Credit reports- Energy accounts and current accounts

chetss

Hi All,

I have recently switched my energy account and opened a new current account- How does this impact my credit score with lenders in general? (I know each lender has a different scoring criterion)

But intuitively if the overdraft on current account is minimal (500), the impact on the score should also be very minor from both these accounts?

TadleyBaggie

Do energy accounts show up on credit reports, mine never had?

pingles

We had british gas supplying our old flat and that showed, scottishpower at our new place doesn't iirc.

zerog

pingles wrote: »

We had british gas supplying our old flat and that showed, scottishpower at our new place doesn't iirc.

Only BG reports to CRAs AFAIK.

Opening a current account may show up as a credit search especially if you got an overdraft.

I'm still not clear on whether opening a BG account causes a reportable credit search to be made.

Nobody knows the impact of overdrafts for sure, but could be negative if you have a large limit (and low salary), medium sized unused overdrafts are probably a good thing

chetss

Yes - British Gas it is. Together with my new current account, this has lowered my credit profile and soft search now shows that I cannot get a prime credit card anymore.


Cant believe I will have to wait 6 months because of an energy and a current account?

Should'nt they (lenders) do a credit limit based weighted average to calculate average age impact on credit accounts? i.e. recent accounts with low credit limits should not impact that much, while recent credit cards with a decent limit should impact more.

Anthorn

chetss wrote: »

i.e. recent accounts with low credit limits should not impact that much, while recent credit cards with a decent limit should impact more.

On the one hand it's related to the age of accounts: Say for example you have a bank account showing all green on your CRA file for the whole six years. You replace it with a new bank account. When the old bank account comes off your CRA file you will be left with a bank account which has only been running for a short time. That will impact your CRA file because your credit history is reduced.

On the other hand it's related to income: It could be seen that you have maxed your credit in which case reducing your overall credit usually by cancelling accounts you don't use (very much) will have a positive impact.

droiderm

zerog wrote: »

Only BG reports to CRAs AFAIK.

Opening a current account may show up as a credit search especially if you got an overdraft.

I'm still not clear on whether opening a BG account causes a reportable credit search to be made.

Nobody knows the impact of overdrafts for sure, but could be negative if you have a large limit (and low salary), medium sized unused overdrafts are probably a good thing

Eon report to equifax too.