Time spent with bank - how does it affect your credit?

mrssarahb

I'm thinking of leaving Lloyds, the only bank I've ever been with, after 20 odd years..

I'm nervous how this may look on my credit file though - does anyone have any insight or advice about how this may affect my credit rating?

Thanks

MrJester

mrssarahb wrote: »

I'm thinking of leaving Lloyds, the only bank I've ever been with, after 20 odd years..

I'm nervous how this may look on my credit file though - does anyone have any insight or advice about how this may affect my credit rating?

Thanks

I'd like to know more about this too. Often asked how long been banking with someone when applying for credit, so just how important is it?
Particularly with MSE encouraging people to switch banks, could this actually be detrimental?

Tixy

Hi

When you say affect your credit rating, specifically what credit products are you likely to be applying for?
In the short term it may be harder to get accepted for new credit products from your new bank than from your existing bank. But it should not impact on your ability to get credit from any other source.

If your existing bank do not report to your credit file (due to the age of your account) then after a few months it actually could slightly improve your chance of being accepted for credit.

Fruit_and_Nut_Case

mrssarahb wrote: »

I'm thinking of leaving Lloyds, the only bank I've ever been with, after 20 odd years..

I'm nervous how this may look on my credit file though - does anyone have any insight or advice about how this may affect my credit rating?

Thanks

Unless you are making use of the Switch Guarantee there is no need to close your Lloyds account. This could provide continuity if you're still nervous.

MrJester

Malcnascar wrote: »

Time with your Bank is just one of many items that build your attractiveness to a lender. Lenders look for stability and in looking at this, time with bank, time with employer, registered on electoral role are relevant. Lenders know that from time to time people move, change jobs change banks. In the short term, in my opinion, a change may have a negative affect although in isolation it is unlikely that the impact would drastically alter your ability to get credit.

Hm so one can assume that a new bank account is similar to a new address, initially it could be negative, but if you can provide good proof of this then it should mostly cancel out the negative. E.g. getting on the electoral roll for your address.

Perhaps when they request bank statements makes up for a lot of it.