Effect on Credit Score of opening multiple current accounts?

DCFC79

tg99 wrote: »

Not looked at any full credit reports but I did see that my Experian credit score dropped to low 800s from its usual high 900s when it was last updated which was just after I had opened 10-15 current accounts (no overdrafts) in the space of a few weeks for donor account / switch incentive purposes. No other change in my circumstances so I can only think the drop off was due to this. Will be interesting to see if it returns to 'normal' after 6 months or so.

Maybe it will but your score isn't seen by lenders, you could say it's a reflection of your credit history but people could have defaults and still have a score of 850 say.

colsten

Just to illustrate how meaningless credit scores are: My Noddle score as of today is 5/5. Clearscore say I have 453 out of 700. Clearscore only list 3 hard searches in the last 12 months.Noddle have 11 public searches.

tg99

colsten wrote: »

Just to illustrate how meaningless credit scores are: My Noddle score as of today is 5/5. Clearscore say I have 453 out of 700. Clearscore only list 3 hard searches in the last 12 months.Noddle have 11 public searches.

I've never looked at any others as inclined to agree they are relatively meaningless and have never been turned down for credit.....Experian comes free with Barclaycard so worth checking if you have an account with them.

tg99

DCFC79 wrote: »

Maybe it will but your score isn't seen by lenders, you could say it's a reflection of your credit history but people could have defaults and still have a score of 850 say.

.

I know. My point is that if the fall off is due to all my current account applications then one might expect the score to return to around its previous level after a period of time has elapsed assuming no other material changes to my circumstances / new applications for credit etc.

colsten

tg99 wrote: »

I've never looked at any others as inclined to agree they are relatively meaningless and have never been turned down for credit.....

same here. I suppose most people who have oodles of current account to save money in don't have much need for credit.

I still get regular offers for pre-approved credit cards, and Barclaycard have just upped my CC card limit without me asking.

tg99 wrote: »

Experian comes free with Barclaycard so worth checking if you have an account with them.

I had no idea they did - brilliant, thanks, have requested access now.

Eco_Miser

colsten wrote: »

same here. I suppose most people who have oodles of current account to save money in don't have much need for credit.

But a credit card or two, especially at 0% can come in handy.

colsten wrote: »

I still get regular offers for pre-approved credit cards, and Barclaycard have just upped my CC card limit without me asking.

Nationwide have just offered me a 20% increase in my credit limit - since I've rarely if ever used more than 10% of the limit I won't bother.

splatt30

Just an update in case anyone else comes across this thread with the same question.
Over a 6 is week period from the end of November to the beginning of January I
- opened and transferred out joint account to Santander
- opened individual current accounts with Nationwide and TSB and their associated regular savers
- opened a current and savings account with Tesco
- opened a 0% on purchases Barclaycard

My noodle score has not changed, at all, though the Barclaycard is still not showing on there.

steve65e

Unless you are going to apply for another mortgage soon then I wouldn't worry about it.

18 months ago I had only one bank account and fairly bad credit. Now have 15 accounts all opened fairly easily, and 4 interest free credit cards - I seem to be accepted and rejected randomly. I think it's mainly about whether the lender thinks they can profit from you in the long run.

enthusiasticsaver

I have applied for a Lloyds Club account, BOS Vantage account, FD account and Tesco current account in the last three weeks. My Noddle score still says 5/5 but next report due out in 6 days so will see whether it changes then as it does not show the new accounts yet. As I don't need credit it is irrelevant anyway.

YorkshireBoy

enthusiasticsaver wrote: »

I have applied for a Lloyds Club account, BOS Vantage account, FD account and Tesco current account in the last three weeks. My Noddle score still says 5/5 but next report due out in 6 days so will see whether it changes then as it does not show the new accounts yet. As I don't need credit it is irrelevant anyway.

My most recent current account and credit card application frenzy started in December 2014 and ended around April 2015.

When I began, my Noddle score was 4/5. It actually climbed to 5/5 mid way through the application frenzy! Then dropped back to 4 in mid 2015, and from August 2015 (with no other activity for several months, other than reducing credit card balances) it fell to 3/5, where its been ever since.

My conclusion?...they've somehow re-modelled their scoring algorithm and are 'marking down' those with 35 current accounts and 10 credit cards.