Leaving Halifax Reward?

AliceBanned

I've been accepted for a First Direct current account, on the third attempt over several years. I've been banking with Halifax and keep going into my overdraft and they won't give me a fee free o/d at all, despite me paying my salary into the account for the past five years. I know once I give it up I won't get the fiver again - don't think they keep doing it, but the o/d costs me a bit more each month. Last month I was charged £27 because I accidentally went £1 over my £750 limit - I phoned as it was the first time it happened, and they agreed to waive it without question, which was a relief.

I just hope I'm making a good decision to switch? I am saving for a deposit and every amount of fee free overdraft helps for now, as I'm paying my credit cards off at the same time - going to take a year or so before I can buy a flat. And I should get £100 for switching. Recently go £100 also for switching from Virgin media to BT broadband - and it's better broadband, imo.

Also I'm curious - is this likely to mean that my credit rating has improved - to be accepted for First Direct? Just interested to know - I see my report regularly but this hasn't changed in terms of "score" - I know there's more to it than that. My salary went up slightly so maybe that's helped. Thanks.

Gromitt

Leave your salary going into your Halifax account and just transfer it to FD once a month and you'll still get the £5*. It's better in your pocket than theirs!

* - of course, you also need a 2 DDs, but thats as simple as 2x£2.50/month to a savings account. Think of it as a £60 bonus for Christmas

AliceBanned

And that way I'll get the £100 for switching?

I'll have to be careful as I have so many direct debits..I was going to use FD as my main account, assuming it would be better, (as it was harder to get lol) but to be honest Halifax has been ok.

AliceBanned

ps I just applied online, and the offer was £100 for switching, but I can't remember what the DD terms are.

AliceBanned

So I leave it in Halifax for a day or two and still get their "reward"?

Gromitt

You can leave it in Halifax for seconds and still get the reward.

and you'll still get the switching bonus from FD. No need to close your Halifax account or redirect the credits.

Its upto you if you want the bother of leaving 2 DDs (or setting up 2xDDs to a savings account) for £60/year. If you have DDs of specific values each month you could just leave that amount in there before moving the rest to FD.

AliceBanned

Thanks. Think I will have them both open for now. That way I can see how it goes with FD. So far customer service does seem very pleasant and easy. And I was told I'd get £125 for paying in £1000, doesn't have to be salary paid in direct, and transferring two DDs as you said.:D

AliceBanned

Well I've done the switch. Both accounts running. Even got my £100 from First Direct already!

Problem is, I had to check my credit file for something today - my credit score in Experian has gone down from 750 (fair) to 670 (poor). I hope it picks up. The reason is a couple of searches and this account - classed as "opening a new credit account". Seems a bit much! Hopefully when it has been open for a few months the score will improve again. Didn't expect that.

JuicyJesus

AliceBanned wrote: »

Well I've done the switch. Both accounts running. Even got my £100 from First Direct already!

Problem is, I had to check my credit file for something today - my credit score in Experian has gone down from 750 (fair) to 670 (poor). I hope it picks up. The reason is a couple of searches and this account - classed as "opening a new credit account". Seems a bit much! Hopefully when it has been open for a few months the score will improve again. Didn't expect that.

Don't bother with the credit score, it's a waste of money as it means precisely sod all.

AliceBanned

Thanks - that's good to know. I actually have less debt and my credit score went down considerably.

I like to check my records so have been paying for the Experian one - but don't think I'll continue as it has been stating that I can get credit that I have subsequently been turned down for - not very accurate. I was on it originally as I had some more major credit problems years ago but will come off it as soon as my mortgage is sorted as that was my main reason for trying to improve things. It doesn't help your morale when your score goes down for silly reasons!:mad:

JuicyJesus

AliceBanned wrote: »

I like to check my records so have been paying for the Experian one - but don't think I'll continue as it has been stating that I can get credit that I have subsequently been turned down for - not very accurate. I was on it originally as I had some more major credit problems years ago but will come off it as soon as my mortgage is sorted as that was my main reason for trying to improve things. It doesn't help your morale when your score goes down for silly reasons!:mad:

Good plan. Even before your mortgage is sorted, a £2 statutory report which you can order online each month should more than suffice. That saves you £13 a month right off the bat, and as you've discovered the "recommendations" are worse than useless.