Piggybanking has had a negative effect on my credit score!

PurpleSummer

Over the past few months I have organised my finances and to do so I have opened a few new accounts with Natwest, (only one of which with a small overdraft) alongside my current account which I have held with them for over a year now.

The interest free period on my credit card has now expired so I requested a new one be opened at 0% during my last customer review at the bank. I have recieved a letter to say that my request had been declined! I have never had problems with my credit before. I've had credit cards, phone contracts and a personal loan, never any late payments and I now owe less than £500 in total.

Getting a bit concerned I did an Experian Credit report. Apparently there are two negative factors affecting my credit rating.

• You have recently opened 1 or more new credit accounts.
• The age of your accounts indicates lenders are likely to view you as higher risk

This has given me a rating of 891

What can I do?

Agricolae

1. What new accounts have you opened with Natwest?

2. If you add up the total credit limits of all your credit cards and accounts with overdraft facilities, what do you get?

On a general note, opening several accounts in quick succession can appear "dodgy" because it could be a sign of fraud.

There isn't much you can do about that except wait.

dr_adidas01

For a start you can ignore the score of 891 as that means nothing at all its a number made up to sell you a score that isn't relevant to lenders in the slightest.

How long you have had your accounts maybe a factor in a lenders decision as they look for financial stability and the length of time accounts have been open and how they have been used. Also not being on the electoral roll can have an effect.

Have you applied for a lot of credit products in one go recently as a lot of credit searches in a short space of time can make you look desperate to lenders and also effect your credit file.

Also Experian aren't the only CRA have you checked your Equifax report as there maybe something on that one your not aware off.

PurpleSummer

I have opened an esavings, a savings with a card and two new current accounts... I really didn't think about the knock on effect, only that I would be able to manage my money better.

I have one credit card with a limit of £1750 plus two £500 overdrafts, so only £2750 in total. I didn't ask for that much on my credit card.

In the last 6 months I have only had 3 credit searches, all of which have been Natwest. One for a current account with no overdraft, one for an account with £500 overdraft and the last one for the credit card.

I will check Equifax now.

innovate

It's more likely that it has nothing at all to do with your CRA files - - it's just NatWest who probably think you have enough accounts now.

Based on what you said, and unless you recently moved house and are not on the ER at your current address, I reckon you would probably get accepted elsewhere.

But why do you want all those extra accounts? I would understand if you were chasing bonuses and/or good interest rates - - but all your applications appear to have been at NatWest who offer none of these benefits?

PurpleSummer

innovate wrote: »

But why do you want all those extra accounts? I would understand if you were chasing bonuses and/or good interest rates - - but all your applications appear to have been at NatWest who offer none of these benefits?

The accounts I have are for the following purposes:

1. My original current account - my wages go into and standing order out of.
2. An account that I use for household bills - which my partner matches what I put into.
3. Petrol money, so i don't run out through the month.
4. A savings account which has a standing order going into monthly for MOT and insurance (cheaper to pay for annually)
5. An account which holds some of my partners money seperately so I have access to it as he works abroad at the moment.
6. My current credit card - for emergency use/ things that can be claimed back on expenses (rail fare etc).

I guess it is alot of accounts really but it means I can see what I have availiable to spend, or not as the case may be.

innovate

Assuming none of the accounts is overdrawn/in arrears, your list of accounts doesn't look out of the ordinary to me (but then I have dozens of accounts myself).

You probably just got turned down for a 0% CC deal because you have had one already. Have you tried elsewhere? There is lots of breat information about CCs on the main site, and there's also a CC forum.
http://www.moneysavingexpert.com/credit-cards/

My recommendation would be that you look around for better deals - - you don't have to stick with just one bank. You will reduce your risks (e.g. regarding IT melt-downs, like Nationwide had a few months ago) by spreading your money across banks. And you will with 100% certainty get better deals at different banks from time to time. E.g. Nationwide have 5% interest right now for 12 months on their FlexDirect current account. Just as an example.