New current accounts in quick succession?

gregc

My wife is planning to expand her current account portfolio somewhat, as a surplus has accumulated in an HSBC advance that isn't earning any interest right now. Accounts we are talking about are the 'reasonable interest on limited amount' current accounts, i.e. TescoBank, Bank of Scotland vantage, and Nationwide FlexDirect.

Q: Is there any realistic consideration for not applying for these 3 either simultaneously, or in quick succession? i.e. with credit checks problems etc, or some other consideration? (in a similar way to multiple credit card apps is a red flag).


We will fill them, and meet the requirements for them, won't be applying for overdrafts on them. We have recently remortgaged, and have no significant credit applications ahead. She has excellent credit rating as far as we're aware (and like to keep it that way!)

Thanks!

Shakin_Steve

Three applications will lead to three hard searches. I'm sure you know how lenders (they are lenders, overdraft or not) will view three in quick succession. You can put three grand into Tesco straight away and earn 3% on it. Then leave it a while before applying for another account.
If you apply for three at once, you run the risk of getting none of them.

TheShape

I made 16 current account and 2 credit card applications between June and Dec last year. I made 4 current accounts applications on one weekend, two Saturday, two Sunday. Approved for all accept HSBC Advance (offered their Bank Account instead).

I limited the number of applications for overdrafts so as not to significantly increase the amount of credit I have available.

If you've no likely need to apply for a mortgage or other credit there is little reason not to apply.

If by Credit Rating, you mean Credit Score then mine took a hammering. It's down month on month. That's not important though as it just means ClearScore, Experian etc judge account opening/credit searches as a negative when generating their score. The searches will drop off the credit file over time.

Shakin_Steve

TheShape wrote: »

I made 16 current account and 2 credit card applications between June and Dec last year. I made 4 current accounts applications on one weekend, two Saturday, two Sunday. Approved for all accept HSBC Advance (offered their Bank Account instead).

I limited the number of applications for overdrafts so as not to significantly increase the amount of credit I have available.

If you've no likely need to apply for a mortgage or other credit there is little reason not to apply.

If by Credit Rating, you mean Credit Score then mine took a hammering. It's down month on month. That's not important though as it just means ClearScore, Experian etc judge account opening/credit searches as a negative when generating their score. The searches will drop off the credit file over time.

Well....there's no arguing with that.

gregc

That's good going _TheShape_ (edited), well done!

I guess the impact I'm meaning when I say 'Credit Rating', is whether anyone we apply to whether it's subsequent bank accounts or credit cards will look at her negatively and turn her down.

I'm aware that credit card companies can turn you down just because you've made another recent application (which I can understand from their point of view, desperate for credit etc). But even though I'm aware a bank account application shows as a 'hard search', I was kind of imagining that wouldn't impact on a bank approving you for a bank account with no credit - it doesn't seem like a worrying behaviour from their point of view as it means I must want to give them cash?

I think I will exercise caution, maybe 1-2 per month, but we're only talking about 3 in total. The 'credit scores' you get shown may drop, but I understand this is only an indication, and not actually what banks you are applying to use - they will look at it details depending on what you're asking for.

TheShape

Hi OP,

I think you're responding to my post.

All I can offer is anecdotal evidence. I offer it only because when I started opening accounts I was hesitant, always expecting the next one to be declined. Only HSBC so far but I could just as well been turned down for that without all the other applications (it was application no 15).

My concern that applying for one account might prevent me applying for another was replaced by the concern that not applying meant missing out on the benefits. So now I just apply to the accounts I wish to have.

I have 3 further current account in my 'to open list' and intend to apply for two of these this weekend. Fingers crossed.

The 'hard searches' clearly haven't prevented me opening current accounts and I expect that when I next apply for a credit card, the major deciding factor will be the amount of credit already available to me.

noh

I would (and have done) apply for them all simultaneously or over a short period. In my experience applying for bank accounts with no overdraft has had no effect on my ability to gain credit or on the "credit score" from noddle.
Applying successfully for 8 credit cards in a short space of time and stoozing £28k did though!

gregc

TheShape wrote: »

Hi OP,

I think you're responding to my post.

All I can offer is anecdotal evidence. I offer it only because when I started opening accounts I was hesitant, always expecting the next one to be declined. Only HSBC so far but I could just as well been turned down for that without all the other applications (it was application no 15).

My concern that applying for one account might prevent me applying for another was replaced by the concern that not applying meant missing out on the benefits. So now I just apply to the accounts I wish to have.

I have 3 further current account in my 'to open list' and intend to apply for two of these this weekend. Fingers crossed.

The 'hard searches' clearly haven't prevented me opening current accounts and I expect that when I next apply for a credit card, the major deciding factor will be the amount of credit already available to me.

I was, apologies!

I think as far as anecdotal evidence goes, it doesn't really get much stronger than that for what I'm trying to work out, so thanks very much for sharing your experience. It has helped my decision making.