Will getting a new bank account affect my credit rating?

BrookesAndrew

Hi everybody,

I have been with Santander now around about 3 years. I am 18 years old and I have a credit card and phone contract. I only got them a few months ago so as you can imagine my credit rating is pretty poor due to me only being 18. I do earn over a 1000 a month but I have only been in my job for 5 months so that is going against me as well. I am wondering if I close my santander account and open another account with a different bank will this affect my credit rating? I noticed when applying for things like credit cards or stuff like that. They ask how long I have been with my current bank.

Thanks in advance,
Andrew

grumbler

Firstly, you don't have to close the old account to get a new one. And it's worth having more than one account for emergencies.
Secondly, even unneeded account is a valuable asset nowadays when you can get various bribes for switching it.

If the account is not very old, then closing it will have a very small effect on your credit scoring, possibly even smaller than a credit search record resulted from the new application.

YorkshireBoy

At 18 years of age, your credit history is going to be negligible anyway.

That said, if you do switch and keep the Santander account open, be aware of any funding requirements in order to avoid fees!

Lith

i have 4 accounts..... why would it effect your rating? lol

(unless you've got something to hide)

BrookesAndrew

That is good to hear. I just wanted to check because I didn't get why they ask on credit applications how long you have been with your bank.

anotheruser

Lith wrote: »

i have 4 accounts..... why would it effect your rating? lol
(unless you've got something to hide)

It wouldn't effect the credit rating, it would affect it. The changed rating would be the effect of whatever affected it. :rotfl:

wiseshark

BrookesAndrew wrote: »

That is good to hear. I just wanted to check because I didn't get why they ask on credit applications how long you have been with your bank.[/QUOTE


It's to do with each individual banks credit scoring system. the longer you are with a bank, the more points you score. The same applies to length of employment with a company and whether you are married as this shows stability.

At 18 years of age, it doesn't really matter in your case. As others have said, it is always good to have at least two current accounts with unrelated banks. Some people have 20 current accounts enabling them to take advantage of various rewards and different bank products.

BrookesAndrew

Thanks for your help. I will look into one quite soon. Whenever I apply online though it always seems to be a lot of hassle?! I got rejected for a first direct account which was very annoying. I will have a look around and see if there are some good deals.

Thanks for everyones help.

wiseshark

I wouldn't be upset about being rejected by First Direct. They are particularly choosey about their customers. Wait six months and then apply for a new current account and keep your old one open.

Choose an account that pays rewards such as Santander, Lloyds Vantage, Bank of Scotland Classic with Vantage or Halifax reward which pays £5 each month you pay in a minimum of £750 plus 2 Direct Debits paid out each month. Make sure not to go overdrawn on a Halifax account or you will be fleeced.