Bank account not showing on credit report?

CharlieNotman91

Hello there,

So I've started properly tracking my credit report and attempting to improve my credit score (using a credit card for daily purchases), I moved my bank account about 2 months ago to Cumberland Building Society and it's never actually shown on my credit report yet, could this negatively affect my credit report and my desirability to lenders?

On another note, I recently took out a PCH car and new phone contract (well, sim-only), and my "score" has dropped by 60. Does taking out new loans affect credit negatively?

Kind regards,
Charlie

rolls99

It's all relative. As you've only just opened the account, then it might just be a delay in being reported.


Assuming you don't have any overdraft facility (or use it) a bank account would theoretically only ever show as "Green" on your report.


A long standing bank account (even one with just a quid sitting in it) never attracting fees or "red" marks is clearly better than one showing late payments.


One other thing of course is that your old bank account will still presumably show on the report anyway - but assuming Cumberland ran a Credit check before you opened your account with them, this will show as a search on your record therefore will have some impact; one search on it's own isn't really something "negative" but a dozen might be.


As for the car loan that is now "Owed money" and provided no missed payments then in two or three years, will then have recorded the balance lowering and your payments.


As for how that effects your credit report, is hard to say: if you've not yet made (or have only made a few) payments, then it is a relatively high balance so you owe more.


Phone contract: unless you're paying for a phone on finance (some providers now seem to be going down the road of "selling" you the phone on finance and contracting the sim/package separately to it), then like your bank account you don't actually "Owe" anything - it will show "Green" like your bank account (unless you miss payments).


Obviously again the CC is different; you could spend 6 months of the year low balance (using less % of available credit) and the other half perhaps maxed out so "Owing" more.


How each lender interprets this varies; as does how you "Get" the higher balance on your card (cash advances being reported for instance).


The upshot is with the car alone you owe a fixed amount which will only drop over time (when it's paid off), which means that counts as used credit of course.


Bank accounts and phones really "Show you have not missed payments" rather than giving specific balances (except with ODs etc)


Really your credit report is a "Statement of fact" showing whether you have missed payments or not, what you actually owe and how much you have paid. Credit offers will no doubt be affected by precisely how much you owe - and - how much you "Could" borrow - a lender might see a CC with £10k available credit that you always clear in full, which is a positive but on the other hand you "Could" theoretically immediately go and max that available credit out, so whether or not you "Owe" it at the time, the fact you could means any lender will take that into account too.
In summary whatever you actually owe, the key thing is not "maxing out" cards constantly, and consistency: paying everything on time and perhaps setting your own "limit" of say 50% avail credit on a card (if you carry a balance) - and avoiding minimum payments.