Current account switching = bad rating?

Dird

Hi,
My bank has called me in to talk about upgrading my current account which made me realise some of the different offers available (and the switching bonus for those not offering much more).

Would opening a bunch of bank accounts in a year make my credit rating really bad for remortgaging etc? Some things I can think:
- Each bank would do a credit check (apparently lots in a short timespan isn't a good thing for some reason?)
- My average bank account lifespan would be lower which also showed on my Experian report

TBeckett100

It's not worth the gamble. Depending on your financial position when you go for a mortgage you may need every little point. Chasing a hundred here and a couple of hundred there could mean the difference between paying x for your mortgage here or Y there

Dird

TBeckett100 wrote: »

It's not worth the gamble. Depending on your financial position when you go for a mortgage you may need every little point. Chasing a hundred here and a couple of hundred there could mean the difference between paying x for your mortgage here or Y there

I've never owned a credit card or used an overdraft & the only debt I've had is student loan (mortgage still pending). From what I understand my credit score currently should be pretty much perfect besides not being on the electoral roll

Edit: Ok. Experian now flags up the credit check I did for the mortgage application. It only knocked 4 off that score but it says checks are only counted in the last 6 months. As I'll soon be starting a 2 year fixed I should be OK for the next 12 months or so

TBeckett100

Credit scores are meaningless. Lenders don't see them, all they see if how you have managed credit in the past

Since you have no real track record this can be viewed negatively. They have no real data to show how you behave with credit and pay it back.

When assessing if they want to lend, with no score to go on their computer creates their own score for you based on what they choose to award points for.

pjread

Dird wrote: »

I've never owned a credit card or used an overdraft & the only debt I've had is student loan (mortgage still pending). From what I understand my credit score currently should be pretty much perfect besides not being on the electoral roll

No, you've no appreciative record of managing credit and you're not on the electoral roll; most will view that very negatively IMO. First things first, get on the electoral roll pronto!

Dird

pjread wrote: »

First things first, get on the electoral roll pronto!

I'm on the roll as of early May, Experian etc just need to load their data from last month

Are Direct Debits not treated as credit?

pjread

No. Things you might not consider credit but are will be there (e.g. mobile phone contracts) and I think some utility companies do report to credit agencies now, but in general nothing about direct debits as such will be recorded.

Looking at the data on Experian is useful but ignore any number/'score' as it really is irrelevant.

amnblog

Don't mess about with other financial arrangements unnecessarily when applying for a mortgage.

Dird

amnblog wrote: »

Don't mess about with other financial arrangements unnecessarily when applying for a mortgage.

Yeah I'm thinking ahead for after it's been approved

pjread

I would make that "after completion" if I were you.

Dird

pjread wrote: »

I would make that "after completion" if I were you.

You mean on commencement? Mortgage sites threw me off with their "on completion" cashback which is paid out a lot sooner than when the mortgage has been paid off.

It's what I meant anyway, basically after I've paid the first months mortgage. But I might start with M&S as they seem to offer £100 voucher with no minimum pay in (I can just leave it with £1 for a month?).