Second account with existing bank - does this affect credit rating?

busybumblebee

Hi all
I'm not sure if I've posted in the right place or not. Im thinking of opening a second account with my current bank, just a basic account to use for second income payments (so easy to monitor for Mr Taxman). I just wondered if this is affects my credit rating or not? I'm guessing the answer is yes, but thought I'd ask. My fixed rate deal is up on my mortgage in a few months and I don't want to jeopardise any possible new mortgage offers just for the sake of a second basic account.
Cheers all

grumbler

I don't see how it can have any effect unless it comes with a big overdraft and/or involves a credit search (minor short-term effect)

goaroundnow

The average age of your accounts is factored into a lot of credit-scoring so, like searches, may have a short-term detrimental effect on your score.

This will easily be negated by good running of that (and all other) account(s) in time.

I would think (think only) that mortgage scoring would not be so weighted towards age of accounts etc but more interested in account conduct, especially current mortgage as well as the usual suspects like debt v income, debt v limits etc.

grumbler

goaroundnow wrote: »

The average age of your accounts is factored into a lot of credit-scoring

Is it a fact? I am asking because this makes no sense to me. The highest age indeed is often factored.

goaroundnow

grumbler wrote: »

Is it a fact? I am asking because this makes no sense to me. The highest age indeed is often factored.

I really do not know if it is a fact but I have been told by a few people that average age of accounts can affect your score.

One of the "fact sheets" on the Experian website also states it as so. Specifically, that a new account will initially dent your score but will, of course, in time increase it if the account is run well.

Also, if you do the very basic and crude (but helpful) credit-checker on this site, it also asks if the majority of your accounts are older than 18 months old. It then goes on to explain that it asks this as too many new accounts could indicate being new to credit and that there's been no time for problems to develop.