Opening New Bank Accounts And credit ratings

2fast4you

I sometimes Open bank accounts purely to get the incetive cash given from the bank account.

Im aware that some banks peform a credit check is this most of time does anyone know ?

Also If a credit check is performed and then a few months down the line I close the bank account does this reset my credit rating to where it was prior to the bank accont opened.

My main point is to find out Im I doing damage to my credit rating if I keep Opening accounts ( however remember im also closing them so my thinking is that Im balancing them back if closing after ?)

thanks

LeeSouthEast

It won't reset. You'll still have the 'search' recorded on your file, but these will have a diminishing effect over the months. Providing you're not doing it every month, I'd not worry unduly.

2fast4you

Im talking maybe doing it every approx 3-6 months
Would you say most bank accounts perform a credit check when opening a bank account ?
thanks for your help

LeeSouthEast

Current accounts will do. Savings accounts won't (beyond a fraud/ID check, and these are not hard searches).

Premier_2

I think it all depends.

I would suspect any bank account that could possibly leave you in an overdraft position (authorised or unauthorised) may well seek a credit history check.

However, if you already have a current account with the bank they may not as they should already have their own history on you. (assuming you are not attempting to specifically get a loan)

The issue is that what is held on you is a credit history file, which as the name suggests only usually records credit history (and a few other things like addresses). But it also records every time someone access that history.

If the accounts you are opening do not involve loans, then there is no reason for the banks to go back to them once searched (but the initial search leaves the footprint), even if you then close the account.

This could be an issue, depending on your overall credit history, because a suspicious creditor may assume with regular checks from the likes of banks that you are attempting to get a loan, but are unable to obtain one, hence the frequent searches by differing banks.

A credit history search can only be performed if you agree to it (which may be implied by you agreeing to request an approval for a new bank account). If in doubt, you could always ask the bank if they propose to do a credit check regarding your application.