Bank Switching Advice Please

lodgertotenant

Hi There,

I was hoping I could get some advice with regards to switching my bank account.

I've been banking with Natwest for about 12/13 years as my parents opened that account for me when I was younger, as they bank with Natwest. I need to sort out my finances and Natwest really isn't offering me anything - I have a select silver account, I hardly have holidays to take advantage of the insurance perk and I never use the TasteCard they've given me either, so I'm wasting £10 a month here. I earn a low wage (NHS worker sadly) and live in an expensive area without getting a waiting allowance, so I'm unable to put money into a savings account. I'm therefore looking at switching to TSB's 5% AER Current Account, so I can get at least something back on what I'm paying in to that account, whilst I'm trying to clear my debt. I can meet the requirements of the TSB account as I'm earn £22k and have 5 active direct debits.

What's stopping me switching right now, is that I also want to move my credit card debt to a TSB 0% balance transfer credit card, as I have a £2500 debt with a Natwest Credit Card - which I'm paying interest on and this is causing a lot of stress at the moment - I also have a Zopa Loan and I've started to do a course with ICSLearn to hopefully help me get a better job that will pay me more. It's all going on here!

Anyway, I'm worried that opening a new account (if accepted) and closing a long standing bank account with Natwest , will effect my credit score so that I won't either be given a 0% balance transfer CC with TSB or I'm given one where I can't transfer all the debt so I'll end up with 2 credit cards which I don't want. All in all everything having a negative impact on my credit score basically.

Last time I checked on Equifax my score was on the border between good/excellent. I no longer have Equifax as I wanted to stop the £14 per month charge - so I can't check it to help make my decision and I think since I closed my Equifax account my rating would have gone down because I started the ICS Learn course via a monthly payment plan.

Next March I will be in moving in with my boyfriend to a cheaper rental area, so I know that changing and moving my address again will also not help with my credit score. So this is why I'm wanting to sort my bank account situation out now before I move.

- Should I switch banks and transfer debt credit card debt to TSB now?
- Should I apply for a Balance Transfer CC first, then open a new account?
- Should I just keep things as they are and decide once I've moved and changed address?

I know that I'm not realistically going to be applying for a mortgage anytime soon and hopefully as time goes on my debt will reduce and I'll get a better paying job so I can clear my debt quicker and begin to save. I'm just a person that is conscious of my credit score and want to ensure that the decisions I make won't impact me greatly later on down the line, say in 3 years when I might be able to consider buying my first home. Plus credit scores confuse the hell out of me.

Not really sure what to do for the best? Can anyone give any sort of advice?

Much appreciated!

grumbler

lodgertotenant wrote: »

I've been banking with Natwest for about 12/13 years as my parents opened that account for me when I was younger, as they bank with Natwest. I need to sort out my finances and Natwest really isn't offering me anything - I have a select silver account, I hardly have holidays to take advantage of the insurance perk and I never use the TasteCard they've given me either, so I'm wasting £10 a month here.

Downgrade to a normal account ASAP and stop wasting. As simple as that.

I earn a low wage (NHS worker sadly) and live in an expensive area without getting a waiting allowance, so I'm unable to put money into a savings account. I'm therefore looking at switching to TSB's 5% AER Account, so I can get at least something back on what I earn whilst I'm trying to clear my debt. I can meet the requirements of the TSB account as I'm earn £22k and have 5 active direct debits.

What savings account and 5% AER if you have a debt to clear?
MSE article: Repay Debts or Save?

What's stopping me switching right now, is that I also want to move my credit card debt to a TSB 0% balance transfer credit card, as I have a £2500 debt with a Natwest Credit Card - which I'm paying interest on and this is causing a lot of stress at the moment - I also have a Zopa Loan and I've started to do a course with ICSLearn to hopefully help me get a better job that will pay me more. It's all going on here!

Is it TSB too by coincidence? If not, there is no any advantage in having a CC with the same bank. And why does this stop switching?

Anyway, I'm worried that opening a new account (if accepted) and closing a long standing bank account with Natwest , will effect my credit score

One credit search isn't a big deal, but a longstanding current account is worth keeping. If it's the switching bonus that you are after, then you can apply for a second account with the same Natwest, then switch the new account, not the old one.

so that I won't either be given a 0% balance transfer CC with TSB or I'm given one where I can't transfer all the debt so I'll end up with 2 credit cards which I don't want. All in all everything having a negative impact on my credit score basically.

Just close the new card if you don't want it. Credit searches effect doesn't last for more than 6 months.

Last time I checked on Equifax my score was on the border between good/excellent. I no longer have Equifax as I wanted to stop the £14 per month charge

Well done with stopping paying for the useless score. Most of essential information that you actually need is available for free.

Do apply for 0% or low-rate BT CC. Use 'soft' eligibility checker(s) first to eliminate unnecessary 'hard' credit searches.
Until you clear your debt I don't see much point in switching unless it's a monthly bonus (e.g. Halifax) or a switching bonus that you want.