Help RE: Credit rating and current account applications

Belial19

Just wondered if anyone could give advice...

My credit rating has been spot on for years now, however, I recently took advantage of a couple of current account offers, and in the meantime used them to switch two previous accounts.

When I logged into noddle today, my rating had gone down from 5 to 4. The only possibility for this, is that I have switched to two new current accounts (one of which has the minimum overdraft, and the other I opted out of an overdraft altogether).

Is this right? Is there anything I can do to check it, or to get it up to 5 again? It doesn't seem particularly fair bearing in mind I haven't theoretically applied for credit - in fact the two accounts I closed had a combined overdaft of £300, whereas the new combined current accounts have a combined value of £100.

If there is nothing I can do to get the rating to 5 again, how long will it be before the rating goes up to 5 again? I was thinking of closing my third and final current account and switching to a better one for a better interest rate, but this has now put me off - it seems daft that managing money better has decreased the credit rating.

Thanks in advance

Tixy

Don't worry about the noddle rating. Nobody ever sees that but you.

It is usual that when you open any new credit account your ability to get new credit accounts is impacted for a short period of time. After a few months, and assuming the accounts are well run, then these should not have a significant impact on your ability to get accepted for credit.

Belial19

Tixy wrote: »

Don't worry about the noddle rating. Nobody ever sees that but you.

It is usual that when you open any new credit account your ability to get new credit accounts is impacted for a short period of time. After a few months, and assuming the accounts are well run, then these should not have a significant impact on your ability to get accepted for credit.

Thanks for the prompt response

Ok, I only really look at noddle to be honest - I'm not intending on asking for credit within the next 9 months or so although I may potentially be looking for a first-time mortgage after that. If I were to look on credit files such as Experian, do you think the rating/score which they use will have reduced in a similar way?

Would you suggest staying put with my current bank accounts then rather than switching the third one? My accounts are well run and as I mentioned before, my credit rating has been spot on for years so this is a little frustrating!

Tixy

If you looked at their scores before and after the you opened the new accounts then all other things being equal I would guess they may have reduced slightly. That said there are lots of threads on here about the unpredicatability of credit scores (and therefore relative uselessness of them).

In terms of a mortgage application I would ideally probably not apply for any new credit in the 6months run up to applying. Prior to that I wouldn't worry too much, do what is right for your finances.

Belial19

Tixy wrote: »

If you looked at their scores before and after the you opened the new accounts then all other things being equal I would guess they may have reduced slightly. That said there are lots of threads on here about the unpredicatability of credit scores (and therefore relative uselessness of them).

In terms of a mortgage application I would ideally probably not apply for any new credit in the 6months run up to applying. Prior to that I wouldn't worry too much, do what is right for your finances.

Great advice - in that case I shall look into switching my final account in a month or so for one with a much better interest on bigger balances, and not touch anything else for the next 8 months.

Thanks again (P.S nice avatar )