Does Closing Bank Account Effect Credit Rating

TJ_Hawk

I have several bank accounts to take advantage of good savings rates and other benefits however one of the banks has reduced its savings rate by half and I intend to close the accounts and open accounts with another bank. My question is that I have been told that closing the bank accounts may effect my credit score. I suspect the bank wants to keep my accounts open and active as it looks good on the books! Thanks for your help in advance.

fenton1

I have just posted the following under a new thread but this happened to me today and I am wondering the same thing.
I have just tried to switch bank accounts and HSBC computer says "uh uhh" The embarrassed young man had to see his supervisor but it could not be overridden in the branch and apparently I could only be offered a lesser account and not the advance recommended by MSE email. I was also going to take out an ISA. I know I have a good credit rating. I owe nothing but have opened a couple of interest bearing current accounts during the last year. Could this be the reason for being declined or could it be an input error by HSBC that has caused this? Is it possible to find out? I have never had any problems in the past.

MARTYM8`

TJ_Hawk wrote: »

I have several bank accounts to take advantage of good savings rates and other benefits however one of the banks has reduced its savings rate by half and I intend to close the accounts and open accounts with another bank. My question is that I have been told that closing the bank accounts may effect my credit score. I suspect the bank wants to keep my accounts open and active as it looks good on the books! Thanks for your help in advance.

Closing an account which you have held for many years probably isn't the best move - as it suggests stability.

Closing one you have had for 3 months and just use for savings purposes probably won't make much difference.