and current accounts, plus after moving, my new local bank staff are not very helpful at all.

I was wondering if opening a new bank account with another bank affects credit ratings? Or negetivly impacts in anyway? Would it be ok to close the old account and open another, or would this be a bad idea? I have googled this and looked through old posts on here, but I seem to find conflicting information. Some people say it does affect credit and to keep the old account and to set up a standing order to cover bills etc, (which seems rather over complicated) while others say it makes no difference.

Any advice anyone can offer would be most appreciated!
Many thanks!

456789

It shouldn't affect your credit rating - but the amount of overdraft listed on your report might change if you have one

I would downgrade the HSBC account to one that doesn't need minimum monthly funding and keep it as a spare

Then switch to someone like First Direct who offer an incentive for joining if you meet the requirements

jenniet_2

Thank you very much for your help!

456789

see: http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#best

cash-magnet

I have many current accounts but am very specific that I do not want any credit or overdraft facilities on them when they are opened. This avoids a lot of problems with your credit report plus you don't have facilities to over-spend in the first place.

In my experience having many accounts carrying positive balances has not been an issue with any financial business I have dealt with.