Halifax Ultimate Rewards Current Account

SammenForLivet2

Hello,

I currently have two accounts:

Santander 123 (No overdraft - opted out)
Additions Active (Barclays) (Large overdraft)

and was looking to open an Ultimate Reward Current Account, and then transfer the Barclays account down to the basic account, and just have my salary and debit card payments paid from their and also set up a standing order for £750 to credit the Halifax account, and then setup my Mortgage and TV License from there, while keeping the Barclays basic account, because it comes with a £200 fee free overdraft (although the fees are higher after the £200- but I barely use it), and also retaining the 123 account for cashback.

Could anyone help me with these questions?

1.) Could I do this plan?
2.) Will it affect my credit record (negatively) having three current accounts?
3.) If Halifax offer me an overdraft, should I accept it (will it affect my credit record and chances of getting a cashback card in late May 2014?)
4.) How easy/ hard is the credit scoring criteria of the Ultimate Reward Current account? Does anyone have any experiences of opening this account?

Archi_Bald

Why do you want the URCA?

Have you considered a Nationwide FlexDirect - 12 months free overdraft (but no guarantee that they will give you an overdraft)?

If you run the accounts properly (no failed DDs, no unauthorised overdrafts), multiple current account don't damage your creditworthiness. However, if you want to apply for a large loan of mortgage in the next 6-12 months, applying for new current accounts now might not be such a good idea.

rb10

Firstly, I'm not sure what the purpose of keeping the Barclays account is. Why not just have your salary paid directly to the Halifax account, rather than having a standing order to transfer it?

You'll have less chance of making an error if you only have two accounts (Santander & Halifax) that have money going through them each month.

You mention that you'd like to keep the Barclays account because of the £200 free overdraft - the Halifax URCA has a £300 free overdraft (and the Nationwide one mentioned above £100).

So I'd consider that ... what will Barclays give you that Halifax (or Nationwide) won't?

macfamilyent wrote: »

1.) Could I do this plan?
2.) Will it affect my credit record (negatively) having three current accounts?
3.) If Halifax offer me an overdraft, should I accept it (will it affect my credit record and chances of getting a cashback card in late May 2014?)
4.) How easy/ hard is the credit scoring criteria of the Ultimate Reward Current account? Does anyone have any experiences of opening this account?

1) Yes.
2) Not materially.
3) I would always advise taking an overdraft on a used current account. Everyone makes mistakes, and it's better to have a cheap mistake (using an arranged overdraft) than an expensive one (unarranged overdraft). Provided you manage the account well, it shouldn't change your chances of getting a cashback card.
4) The vast majority of people are accepted.

SammenForLivet2

Hello and thank you all very much for your help so far.

The reason in keeping the Barclay's account was because the £200 overdraft is fee-free and also because I thought that having a long standing account on your file is good, but I may be wrong.

Also, if use the overdraft on the Ultimate Rewards Account, then don't you lose the £5 reward

Archi_Bald

And you pay £15/mth, £180 a year, for the privilege of having an URCA? Why?

rb10

macfamilyent wrote: »

Hello and thank you all very much for your help so far.

The reason in keeping the Barclay's account was because the £200 overdraft is fee-free and also because I thought that having a long standing account on your file is good, but I may be wrong.

There are marginal benefits to doing so. You don't have to use the account though, just leave it open with a pound in.

macfamilyent wrote: »

Also, if use the overdraft on the Ultimate Rewards Account, then don't you lose the £5 reward

Yes - a very good point, which I had forgotten.

Your best bet is probably to just make sure you keep the URCA in credit - you can sign up for text alerts for when your balance drops below a specified level. If you bring the account back into credit by about 10pm, you won't pay anything for being overdrawn and will still get the reward.