Multiple Bank Accounts Affect Credit Score?

PaulC5

We are close to completing on the sale of our house leaving us with a lump sum.

We would like to gain the highest interest on this lump sum but this would mean opening multiple bank accounts.

I am fully aware of the bank accounts and there criteria to gain the interest but I am worried that opening multiple bank accounts will effect our credit scores and ultimately effect our mortgage application/offer on our new house.

Is this something to worry about?

[Deleted User]

A few searches for bank accounts shouldn't cause any issues.

Remeber that lenders don't see any of the scores the CRAs give you (because they're meaningless) - they simply look at your credit history.

PaulC5

Its having lots of bank accounts on my record that concerns me.

Does it not look dodgy?

Surely most people only have one or two, one being for personal and the other maybe a one joint one?

[Deleted User]

Many people have a number of accounts - I have at least half a dozen.

Many will not appear on your credit file, especially if they don't have overdrafts.

Candyapple

My experience here:
https://forums.moneysavingexpert.com/discussion/5320500

If you are applying for a mortgage, I would not apply for anything until you have completed and have the keys in your hand.

Deleted_User wrote: »

Many will not appear on your credit file, especially if they don't have overdrafts.

All my bank accounts have no overdrafts attached to them and they are all reported back to the CRA's.

blindman

PaulC5 wrote: »

We are close to completing on the sale of our house leaving us with a lump sum.

We would like to gain the highest interest on this lump sum but this would mean opening multiple bank accounts.

I am fully aware of the bank accounts and there criteria to gain the interest but I am worried that opening multiple bank accounts will effect our credit scores and ultimately effect our mortgage application/offer on our new house.

Is this something to worry about?

You can open 2 x Santander 123 accounts and put in £20,000 each (so £40,000) at 3%

Can't see that being a problem.

How much more have you got?

No I cannot see it as being a problem especially if you have no overdraft facility on any of them.

MARTYM8`

PaulC5 wrote: »

Its having lots of bank accounts on my record that concerns me.

Does it not look dodgy?

Surely most people only have one or two, one being for personal and the other maybe a one joint one?

A lot of people use multiple current accounts for interest – keeping a main account for transactions.

How else will you get 3, 4 or even 5% (or 6% regular savers) instant access with zero risk.

I would have thought mortgage companies would think such people as being financially savvy – and therefore more likely to pay their mortgage.

It should be a plus – but multiple applications will potentially affect your ‘scores’ for what they are worth in the short term.