Can having too many current accounts hammer my credit rating?

skybluesaver

Hi all. Can having alot of current accounts open, lower my credit rating? I was thinking as there was the potential to use an overdraft as another line of credit, the more current accounts one has open, the bigger the negative impact this can have on a credit report.

Herbalus

In a word, no.

More explicitly, anecdotal evidence suggests the number of current accounts open does not hinder further credit applications. I have a dozen and still got a mortgage last year without issue.

But the way you use your accounts could determine whether you are accepted for more of course. I've always declined to apply for an overdraft, so it shouldn't show as available credit on my file.

oldfella

any overdraft that is available will be treated as available credit. Overdraft used is obviously credit in use.

skybluesaver

Thanks, i have no overdraft on any of my current accounts.

saintalan

skybluesaver wrote: »

Hi all. Can having alot of current accounts open, lower my credit rating? ...

I would say maybe, you might want to read more here

masonic

saintalan wrote: »

I would say maybe, you might want to read more here

It's important to make the distinction between holding a large number of current accounts and applying for a large number of current accounts in a short space of time.

saintalan

masonic wrote: »

It's important to make the distinction between holding a large number of current accounts and applying for a large number of current accounts in a short space of time.

I agree but I am guessing a lot of people do the latter to achieve the former. Once achieved I believe it will improve credit rating.

I am not seeking to put people off only to share my experience for their benefit.

Regards

Alan