Change of current account and credit rating

carlos05

Hi Guys,

Hope everyone is ok. Just a quick question please, I have had my Barclays Current Account since 1998, however it does not offer me anything. I wanted to switch to Halifax current account which would give me £100 for switching and £5 each month.

I wanted to know if this will have any effect on my credit rating which is very good so I don't want to jeopardise this.

Thank you for any responses.

YorkshireBoy

If age of account didn't play a part in lenders' credit scoring models they wouldn't ask the question "how long have you been with your bank?". Just how much a part it plays is anyone's guess though!

So, simple answer...open another Barclays account and switch that instead. Then keep the old Barclays account ticking over until you've built up some (say 3-4 years) time with the new bank.

carlos05

Yorkshire Boy, thanks for your reply.

So I open another Barclays account, transfer my wages to that account and then transfer the new barclays account to Halifax?

chuckley

YorkshireBoy wrote: »

If age of account didn't play a part in lenders' credit scoring models they wouldn't ask the question "how long have you been with your bank?". Just how much a part it plays is anyone's guess though!

So, simple answer...open another Barclays account and switch that instead. Then keep the old Barclays account ticking over until you've built up some (say 3-4 years) time with the new bank.

I actually thought that was like a security question. for them to check your ID.

I genuinely can't see how it can be used as a scoring criteria as a 9 year account is no better than a 4 year one.

YorkshireBoy

chuckley wrote: »

I actually thought that was like a security question. for them to check your ID.

Many (most/all?) credit applications do ask for your bank account details for ID verification purposes (indeed they say that's the reason on the application form), but there's usually another, separate, question asked as to either it's age or, simply, time with bank.

I genuinely can't see how it can be used as a scoring criteria as a 9 year account is no better than a 4 year one.

As I said above, they must use it in their scoring algorithms, otherwise why ask the question?

datlex

Current accounts appear on your credit report. I know when I opened my TSB current account to take advantage of the 5% interest payable, I noticed a reduction in my credit score following the application. I believe this is because when they give you a card in theory you can go overdrawn and owe them money, even if it is not authorised.

DCFC79

datlex wrote: »

Current accounts appear on your credit report. I know when I opened my TSB current account to take advantage of the 5% interest payable, I noticed a reduction in my credit score following the application. I believe this is because when they give you a card in theory you can go overdrawn and owe them money, even if it is not authorised.

But don't take notice of the score as its not seen by lenders.

Typhoon2000

datlex wrote: »

Current accounts appear on your credit report. I know when I opened my TSB current account to take advantage of the 5% interest payable, I noticed a reduction in my credit score following the application. I believe this is because when they give you a card in theory you can go overdrawn and owe them money, even if it is not authorised.

Any sort of credit search lowers the number they give/sell you.