How many new bank accounts is too many?

YorkshireBoy

Fireflyaway wrote: »

...why do you need so many accounts?

For the OP, it's interest (probably 3-5 times the interest you're making on your "savings account").

For others it's:

Reward (for paying some DDs)
Cashback (for paying some DDs)
Free travel insurance
Roadside breakdown, mobile insurance, etc
Donors, for making £100+ a time from switching incentives
Prerequisites for high interest regular savers
Etc
Etc

TheShape

Fireflyaway wrote: »

Not sure about the impact on a credit score but why do you need so many accounts? I have a current account for bills, a spending account for fun stuff and a savings account. Why are you spreading it about isn't that confusing? I guess so long as they don't have overdrafts its fine.

The current accounts the OP has and wishes to apply for pay some of the best interest rates available and often have linked regular savings accounts, again paying some of the best interest rates available for 'savings'. Some providers also give incentives to switch current accounts to them so some people will have accounts that exist only to switch for an incentive.

I personally, have 13 current accounts and should have 14 when/if HSBC open me an account. This should reduce to 11 when I switch three of those. Some have overdrafts, some not. I have 11 savings accounts also.

lupine79

YorkshireBoy wrote: »

For the OP, it's interest (probably 3-5 times the interest you're making on your "savings account").

Exactly this, which was echoed by The Shape. I've made almost as much as the Santander annual interest just by leaving them for Nationwide, (£100 for switching, £100 for referring my friend), once the interest is paid on the £2.5k maximum balance (£125), I'll have surpassed the Santander offer by some way PLUS I've freed up the bulk of my savings to earn interest elsewhere. I guess in the grand scheme these are small amounts, but there is a famous saying about looking after the pennies...

Jlawson118

Some places don't even use credit scoring, and with saving accounts I think it's even less likely that they do.
I've had my First Direct account for years, but I just opened a credit card with them and it doesn't appear on my Equifax file whatsoever. it says it's open, but there's nothing on my searches of it there. I've also just opened an account with Yorkshire Bank and there's nothing there.

I think it only appears on your credit score as a search, is if you apply for a credit card or an account with an overdraft.

I applied for a HSBC student account early this year and that went on a hard search, I later swtiched it to Halifax Reward and that never came up as a search.

After that, on searches is the HSBC, then a phone contract in September, searched for by O2, two for Barclaycard when I signed up for them because I made a mistake on the first application, and then I tried to get a NatWest student account and they did a few hard searches but rejected me. Presumably because it offered an Overdraft..

So normal current accounts, depending on the bank, don't really use hard searches. I mean I've signed up for Halifax, Barclays and now Yorkshire Bank since May, so three accounts in the space of six months, hasn't shown up on my record

YorkshireBoy

Jlawson118 wrote: »

Some places don't even use credit scoring, and with saving accounts I think it's even less likely that they do.
I've had my First Direct account for years, but I just opened a credit card with them and it doesn't appear on my Equifax file whatsoever. it says it's open, but there's nothing on my searches of it there. I've also just opened an account with Yorkshire Bank and there's nothing there.

I think it only appears on your credit score as a search, is if you apply for a credit card or an account with an overdraft.

I applied for a HSBC student account early this year and that went on a hard search, I later swtiched it to Halifax Reward and that never came up as a search.

After that, on searches is the HSBC, then a phone contract in September, searched for by O2, two for Barclaycard when I signed up for them because I made a mistake on the first application, and then I tried to get a NatWest student account and they did a few hard searches but rejected me. Presumably because it offered an Overdraft..

So normal current accounts, depending on the bank, don't really use hard searches. I mean I've signed up for Halifax, Barclays and now Yorkshire Bank since May, so three accounts in the space of six months, hasn't shown up on my record

You're wrong on so many parts I don't even know where to begin!

lupine79

Do we know (with any degree of certainty) that if you already have an account with the provider, if the credit search for opening a second or third account with them is any softer?

Candyapple

lupine79 wrote: »

Do we know (with any degree of certainty) that if you already have an account with the provider, if the credit search for opening a second or third account with them is any softer?

I have opened second accounts this year with Santander, Halifax, Lloyds and Royal Bank of Scotland. None of them did a hard search in my Experian (£2 stat reports paid for every couple of months), Equifax (ClearScore) and Call Credit (Noddle) reports.

I think with Halifax and Lloyds there was an ID check or whatever you call it, but this is classed the same as a soft search, only I can see it on my credit report(s) and not any potential lenders.

lupine79

Candyapple wrote: »

I think with Halifax and Lloyds there was an ID check or whatever you call it, but this is classed the same as a soft search, only I can see it on my credit report(s) and not any potential lenders.

Thanks for all your help and advice - it's much appreciated. I have one final question and then I'm just going to take the plunge and open these new accounts. Is there any benefit to calling up vs opening an account online? I know ultimately it's the same process, but I just wondered if speaking to a fellow human who is fully aware you already have an account may be softer still on the search.

Fireflyaway

YorkshireBoy wrote: »

For the OP, it's interest (probably 3-5 times the interest you're making on your "savings account").

For others it's:

Reward (for paying some DDs)
Cashback (for paying some DDs)
Free travel insurance
Roadside breakdown, mobile insurance, etc
Donors, for making £100+ a time from switching incentives
Prerequisites for high interest regular savers
Etc
Etc

Yes because I have nothing in my savings account!

33q

Not happy. Just been turned down for a Nationwide Plus account due to my credit score. 517/999 according to Experian!

I have not missed payments on my mortgage or credit cards. I have a healthy income from BTLs and my pension. Bank accpounts are all healthy. Just paid off one credit card in full from savings. Just paid off a chunk of mortgage.

I have however applied for a number of accounts this year. Really surprised as i have several Nationwide accounts

How can I fix it?