Worried about having too many credit checks at once

Legacy_user

Yesterday I applied online for a Santander 123 joint account with my OH. I've just had an e-mail saying our application has been successful :j I have seen that I can also have another Santander 123 account in my name only, and want to apply, but would they need to credit check me again? I'm worried about having too many credit checks at once & how it will affect my credit rating. I haven't had a credit check since last year (1 for my mortgage, 1 for a credit limit increase on my credit card). I also want to apply for a TSB Classic Plus Account as they're offering 5% interest.

Sorry if this is a silly question!!

grumbler

Most likely they will check again but IMO two isn't too many.

TheEffect

I've got roughly 20 (haven't looked recently) on my credit report, and opened a Santander 123 account in December without problems.

The only bank that I've ever had a problem opening a current account with a large amount of searches is HSBC.

Archi_Bald

My Noddle shows 8 anti-money laundering checks which appear to be the results of current account applications, and a total of 36 searches (includes ID check and searches for insurance quotes). I keep getting guaranteed CC offers from Barclaycard and Halifax, and none of my many applications for current accounts have been turned down.

Searches only matter if you are applying for credit (overdraft, loan, mortgage). They stay on your files for 12 to 24 months, and common wisdom suggests that they will be seen as less important by the lender as they age.

Applying for a handful of current accounts, particularly if you don't request an overdraft, in the space of a week, or even a day, should not be an issue unless you have plans for a major credit application in the next 6-12 months.

grumbler

Archi_Bald wrote: »

Searches only matter if you are applying for credit (overdraft, loan, mortgage).

Reportedly, most current account applications generate a credit search even if you don't apply for an overdraft or it isn't offered.

System

Ah ok, thank you, hopefully it should be ok then

MARTYM8`

I think its a bit hit and miss.

I applied for a Santander basic current account last year when one of the cashback sites was offering cashback just for opening an account (no switch needed) - got rejected.

Not had a problem with any one else (all for full not basic accounts) - and I have quite a few now to maximise my interest earnings and switch incentives. No idea why Santander didn't approve me - but its just the luck of the draw.

Clearly having lots of searches could affect credit card or mortgage applications - but I have enough cards anyway.

As for mortgages - well people get MMR reviews now with detailed scrutiny of finances - so maybe you just should be honest and say you are financially astute and pay attention to what is going on? Surely banks want customers who are financially astute and thus more likely to pay their mortgage?!

If you have no overdraft with any of them - then there shouldn't be an issue. Or just apply to someone you have an account with already.

PS I get credit searches when moving my home insurance to a new company and occasionally savings accounts - they presumably just want to check you are who you claim you are and that you live at the address you claim to.

grumbler

MARTYM8` wrote: »

...
PS I get credit searches when moving my home insurance to a new company and occasionally savings accounts - they presumably just want to check you are who you claim you are and that you live at the address you claim to.

They are ID searches then, not credit searches.

System

Yes sorry to clarify I have not applied for an overdraft (and never will!! Hate them). I'm not in debt, well, I do buy fuel on my Tesco credit card for the points but clear it every month. I've never had an application rejected.

TheEffect

I just got my Equifax credit report and I actually have 23 credit search in the past 12 months (excluding quotations, ID checks etc), 17 of which are in the past 6 months.

I've recently been accepted for a NatWest Cashback Credit Card, and Santander 123 account. I'm guessing searches aren't a huge deterrent. I owe no money, and have a low available credit.

I applied for a lot of accounts to gain Quidco cashback/switch bonuses, as well as moved some credit cards around. It seems the damage done by credit searches is short lived.

The only application I've had declined in the past 12 months is for a HSBC bank account.