What effect does lots of bank accounts have on your credit rating?

ColoredSands

Hi this might be a dumb question but does having lots of bank accounts affect your credit file negatively?

quinndelfre

ColoredSands wrote: »

Hi this might be a dumb question but does having lots of bank accounts affect your credit file negatively?

Lots of savings or current accounts? Providing the balance is above 0 it's okay. But if you have a lot of overdraft set up on each account it looks like you're preparing to take out a mega loan.

Lots of credit cards? Won't affect credit score but looks bad.

DCFC79

How many we talking about here ?

ColoredSands

11 current accounts. Only two of them have overdrafts which are for £250 and £100. Also all of them are in credit.

Thrugelmir

All used for a purpose?

ColoredSands

Yes one main account, one for abroad usage and the rest are savings at 2 3 4 and 5%.

Thrugelmir

ColoredSands wrote: »

Yes one main account, one for abroad usage and the rest are savings at 2 3 4 and 5%.

Then why the requirement for credit. As doesn't sound as if you need to borrow.

ColoredSands

Thrugelmir wrote: »

Then why the requirement for credit. As doesn't sound as if you need to borrow.

No need at the moment but am thinking about purchasing a property in the near future so was just curious about this.

Maggie.Moo_2

HSBC rejected my overdraft extension request and one of the reasons was because I held credit accounts elsewhere. At the time I only had an HSBC student account with an overdraft, a Halifax Reward Account without an overdraft and a Tesco Current Account without an overdraft. Even though I don't use two of them for credit, they are still logged as credit accounts and that's worked negatively for me. There were other reasons given for being denied but this one surprised and annoyed me the most. If you have access to your credit file it will be worth looking at how many of your accounts are recorded as credit accounts (including non-banking credit accounts), I was surprised to find out mine were because I never asked or wanted those two accounts for credit.

YorkshireBoy

Maggie.Moo wrote: »

I was surprised to find out mine were because I never asked or wanted those two accounts for credit.

Current accounts without formal facilities have the possibility of going unauthorised overdrawn, eg with debit card spending, ATM withdrawals, paid/unpaid item fees, etc...and that's why they appear on your CRA file.

Maggie.Moo_2

YorkshireBoy wrote: »

Current accounts without formal facilities have the possibility of going unauthorised overdrawn, eg with debit card spending, ATM withdrawals, paid/unpaid item fees, etc...and that's why they appear on your CRA file.

Of course! That's so obvious now but I just didn't see that connection before. Thanks, I'm less annoyed now