Should I close bank account?

pupgrum

I have a Halifax instant savers account for 15 years, Halifax current account for 15 years, Barclays Platinum Purchase credit card for 6 months and Barclays current account for 6 months.

My credit score is poor on Experian and fair on Equifax. I have no missed payments, no defaults, recently moved and newly registered on Electoral Register which has now appeared on Equifax so far.

I have 16 searches in the past year, 4 are hard searches which lenders can see, 3 of them are for loan applications which have been denied. Last week I set a direct debit for a mobile broadband and the 4th search is for that. The broadband provider told me my credit rating is poor and I had to pay a deposit before he gave me the dongle. The other searches were checking credit card deals and I had some searches when I opened the Barclays credit card and current account cards.

I'm hoping to apply for a £2000 loan in August/September. Should I close my Barclays current account seeing it offers no interest and it's affecting the overall age of accounts on my credit reports? I wouldn't close my older Halifax accounts, but it's essential to keep the Barclays Platinum Purchase credit card to build my rating.

Rich7111

To be totally honest it will make no difference what so ever. I am thinking it was a mobile broadband rather than landline that required a deposit?
I have never heard of a credit check for setting up a direct debit myself, maybe an ID check. I think any more than 2 credit checks in a 6 month period is not helping, the score from the credit file companies isn't seen for a loan.

Each loan company will score you on
Your time at address, make sure nothing showing on your previous address, if you lived at your previous address for over 6 years that will help, if you have moved a few times quickly it will lower your chances, lenders like stability

Barclays wont be lowering your score, in fact the extra green ticks will probably help a little rather than bring it down

Your employment status and income will also count for a loan. You should approach your own banks for a loan as they know you best, try the one your wages are going into.

It's annoying getting rejected, but rather than waste further credit searches, you can actually use a loan checker before you apply, these are not perfect, but they will score your credit file in the background and may give you a better indiciation of companies who may approve you.

Hope that helps

DCFC79

Your credit score/rating is of no use to anyone, its no use as lenders don't see it.

pupgrum

DCFC79 wrote: »

Your credit score/rating is of no use to anyone, its no use as lenders don't see it.

I wouldn't say that. Experian and Equifax didn't rate me positively, and neither did the mobile broadband provider. Your credit score gives you an idea of how lenders will rate you. If I get a good score, lenders are not likely to turn me away.

pupgrum

Rich7111 wrote: »

To be totally honest it will make no difference what so ever. I am thinking it was a mobile broadband rather than landline that required a deposit?
I have never heard of a credit check for setting up a direct debit myself, maybe an ID check. I think any more than 2 credit checks in a 6 month period is not helping, the score from the credit file companies isn't seen for a loan.

Each loan company will score you on
Your time at address, make sure nothing showing on your previous address, if you lived at your previous address for over 6 years that will help, if you have moved a few times quickly it will lower your chances, lenders like stability

Barclays wont be lowering your score, in fact the extra green ticks will probably help a little rather than bring it down

Your employment status and income will also count for a loan. You should approach your own banks for a loan as they know you best, try the one your wages are going into.

It's annoying getting rejected, but rather than waste further credit searches, you can actually use a loan checker before you apply, these are not perfect, but they will score your credit file in the background and may give you a better indiciation of companies who may approve you.

Hope that helps

I already tried Halifax. They were happy seeing I have income and have not missed any direct debit payments for direct debits set up 8 years ago, but they declined giving me a loan after running a credit check.

My income doesn't go to my Barclays current account. I just put maybe £5-10 per month there and spend a bit. There's no overdraft set up, no interest. I thought the overall age of accounts make a difference to your credit rating. Like if I have 4 accounts open, it adds up the age of each account and divide it by four.

The mobile broadband provider is EE. I had to pay £100 which will be refunded after paying the 3rd month's bill. This is for a portable mini wifi. EE do not ask for a deposit if your credit rating is good. I was told I'd only be offered their service if I paid the deposit because my credit rating is poor.

DCFC79

pupgrum wrote: »

I wouldn't say that. Experian and Equifax didn't rate me positively, and neither did the mobile broadband provider. Your credit score gives you an idea of how lenders will rate you. If I get a good score, lenders are not likely to turn me away.

What matters is what's on your credit file which is what lenders see.

Well no the score is given by experian,Equifax etc but not the lenders.