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Do multiple current accounts impact your credit score?
IDL
Posts: 7 Forumite
Hi all,
First post from me so please be gentle..
I am currently saving everything I have towards a house deposit and am eagerly awaiting the new ISAs in August. I'm living incredibly frugally so am managing to save a decent amount at the moment (~1k/month)
Without the option of a full cash ISA this year, I'm putting my incoming savings into a TSB current plus which gives me 5% on the first 2K.
My plan is to essentially reach 'equilibrium' between my FirstDirect current account (main account, opened last april, with £300/month into Regular Saver @ 6% until July), TSB current+ maxxed at 2k with £500/month in and then £500/month from that into a Santander 123 as overflow. This, I'm hoping, will make the most of the interest I'm getting on my savings. (The other 200/month would go into the H2B ISA when available)
My question is quite simple though... will having this number of current accounts raise any 'red flags' with lenders? I have no debts and a reasonable amount coming into the accounts, so I'm hoping not, however don't want to jeopardise my mortgage eligibility for short term gains!
Cheers, thanks for any wisdom you can share
IdL
First post from me so please be gentle..
I am currently saving everything I have towards a house deposit and am eagerly awaiting the new ISAs in August. I'm living incredibly frugally so am managing to save a decent amount at the moment (~1k/month)
Without the option of a full cash ISA this year, I'm putting my incoming savings into a TSB current plus which gives me 5% on the first 2K.
My plan is to essentially reach 'equilibrium' between my FirstDirect current account (main account, opened last april, with £300/month into Regular Saver @ 6% until July), TSB current+ maxxed at 2k with £500/month in and then £500/month from that into a Santander 123 as overflow. This, I'm hoping, will make the most of the interest I'm getting on my savings. (The other 200/month would go into the H2B ISA when available)
My question is quite simple though... will having this number of current accounts raise any 'red flags' with lenders? I have no debts and a reasonable amount coming into the accounts, so I'm hoping not, however don't want to jeopardise my mortgage eligibility for short term gains!
Cheers, thanks for any wisdom you can share
IdL
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Comments
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Apologies, second post from me (apparently)!0
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What lenders look for will vary, so there isn't a yes/ no answer.
In general I believe a current account will have minimal if any impact. A lot of them, especially if opened together and just before a larger credit activity such as a mortgage could.
In you case three isn't a huge number... Several people on here are well into double figures, so not one to lose too much sleep over I would suggest.0 -
Thank you, that's reassuring!0
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You might want to look at other Regular Savers, such as M&S also @ 6%.
I would also advise keeping your First Direct account as this seems to be the oldest. Mortgage lenders like to see some stability in terms of current account management. Also, when your First Direct regular saver matures in July, you can immediately open another
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