Many accounts, will that affect my credit score?

Morus193

Hello, recently I have opened a lot of current accounts to maximise interest earned, none of the accounts opened have any overdraft, does opening many account have a big impact? My logic said that surely it doesn't make much difference as I have used all the account to save money rather than use any overdraft. Any information would be truely appreciated as I plan on applying for a mortgage in around 2 years. Thanks.

[Deleted User]

Will it affect your score? Probably.

But current accounts are unlikely to concern lenders, which is what matters.

National_Debtline

Hi Morus193,


It is a difficult question to answer, because credit checks are run by a computer. And whilst a mortgage application will take more than a credit check into consideration, the real question would be, do these accounts make you more or less credit worthy going for a mortgage?


As I say, it is all determined by a computer, but I think it may raise concerns that by opening a lot of current accounts it gives you a lot of potential access to credit (if you were to apply for overdrafts). If the accounts are being used for savings, would a savings account be better? It may be worth considering talking to an independent mortgage broker to find out more (just be careful of fees).


Laura
@natdebtline

Morus193

Thanks a lot for the replies I really appreciate them!

I am reluctant to consider savings accounts because the returns on current accounts seems to be much higher so could help me build up a pot for the mortgage but I will be cautious now I know "potential" credit may be taken into consideration. Thanks!

adindas

Morus193 wrote: »

Hello, recently I have opened a lot of current accounts to maximise interest earned, none of the accounts opened have any overdraft, does opening many account have a big impact? My logic said that surely it doesn't make much difference as I have used all the account to save money rather than use any overdraft. Any information would be truely appreciated as I plan on applying for a mortgage in around 2 years. Thanks.

I do not see any noticeable impact of having multiple accounts and credit cards to credit score. Even if you cancel some of your accounts and / or creditcards there is very little chance have a noticeable impact on your credit score.

They cannot check it whether you are using your current ACs as saving accounts because in credit balance is not showing on the credit report. I understand you do not have overdraft facility.

if it is too many Bank ACs and you are unlucky to get a novice inexperience, lazy underwriter assessing your application they might link you to money laundry.

If they want to spend more time on your case they might refer you to a more senior colleague, who might be contacting you for explanation, otherwise they will follow the easiest and least risky decision "reject".

But the case like this is rare, only if you are unlucky to get this sort person assessing your application. From reading this forum regularly I believe many people get mortgage while holding multiple accounts and multiple credit cards. I know a person who manage to get mortgage easily while having more than a dozen current accounts and Credit-cards.

Lith

I have around 10 current accounts and 6 credit cards.

(use 3 current accounts) - (use 2 credit cards)




My score? i couldn't give a toss what it says as i have the cards and the current accounts.


Relax, don't lose sleep.

Geoff1963

Having several bank accounts, means you can get out a lot of ATM money per day, even if you have to swap it around using mobile banking. That might be useful, and it might also be what makes lenders nervous.
Another advantage is for when a particular bank's computer system fails ; if several fail at the same time, then the country has collapsed.

sheff6107

If you are going to a mortgage you want to keep it simple. It's difficult enough when they lose stuff and ask stupid questions as it is. Giving them statements from multiple accounts will just delay things.

Nothing to do with credit reports, but I'd close all but one when actually applying for a mortgage or else you'll be tearing your hair out. Mortgage applications nowadays are worse than the 12 Labours of Hercules.

Geoff1963

Mortgage applications nowadays are worse than the 12 Labours of Hercules.

Before too long, banks will start offering 100 % mortgages - as in, you need a 100 % deposit.