Better credit rating if I close one of my accounts and just use one???

Kay.Samuels

Is this right?

I have two accounts with Natwest a current account and a step account, at one point I did have the need to use both for various reasons but no real need for me to have two accounts now and person at the bank has said my credit rating wouldbe better if I were just using one current account rather than two, just wondered if this is correct? If it is I will close one and just keep one running.

Bank also praised me on my savings account (I am saving for a car on a tight budget and doing very well so far). :T

I am on my MS journey, paid off most of my debts, sticking to a budget, saving, etc my long term plan is to be in a position to think about getting a mortgage in say 5 years so improving my credit rating is also a long term goal.

savagej

It has been reported on here that you should close the step account once you get a current account with Natwest, as the Step Acc automatically stops the system offering credit, i.e. overdraft, loan and you will not get the purple servicecard but the blue one on both accounts.

trynsave

If you have a poor credit rating from loans, overdrafts, credit card debt etc, then I would only keep one C/A and run it faultlessly, as I understand that having an existing availability to credit may harm future applications.

However (and I'm sure there will be other, more knowledgeable folks along soon), as far as I am aware if you have a good credit rating then having more than 1 c/a won't have an adverse effect as long as they are run correctly, and that if opening more than one you leave a sensible amt of time between each as doing lots in quick succession might be detrimental.

If having more than one is a problem, I am in deep doggy doo doo as I have 8 current accounts with 4 providers and still on the look out for more. I also know that on these boards I could be seen as an amateur!

If you don't need one of the ones you have, and you have a good rating, you could consider putting a couple of dummy d/ds on it and use it to gain switching incentives from other banks. Many of us do this and it can prove to be a nice little earner. However only do it if you are sure that you can stay focused, as a continued awareness is required to ensure that you meet the necessary funding obligations if you are to avoid charges.

Kay.Samuels

Thanks for advice

I am not sure what my credit rating is like currently, but in the past I have been a bit rubbish with money (always in overdraft or over it, missing payments on bills, getting bank charges etc) so it is probably not great currently but slowly improving. Since I left my now ex partner in Nov 09 I have been picking up the pieces of my finances and being very good and organised with money.

I see that it is a handy tool having an account to use for switching incentives but I am a bit skatty at times and so find keeping my finances simple is best.

Think I might as well close the step account!

amus

If you have problems with late fee's etc you would be better keeping the step account, you cant get charged the 28.00 fee that they charge for going overdrawn on the current account (although you will still get charged for unpaid direct debits etc). As long as youre not bothered about having an overdraft that is.

Kay.Samuels

I haven't had any charges since November 09 so am not too fussed about that, and I do currently have an overdraft on the current account (but am in credit not in overdraft) which I am reducing by £25 a month to adjust to not having one. In previous years I have always been right up to the limit of my overdraft so I am pleased to see my habits improving!! :-)