"Time with current bank" application question - implicatios

digime

I've been tempted to change my current account to a get a better deal for some time but I'm wary of the question on loan and credit card applications that asks about the length of time you've been with your current bank.

Does anyone know how important this is for assessing applications? If I change bank and then apply for a loan and so end up putting only a couple of months in that little box will I adversely affect my application?

Thanks for any advice.

zzzLazyDaisy

Keep a few quid in the old account instead of closing it. Then you can truthfully refer to that one in applications, until you build up a history with the new one.

newfoundglory

Its impossible to know how any given lender scores based on information you provide on an application - they keep their scoring methods secret so people can't easily engage in fraud.

It would of course be easy to assume that the longer you have been with the bank, the more points you will score and thus the more chance you have of being accepted for the credit facility you are applying for - some lenders might just reject the application if you have been with the bank less than 6 months or a year... other lenders might not even be bothered and probably won't even take this factor into account when assessing the application; but its impossible to say which lenders do which.

If you want to change bank, you can always go and open up another current account but keep your existing current account open - then when you come to fill out applications you can declare the bank you have been with the longest; there aren't any rules on how many current accounts you can have!

dougk_2

I agree - don't close the account you have just open another one.
when asked the question fill in the length of time you have had the original account for - you are not lying.

The questions should be worded better by the lender to get a more accurate picture - i.e. What bank does your income get paid into? How long have you held this account? How many other bank accounts do you hold?

Joe_Bloggs

I agree with all of the above.
Online banking has revolutionised how you can 'handle' your money.
Relying on one financial institution to pay your bills will get you in to trouble.
A gradual migration is the best strategy in my view rather than an immediate switch.
J_B