Is it bad to have multiple bank accounts?

eloy7

Is it bad to open several bank accounts to try them? I mean is there any drawback to keep several bank accounts idle? It will be easier if deciding to switch to one of them.

grumbler

You hardly can compare anything by having idle accounts. What's the point? You can find pretty much all information you want without opening accounts.

And by opening accounts sporadically you lose the bonuses that you can get by doing this systematically.

Ken68

Hi Eloy, Have just been denied credit by my new energy provider, almost certainly because of the multiple bank account applications.
Managed to get this altered but looks like the end of incentive chasing.

Doctor_Duke

Hi Ken, same for me but I'm not sure if it's actually the multiple searches for accounts rather than the accounts themselves. I'm going to break from applying for 6 months and will monitor my status using soft search quotes.

Anthorn

No penalty and no advantage to having multiple bank accounts. But applying for them carries a hefty penalty if you do it twice or 3 times maximum within a short period because for each application you get a hard credit search on your credit history. The effect of this can be seen in the foregoing posts. Basically, there should not be more than two opened in a six months period.

The other penalty is if you don't leave at least one bank account preferably with an overdraft facility on your credit history. Like wine, the effect of a bank account on your credit history improves with age.

Yorkshire_Pud

Is it bad to ask multiple questions on a forum and rarely give any follow up feedback or engage with the posters that bother to reply?

bigadaj

Anthorn wrote: »

No penalty and no advantage to having multiple bank accounts. But applying for them carries a hefty penalty if you do it twice or 3 times maximum within a short period because for each application you get a hard credit search on your credit history. The effect of this can be seen in the foregoing posts. Basically, there should not be more than two opened in a six months period.

The other penalty is if you don't leave at least one bank account preferably with an overdraft facility on your credit history. Like wine, the effect of a bank account on your credit history improves with age.

Not true and potentially misleading.

I applied for six accounts in two months with no problems, though I didn't apply for an overdraft on any of them and so hadnt applied for credit, which is obviously different to a credit card.

There are many advantages to applying for multiple accounts as pointed out continuously in this site, in credit interest at several times the rate available from the best savings accounts, switching bonuses, access to regular savers at relatively high interest, and additional perks such as increased cashback, cinema tickets, insurance etc etc

Anthorn

bigadaj wrote: »

Not true and potentially misleading.

I applied for six accounts in two months with no problems, though I didn't apply for an overdraft on any of them and so hadnt applied for credit, which is obviously different to a credit card.

There are many advantages to applying for multiple accounts as pointed out continuously in this site, in credit interest at several times the rate available from the best savings accounts, switching bonuses, access to regular savers at relatively high interest, and additional perks such as increased cashback, cinema tickets, insurance etc etc

I'll throw that right back at you. What you're telling people is that they can apply for six accounts over a two-months period all of which have the potential of a hard credit search for each. At best your post is highly irresponsible.

It's common knowledge on MSE and elsewhere that two hard credit searches, three if you're lucky, is the maximum in a six months period! More than that and you risk rejected applications and the imposition of higher APRs.

It's not only me saying two in six months though. Experian says that. Clearscore says that. Equifax says that if you're subscibed to their credit score. Lastly Noddle says that too if you're subscibednto their credit score.

eskbanker

Anthorn wrote: »

I'll throw that right back at you. What you're telling people is that they can apply for six accounts over a two-months period all of which have the potential of a hard credit search for each. At best your post is highly irresponsible.

It's common knowledge on MSE and elsewhere that two hard credit searches, three if you're lucky, is the maximum in a six months period! More than that and you risk rejected applications and the imposition of higher APRs.

It's not only me saying two in six months though. Experian says that. Clearscore says that. Equifax says that if you're subscibed to their credit score. Lastly Noddle says that too if you're subscibednto their credit score.

There is clearly no such thing as a maximum number of credit searches permissible over a six month period! Obviously the more credit searches one carries out then the more risk there is that this may be seen as significant by some potential lenders but it's nothing like as simplistic as two or three are OK but more aren't, as there are way too many variables in this process for the crude rule of thumb that you appear to be suggesting and it's fatuous to generalise that everyone is seen in the same light.

Please post links from the CRAs to support your claim to the contrary.

murmeltier

It's worth mentioning that not every current account application necessarily results in a hard search (assuming you don't ask for an overdraft when applying). I've opened numerous current accounts over the last 12 months, and the only organisation that without fail would perform a hard search for every single application (despite a previous relationship) were LBG.

M&S were the only other bank that would also do a hard search.

Nationwide, Santander, YB, TSB - no search whatsoever recorded as far as I can tell.

Doctor_Duke

murmeltier wrote: »

It's worth mentioning that not every current account application necessarily results in a hard search (assuming you don't ask for an overdraft when applying). I've opened numerous current accounts over the last 12 months, and the only organisation that without fail would perform a hard search for every single application (despite a previous relationship) were LBG.

M&S were the only other bank that would also do a hard search.

Nationwide, Santander, YB, TSB - no search whatsoever recorded as far as I can tell.

I agree that LBG search for virtually you asking to breathe but some of your list do perform a hard search for a current account including Santander and YB. Certainly did me and I didn't ask for an overdraft. Natwest are doing so now also and this seems to be a general trend of most lenders and I have a lot of accounts!!