Effect on Credit Score of opening multiple current accounts?

splatt30

We moved house 6 weeks ago and unfortunately first direct wouldn't give us a new offset mortgage on the new property.

For the last 8 years I haven't had to think much about what rates our money was earning as it all offset the mortgage, and as a higher rate tax payer that was always the best return.

Now I am having to face moving money through different accounts to maximise returns.

I have kept my individual first direct account and opened their 6% regular saver.
We have moved our joint account to Santander 123 (our CB on direct debits more than covers the £5 fee and we will sit £20k in there).
I have also opened a TSB plus account and their regular saver both at 5%.

I have a further £8-9k to put somewhere, and am now contemplating opening a Lloyds account and a Tesco account but am a little worried as to the effect of opening so many new accounts over a short period of time will have on my credit score. Am I best to leave it a month or so for further current account application?

grumbler

Have a look at this recent thread: no switchin so now i'm !!!!!in !

ceredigion

Dose your "Credit Score " really matter ?
Genuine question

colsten

This Q gets asked again and again. The answer is nobody here knows for certain but everyone appears to agree that applying for current accounts, especially if they have no overdraft, seems to have a minimal, if any, effect on your ability to obtain credit. If you don't need a mortgage or a loan in the next 6 or so months, it definitely won't matter.

Note that the credit score as assigned by a CRA is a pretty meaningless number that no lender will ever use anyway.

YorkshireBoy

Tesco should be way down your account opening order...after 3 x Nationwide FlexDirect (£7.5K @ 5%), 3 x TSB Plus (£6K @ 5%), and 3 x Club Lloyds (£15K @ 4%). A secondary benefit is that you'll share any perceived credit rating impact.

splatt30

When I tried to open a second TSB this morning online, it said they couldn't offer a second account at the moment. Nationwide - I believe you only get 5% for 12 months but might look at it.

I am assuming your suggestion of x3 accounts with each is based on 1 for me, 1 for hubby and 1 joint. Unfortunately, as my husband is a stay at home dad with no income, I doubt he would be accepted for these accounts.

I have looked through the suggested previous stream and think I will crack on with the next application in a couple of weeks.

Anthorn

Overall, no effect whatsoever if there is no overdraft facility. If there is an overdraft facility then that's added to your overall available credit.

The main effect with current accounts is that chopping and changing affects the life of the accounts and can result in accounts which have a very short life and generally disregarded by lenders as not providing sufficient history behind them to use to make a credit decision.

YorkshireBoy

splatt30 wrote: »

Nationwide - I believe you only get 5% for 12 months but might look at it.

That's correct, but they also have a cracking regular saver at 5%, which takes £500 a month. One each, on top of the FlexDirects, would see a lot of money making 5% AER! Likewise with TSB.

I am assuming your suggestion of x3 accounts with each is based on 1 for me, 1 for hubby and 1 joint. Unfortunately, as my husband is a stay at home dad with no income, I doubt he would be accepted for these accounts.

You assume correctly. But you may be surprised at what's possible for him...especially if you apply in branch.

splatt30

Nationwide it is!! Hadn't noted the regular saver!!
Thanks

colsten

A Nationwide FlexClusive RS drip-fed from 2 Tesco current accounts is a brilliant home for £6,000.

Dan83

Hi,
I opened accounts with nationwide, TSB, lloyds and tesco in December with no problems.