Current Accounts and Credit Files

Jonnyh31

Hello Everyone,

I'm looking for a little more information on how applying for the excellent current accounts Martin recommends can negatively affect my credit score.

I've recently paid off all legacy debts that were being serviced by an agreement with my creditors through the CCCS or Step Change as they're now known. It was an arrangement that wouldn't have been classed as a IVA.

I recently attempted to switch my Lloyds Silver account to First Direct only to later find out that First Direct had conducted a search and declined my application. A number of other banks have not done this with current accounts so I was slightly baffled and a trifle annoyed. This search has also plunged my score into the poor bracket and I'm now terrified of applying for anything else even though I desperately want to switch. Any thoughts or input would be much appreciated. Thanks in advance.

DCFC79

It won't affect your score, it will but no1 except you can see the score so in essence it's useless.

lufc7

I would expect no less from an application for a current account. All mainstream banks will conduct a search on your CRA files for info regarding previous credit conduct and to aid ID verification. As previously mentioned the score itself means nothing it is the credit history that is still on file that will be scrutinised. Please bear in mind first direct are notorious for being quite picky when it comes to acceptance. And as a final point if you have previous bad history with them and I would imagine HSBC or M&S, this will also be picked up during application through internal scoring. Hope this helps

[Deleted User]

Don't worry about it. It's one search.

If you get declined again, leave it for 6 months.

ratechaser

I've opened more than a dozen accounts since the start of the year, including some that will be used as donors only. FD was one of the last I got around to, and they were fine so if they are known for being picky, I guess a large number of applications can't be all that bad for your credit file?

lufc7

ratechaser wrote: »

I've opened more than a dozen accounts since the start of the year, including some that will be used as donors only. FD was one of the last I got around to, and they were fine so if they are known for being picky, I guess a large number of applications can't be all that bad for your credit file?

I imagine that if you are able to open that amount of accounts without issues that the rest of you credit report is pretty solid. I would only suggest that opening loads of accounts that maybe required a overdraft, may put more weight towards loads of successive searches being negative. I would expect it to be the same if applying for a loan, credit card or mortgage etc