Does opening a current account negatively impact your credit score?

emoshun

I have recently opened a current account with my partner and have just received an update from experian informing me that my credit score has now gone down by 73 due to this. I have not opened credit cards on this account nor an overdraft. Does anyone know if this is normal or do I need to check further?

Thanks

[Deleted User]

Simply breathing affects your credit score.

Fortunately, it is a large pile of fictional unicorn poo that is not seen by anyone and doesn't reflect any particular lenders view of you. So ignore it.

GingerBob_3

The credit score is broadly indicative of how lenders (and non-lenders) view you. If the score has gone done due to you opening a current account, it's a safe bet that this will be a factor taken into account if you apply for credit.

Thrugelmir

Normal. Movement in score simply highlights a material change. As what the file doesn't tell anyone is why. Given time your score will return.

Dobbibill

Yes - opening any line of credit will cause the CRAs to drop your score........your score however is pretty irrelevant, only you and the CRA see it, the CRA create it; and it may mean something more significant if they actually did any lending themselves.

However they don't do lending, neither do they share 'your score' with any lender.

When you apply for credit with anyone they will look at all the data on your CR - they will see you have opened a new current account, some lenders may think 'oh, they've opened a new current account' others may think 'oh gosh, they've opened a new current account, are they intending on opening lots of credit and doing a runner'

Don't worry, just use your account for it's intended purpose.

boo_star

Dobbibill wrote: »

Yes - opening any line of credit will cause the CRAs to drop your score........your score however is pretty irrelevant, only you and the CRA see it, the CRA create it; and it may mean something more significant if they actually did any lending themselves.

The OP didn't open a new line of credit though, they opened a current account without an overdraft.

It'll probably affect their credit score with the CRAs but it won't make the blindest bit of difference from a lenders perspective.

Dobbibill

Because a current account can have an overdraft it is deemed a credit facility which is why you are credit checked to have one.Even if they don't choose to have it on opening the account, it can still be added later.

I agree will make no difference to future lenders as will the credit score.

boo_star

Dobbibill wrote: »

Because a current account can have an overdraft it is deemed a credit facility which is why you are credit checked to have one.Even if they don't choose to have it on opening the account, it can still be added later.

I agree will make no difference to future lenders as will the credit score.

Lenders don't view it as credit unless it has an overdraft.

I should know, I worked in a bank department that had discretion to lend over and above what the system recommended.

bravotango

Yep, opening a current account will have a "slight" negative impact to your credit score (even if you don't take no overdraft), but as so many people have said on these forums, these credit scores don't mean a lot, as no one else sees them apart from the CRAs and you.

However, lenders WILL see a credit application search carried out on your Credit Report when the new current account application took place.