Does having 2 bank accounts make such a bad impact on your credit score?

Hairymonster

I am post bankrupt of over 6 years so has since fell off my credit file. I have been using credit builder credit cards(x2) to gradually rebuild my credit rating.

I also have 2 bank accounts; opened my basic nationwide one about 3 years ago and in the summer opened a full Barclays account so gradually my credit rating has been improving I am glad to say.

However I was speaking to someone in the financial services industry and they said you should only really have one bank account as having 2 has an adverse affect on your rating.

The nationwide one I rarely use but it does come in handy sometimes-for example currently organising a stag so was good to keep everyones money seperate from my own, also nationwide a lot closer to my work so is easier to deposit in there then transfer accross if I need to pay cash in.

I like my full Barclays account so wouldn't leave them but does having this extra basic nationwide account have a really bad effect on my rating? Obviously if it doesn I'll close it but having the 2 does have it's convenience.

grumbler

Hairymonster wrote: »

...However I was speaking to someone in the financial services industry and they said you should only really have one bank account as having 2 has an adverse affect on your rating.

Many people here have 10 and more accounts and don't have any problems with credit rating. I wonder what job this 'someone' is doing in the 'financial services industry'

I have current accounts with 7 banks and two accounts with some of them.

innovate

I second what grumbler said, and can confirm from my own experience that multiple current accounts do not damage your credit agency records.

Of course, you have to manage all of them properly.

Some banks even state on their website that you can have up to three of their current accounts.

Hope that "someone in the financial services industry" hasn't told you any other porkies.

Sharon87

I have about 5 bank accounts and I've been accepted for numerous credit cards in the past few years. So no it doesn't have an adverse effect. Unless you have huge overdrafts on them, then lenders may not be as willing to lend you more money

BugsyBrowne

I totally agree with the first two posters Tweedle Dee & Tweedle Dum.

dr_adidas01

Nope I have about 7 bank accounts. The only time it would probably effect my credit is if I had an overdraft on each of those accounts which I don't.

Lenders would see having overdrafts on all accounts as having credit available that you could use. This therefore could reduce your chances of being accepted for other credit products.

rb10

In fact, the converse is often true - it is generally seen as a good sign to have more than one well-managed bank account.

However, if your second account is a basic account, then it may not even show on a credit report anyway. Meaning that as far as other banks are concerned, you only have one bank account.

guesswho2000

rb10 wrote: »

...However, if your second account is a basic account, then it may not even show on a credit report anyway. Meaning that as far as other banks are concerned, you only have one bank account.

^This.

A basic account isn't credit scored, so has no effect. However, as long as you're not overdrawn on all of them, bouncing cheques and having payments stopped all the time, having multiple accounts doesn't matter.

I've got six at five different banks, four of which have overdraft facilities (unused) and it's never given me a problem.

Hairymonster

It does show on my credit report. I can see it on all credit files; equifax, experian and call credit but is still a basic bank account.

Ok well the general consensus is that it's not bad for my credit file so i'll keep it open

dr_adidas01

Hairymonster wrote: »

It does show on my credit report. I can see it on all credit files; equifax, experian and call credit but is still a basic bank account.

Ok well the general consensus is that it's not bad for my credit file so i'll keep it open

If its a bank account that you have had for many years even a basic one, and its reported to the CRA's keep it open. Its good on applications you make to say you have had a bank account for so many years, as it shows a little bit of financial stability.

Experian_company_representative

As others have said, as long as the accounts are kept in order it shouldn't matter how many you have. Having some longstanding relationships with lenders can be helpful to your credit score.

James Jones