Unused Bank accounts?

hillbillypete

I have a bank account from my student days that i no longer use. It is a basic bank account with an overdraft but it is just sitting there empty.

Should i close it?

I keep thinking that i should keep it in case i want to use the bank to get a mortgage, loan, etc (i've been with them for 8 years). However, i like my finances to be tidy and also think my credit rating will look better if i have fewer accounts. Not sure if this is true

Any help would be good....

dc110

Do you get basic bank accounts that have overdraft facilities?

I keep my very first account for having long term relationship with one bank but not altogether convinced it will make a difference.

Not much of an answer :rotfl:

withnell

Won't hurt your credit file to just have the account, so why not ask for the overdraft to be removed?

agsnu

I think the OP means a bog standard current account (as opposed to a "basic" account for those with poor credit ratings).

I doubt it makes too much difference either way, to be honest. By leaving it there, you have another account being managed "correctly" recorded on your file, which is a plus. However, since the overdraft contributes to your total available credit, it might mean that the overall amount you can borrow unsecured from other lenders is reduced, which is a negative. But you could ask for the overdraft to be removed.

In terms of "relationships" with existing banks, these days it rarely seems to count for owt .

dc110

I think the OP means a bog standard current account (as opposed to a "basic" account for those with poor credit ratings).

I realised that after posting but hadnt got back to edit yet

hillbillypete

Yeah, it is a current account. I have two current accounts that started off as student accounts. Both have overdrafts of £1000 but i do not use the overdraft facility. I use one account for my wage, direct debits, etc. The other is just sat there