Does applying for an ISA effect credit rating

ps10006

Hi all,

Basically my plan is to get a mortgage in 3 or 4 years. I will need a good credit rating and a hefty deposit.

I have already got a couple grand saved in basic savings account with Natwest so i thought as i wont be touching it, it may aswell earn me sum interest. I would be putting in £250 a month also.

Are ISA's a good idea?

Will Natwest leave a footprint on my credit report?

Cheers

Hooloovoo

ps10006 wrote: »

Are ISA's a good idea?

Yes.

Will Natwest leave a footprint on my credit report?

No.

EDIT: £250 per month for 4 years, plus "a couple of grand" already saved gives you £14k + interest. You're going to have to do better than that to buy a house I'm afraid.

thenudeone

Applying for a savings account will not leave any footprint on a credit file.

ps10006

thanks for your answers. i understand your point about needing more than 14k, forgot to mention that my other half will also contribute 50/50 as she is currenly saving as i am, she refuses to change from her basic e-savings, which is one reason i asked if ISA's are a good idea.

Hooloovoo

ps10006 wrote: »

she refuses to change from her basic e-savings, which is one reason i asked if ISA's are a good idea.

Depending on if she pays tax or not, it may not make any difference.

Although ISA rates are usually higher than normal savings accounts, so even if she doesn't pay tax the ISA is still better.

Really, there's no good reason NOT to use your ISA allowance each year, even if you don't pay tax right now.

xylophone

she refuses to change from her basic e-savings,

There are e-isas.....
http://www.money.co.uk/savings-accounts/internet-savings-accounts.htm
http://www.moneysavingexpert.com/savings/best-cash-isa

ps10006

i have just applied for the e-ISA with Natwest, hassle. They say will take 10 minutes to complete online so i have done this but they now they have to send me the paperwork for me to sign and send back. And they will send me a pin and account number separately. they have registered it for online banking and are sending me them details too.

Why do i need a pin for an ISA? and why do i have to have a completely different online account for this when i already bank online is this correct?

Thanks

Reaper

I went for a Nat West e-ISA once and it was nothing but hassle. Sounds like they are still making people jump through unnecessary hoops. As they make the rules you have little choice but to go along with them.

realaledrinker

And their fixed rate ISAs are a rip off as you earn a lower rate for several weeks until the start date of the issue.