Swtiching to Another Bank - Credit Check

Lala2015

Hi everyone! :wave:

I am one of those loyal bank account holders that are too scared of the unknown/complacent to switch haha
I've had my current account with Barclays because I have had that account since I was 16 and have never had any issues. I must admit the customer service is good too.

I've recently began re-jigging my finances and I'd like my accounts to work for me as such and I have seen some attractive switching deals (i.e. cash back for switching and cash back every month providing X amount is deposited each month).

The question I have is:
Does switching to another bank or applying for a switch (regardless as to whether you are rejected or not), reflect or even show, on your credit score?

The reason I ask is I have moved twice in the last year and this has knocked my credit score (even though I have never defaulted/gone into an overdraft etc).
It's now near perfect again and I don't really want to jeopardise that!

Thank you in advance

grumbler

Yes, a credit search will be recorded unless (possibly) you apply for a basic account that typically doesn't qualify for a bonus.

Ignore the 'score' you are getting from CRA(s), hopefully for free. A credit search has a very small and short-lasting effect.

Lala2015

grumbler wrote: »

Yes, a credit search will be recorded unless (possibly) you apply for a basic account that typically doesn't qualify for a bonus.

Ignore the 'score' you are getting from CRA(s), hopefully for free. A credit search has a very small and short-lasting effect.

Thanks Grumbler!
I tend to use Noddle (free) as I reached the limit on my Experian free trial. Ultimately, it wouldn't 'really' matter then - unless of course I was rejected for said current account (I would be hugely surprised if this was the case!)

What are people's opinions of switching?

originator

I think it's brilliant! Only came very late to the party though,was like you,scared of doing it and complacent.Just go for it,so far I've found it good fun

Lala2015

Hi all!

I've just found this account:
https://www.halifax.co.uk/bankaccounts/landing/rca-1/?WT.mc_id=100966023%7C274418248%7C0
Does anyone have it/know if it is any good?

I'm worried about switching in case my rent/DDs default.

I've also just come home to a letter regarding my interest on my savings account (which is the same bank as my current account) and debating switching this too!

grumbler

It is good because of the easy monthly fiver, but for a switching bonus there are better, £150, options.

IMO, it's better to do gradually a sequence of switches and to leave Halifax Reward for the end of the sequence. Santander 123 is a good final destination too.
BTW, your Barclays is good to have too because of the free monthly £4 (£7-£3) 'blue reward'.

Also, it's worth having more than one account and switching the spare account not the main one.

Re DDs you always have to keep a close eye on them when switching.

SnowTiger

Lala2015 wrote: »

The question I have is:
Does switching to another bank or applying for a switch (regardless as to whether you are rejected or not), reflect or even show, on your credit score?

Any change seems to affect credit scores; usually negatively. But it's only temporarily and you shouldn't worry about scores too much. They're only indicators.

I've read that lenders take the length of time you've had your bank account in to consideration. The longer the better. But I don't know if it really makes much or any difference. I'd rather have £150.

Lala2015

Thanks all!
I don't really have any other accounts I could switch, so unfortunately, my main account would be the one.

I have my current account (where wages are paid & rent is taken from etc) with Barclays - have had since I was 16.
Barclays everyday saver (for my house deposit).
Another current account with another lender (for my car insurance) - only credits into this account though.
And one CC.

So it would be the main account and my saver account. I'll probably start of switching my everyday saver to get a better interest rate and as there are no DDs going out of that one.. see how seamless that is?

colsten

You cannot use the switching service for a savings account.

But you can open more current accounts to use as donor accounts for switching.

grumbler

colsten wrote: »

But you can open more current accounts to use as donor accounts for switching...

...including with the same Barclays.

Lala2015

grumbler wrote: »

...including with the same Barclays.

Morning all & thanks for all the replies!

I'm weighing up the pros & cons, with the view of potentially switching online today.

Pros:
£100 upfront cash back
£5 every month (I meet - and always meet the criteria so no doubt about this).
The £5 is far more than I am getting with my Barclays current account per month (approx. £1 per month!)


Cons:
I'm worried everything will go wrong and payments/rent/utilities etc. will default!
This will show up on my credit score/history and I will have to build back up.
Length I've been with new bank (Halifax) will obviously show as a very short time (when applying for a mortgage).


This will show up on credit score and I'm aware I will have to build this back up, BUT I will be going to be switching my car insurance & breakdown provider in October which will do exactly the same thing.
I also am not planning on applying for a mortgage until January at the earliest.


I'm torn!