Boosting Bank Internal Score?

MoneySaver123

Just wondered if having multiple products like home and car insurance from your main bank boosts your overall internal score at all?

I'm with NatWest.

[Deleted User]

It simply gives them more information to base a decision on.

MoneySaver123

Thanks. I'm just debating whether it would be better to get insurance with my bank albeit it more expensive, as I want to try and get a credit card or loan from them in a few months after I've built up a decent score.

Chappaz

MoneySaver123 wrote: »

Thanks. I'm just debating whether it would be better to get insurance with my bank albeit it more expensive, as I want to try and get a credit card or loan from them in a few months after I've built up a decent score.

I don't think it's possible to say with sufficient certainty to suggest it's a good idea. Maybe it does help, maybe it doesn't.

In my opinion I'm not sure it would make a difference as they'll still run a hard credit search on your file and run an algorithm on that. If your credit file is good enough, you'll be automatically accepted. If it isn't good enough, I doubt having any extra products with them would change that.

It's primarily a measurement of risk. Does having more products with them make you look less risky? Not really. They can assess your credit history based on credit from any lender and they're likely to look at the positives and negatives equally.

A history of good payments with them is no different to a history of good payments with another lender in terms of risk assessment, nor are any missed payments or defaults any less damaging because they're with your bank instead of another lender.

There is a degree of customer profiling involved to see if you'll be a profitable customer, but just because you have home and car insurance with them, it doesn't prove that you're anymore likely to rack up profitable interest on your credit card and loan.

Why do you need a credit card and loan anyway?

DCFC79

MoneySaver123 wrote: »

Thanks. I'm just debating whether it would be better to get insurance with my bank albeit it more expensive, as I want to try and get a credit card or loan from them in a few months after I've built up a decent score.

You wont know how much its improved by nor how long it will take.

MoneySaver123

Thanks both, I appreciate your comments and that makes sense about the 'risk assessment' actually, I didn't think about it like that.

I'm ok the process of rebuilding my credit and wanted to get a mainstream credit card to transfer over to and then ultimately get a mortgage with the bank and my logic was that a higher internal score would allow me to fast track this process...potentially!

ashp_2

MoneySaver123 wrote: »

Thanks both, I appreciate your comments and that makes sense about the 'risk assessment' actually, I didn't think about it like that.

I'm ok the process of rebuilding my credit and wanted to get a mainstream credit card to transfer over to and then ultimately get a mortgage with the bank and my logic was that a higher internal score would allow me to fast track this process...potentially!

You should get a mortgage based on the best deal available. Do not assume your bank will give you the best deal or accept a mortgage application.