Will setting up multiple new currents accounts affect my credit score?

harryj95

As we know, the best way to slow the devaluation of our money these days is to spread it around multiple current accounts and hopefully the cash LISA when it comes out.

However does anyone know if setting multiple current accounts at the same time period would impact your credit score? If so, what would be an adequate time frame between applications to minimise the impact on a credit score?

Cheers
Harry

Ben8282

Yes because of the multiple hard searches and multiple new accounts being opened.
Of course, your credit score is basically meaningless anyway.

isasmurf

harryj95 wrote: »

As we know, the best way to slow the devaluation of our money these days is to spread it around multiple current accounts and hopefully the cash LISA when it comes out.

However does anyone know if setting multiple current accounts at the same time period would impact your credit score? If so, what would be an adequate time frame between applications to minimise the impact on a credit score?

Cheers
Harry

Multiple credit check searches in a short period of time raises suspicion that you are attemping to build up debt and live beyond your means and so will be viewed negatively in most applications. Having the accounts running a while so you can show you have not used credit facilities, or have used them responsibly, may help in some applications depending on how the lender weights these factors in their own credit scoring algorithm.

Ben8282 wrote: »

Of course, your credit score is basically meaningless anyway.

That should perhaps say, your credit scores you can pay to see are meaningless.

TheShape

What do you want a good 'credit score' for?

I applied for 19 current account over a six month period including four over one weekend. Only one rejection for an HSBC Advance account but was offered their standard current account.

Wouldn't have done the above if i was about to apply for a mortgage and don't expect to be applying for any loans as I've got plenty of cash, hence the Accounts.

I used my good credit history to my advantage by opening the accounts that are benefitting me.

I would like to tell you that my credit 'score' has recovered but I then went and opened another four credit cards so it's too early to tell.

No point having a good 'credit score' if you don't use it!

EachPenny

isasmurf wrote: »

That should perhaps say, your credit scores you can pay to see are meaningless.

Yes, my free credit report shows a 'payment made' positive each month against each of my current accounts, despite not having an overdraft on any and never having made a 'payment'. My score dropped significantly as I reached the very low limit on one cashback credit card, and then rocketed when I was given a new card from elsewhere with a £4.5k limit. The 'score' we are given means very little in the real World.

TheShape wrote: »

I applied for 19 current account over a six month period including four over one weekend. Only one rejection for an HSBC Advance account but was offered their standard current account.

I applied for roughly the same number over a slightly longer time frame. I also was only rejected (online) for the HSBC Advance. When I went to the branch to complain the reason I was given was the monthly income figure I'd used was below the minimum*, it wasn't a credit score issue as such. A conversation about exactly what the T&C's said, and that I was willing to go to the Ombudsman, led to an appointment to open in-branch with the sales-rep making a phone call mid-application to have a computer block on the application removed. (*There was no minimum income requirement for the Advance account)

harryj95 wrote: »

However does anyone know if setting multiple current accounts at the same time period would impact your credit score? If so, what would be an adequate time frame between applications to minimise the impact on a credit score?

Maybe more important than impact on credit score in your case (given all the above comments) - the way to maximise your income from multiple current accounts is also to use the switching bonus technique. The bonus can be as much or more than a whole year of interest.

Opening any current account that does (or may again in the future) offer a switching bonus should really be done as a switch, rather than a clean account, otherwise you will miss out on the opportunity with that bank for many years to come.

So the total length of time you need to allow to open all the best interest paying current accounts should also take into account time to open and establish any 'donor' accounts you may need in order to benefit from the switching bonus opportunities available.

If you are in a hurry, start with the banks/accounts that have never offered a switching bonus.

datlex

It has definitely effected mine. However since I don't wish to apply for anything at this time it is not an issue.

beefturnmail

I think it helps if you refuse any overdraft offer