Switch from FD to HSBC vs credit score

Richard_Z

Hello,

I've recently applied for the new HSBC Advance £150 + £50 incentive. The account has been succefully opened but I haven't switched yet amid fears of credit score downgrade. I was with HSBC before (my first accoun in the UK) for some time and then switched to FD in 2015 for the £125 incentive. I've recently applied for a personal loan (quite large amount) with FD which has been accepted. Considering I only live in the UK for 4 years, FD was quite fair to me in accpeting such large amount (although our household income is quite high), and I like their customer service. The only thing I prefer on HSBC is the app/internet interface. Also it looks like FD are less fussy. Considering I might apply for a personal contract hire on a new car within 2 months (large deposit 12+23 basis), if I switch to HSBC Advance, will I see my credit score affected in the way to see my PCH application refused?

Note: I've never held any accounts outside the HSBC group.

Thank you

bxboards

There is no such thing as a credit score.

It's a random number generated by people who want to charge you services to 'improve' the random number they generated for you.

FD and HSBC and no one else sees this 'score' as its been made up.

colsten

The process of switching does not affect your credit score (which is a meaningless number, anyway) as the switch will not require a credit search.

A full credit search was carried out when you applied for your HSBC account. This search will be reflected on your credit files.

Applying for current accounts will only have a negligible impact on your credit worthiness. A loan or an overdraft or other debt will have a far larger impact.

You can check your credit files whenever you like. A free one is Noddle, and Experian costs a couple of quid.

Richard_Z

Much appreciated for your advice.
Am I able to close the current account with FD considering I still have a large debt (i.e. recent personal loan) without any problems?

Richard_Z

bxboards wrote: »

There is no such thing as a credit score.

It's a random number generated by people who want to charge you services to 'improve' the random number they generated for you.

FD and HSBC and no one else sees this 'score' as its been made up.

Right, it makes sense. In that case, the finance institution which will provide the loan for the PCH will assess my case based on the last credit searches, is that right?
I've had 2 credit searches within 2 months (one of those referes to the HSBC advance in July, and the second one was done back in May), do you believe it will affect my ability to obtain the PCH contract?

bxboards

Richard_Z wrote: »

Right, it makes sense. In that case, the finance institution which will provide the loan for the PCH will assess my case based on the last credit searches, is that right?

I don't think they will care much at all about searches.

What they want to see is a history of no missed payments, regular payments and an ability to repay the loan. Being on the electoral roll (or not) will be one of the biggest factors in acceptance or rejection, and the loan size vs. your income will be another large factor. I would say that current account applications will have no impact at all worth mentioning.

Richard_Z

Right, considering I want to apply for a mortgage in 2020, should I keep my FD acount open, or should I do a full switch to HSBC Advance (joint salary to be paid into this account). Or should I keep both accounts open and ignore the incentive? I like FD to be honest, but internet banking and mobile app are much better in HSBC.

Thanks in advance.

maninthestreet

FD is part of HSBC.