Will opening more than 1 Current Account affect my credit rating?

xhunter08

I am looking to open second Current Account as my current bank doesn't provide option of downloading pdf statement from my online account.

1. I read somewhere that opening more than 1 Current Account affects credit rating? Can anyone clarify this?


To keep it simple and just have 1 Current Account, I am thinking of downgrading my existing Current Account to Basic Account (Cash) and opening a new Current Account with new bank. I want to keep existing Account because it is linked to many institutions.

2. Has anyone downgraded their Current Account to a Basic one? Or is it even allowed?


Thanks for reading my thread and all future replies

[Deleted User]

No1) I don't know. I have 11 current accounts at the moment (had more), never seems to affect my credit rating but then again I'm not normally after credit.

No 2) Yes, you can, I have.

Nebulous2

Lots of people on here have multiple bank accounts. Two is nothing to be concerned about. Any impact on your score will be limited, wont last for long and doesn't matter anyway.

Some bank accounts offer cash incentives to switch to them. That involves closing your existing account and transferring all the connections across using the switching service. Many of the payments need you to switch an account with two live direct debits. What a lot of people do who want to keep their bank account is open a second account, often with their own bank, move two direct debits across, then after the direct debits have been taken they switch that one for the bonus.

Don80

xhunter08 wrote: »

I am looking to open second Current Account as my current bank doesn't provide option of downloading pdf statement from my online account.

1. I read somewhere that opening more than 1 Current Account affects credit rating? Can anyone clarify this?[/SIZE][/FONT][/I]

Opening current accounts does record a credit search, too many, too quickly is bad, but spaced out won't matter. If you are consistently over an overdraft limit then that might be recorded. Otherwise this is not an issue.

I currently have 3 accounts, my main one with the Bank of Scotland, and TSB for bills, and a Halifax one I am going to start using for bills instead of the TSB one. I'm planning switching the TSB one out elsewhere for cash :-)

xhunter08 wrote: »

To keep it simple and just have 1 Current Account, I am thinking of downgrading my existing Current Account to Basic Account (Cash) and opening a new Current Account with new bank. I want to keep existing Account because it is linked to many institutions.

2. Has anyone downgraded their Current Account to a Basic one? Or is it even allowed?

You can, though why would you want to? Many banks offer good current accounts now, if you are not happy - switch. It's unbelievably easy, and any institutions get moved for you. Payments made using your old account details get redirected for you. It's so easy!

colsten

Don80 wrote: »

Opening current accounts does record a credit search, too many, too quickly is bad, but spaced out won't matter. If you are consistently over an overdraft limit then that might be recorded. Otherwise this is not an issue.

It only matters, potentially, if you are planning to apply for major credit (mortgage, large loan, credit card) within the next 6-2 months.

Don80

colsten wrote: »

It only matters, potentially, if you are planning to apply for major credit (mortgage, large loan, credit card) within the next 6-2 months.

Very true, what I meant but failed to say clearly - thanks :beer:

xhunter08

Don80 wrote: »

Opening current accounts does record a credit search, too many, too quickly is bad, but spaced out won't matter. If you are consistently over an overdraft limit then that might be recorded. Otherwise this is not an issue.
I currently have 3 accounts, my main one with the Bank of Scotland, and TSB for bills, and a Halifax one I am going to start using for bills instead of the TSB one. I'm planning switching the TSB one out elsewhere for cash :-)

I might be applying for big loan within a year so just to be on the safe side I am not applying for second Current Account. I was in the process of applying for second Current Account with my current bank (for simplicity) today, I saw in T&C that they will perform credit search and also store my updated information in the bank. I am not comfortable with that as my income is very weak at the moment and I have got mortgage with the same bank. And I also don't feel ok with bank being up to date with my personal finance.

I needed second Bank Account just to be able to spend with a debit card. I just remembered today that I've 1 active Basic Account from another bank (had to open 3 years ago just to use their storage service). I will be using that Basic Account for spending and existing Current Account for paying bills. In that way, I can clearly separate 2 different nature of expenditure in efficient manner.

Don80 wrote: »

You can, though why would you want to? Many banks offer good current accounts now, if you are not happy - switch. It's unbelievably easy, and any institutions get moved for you. Payments made using your old account details get redirected for you. It's so easy!

Yeah, keeping my existing Current Account is good idea. I am familiar with switching. I switched to my existing Account from Natwest. I have now found solution (as stated in my previous comment).