Switching banks - second thoughts

egyptiancotton

I've been with HSBC for many years and have a current account that I've held for just under 10 years. I made an application to switch to TSB via MSE earlier this week but I'm having second thoughts; my long-term current account with HSBC is a positive factor on my credit report, and I'm mindful that I'd like to apply for a credit card soon, and also I'll be remortgaging in 2020.

Is it worth me committing to the switch or perhaps cancelling it? I may switch bank accounts again after a year or so to take advantage of another switching offer, but I'm mindful to build-up a decent term with a bank so that it'll work in my favour when it comes to remortgaging.

YorkshireBoy

I've probably made nearly £4K from switching offers over the years, but I still have my 38 year old account with one of my banks.

You can have more than one current account you know. Get a spare (or two!) ready for when such offers come along and switch that instead of your long held account.

Katiehound

Be aware that once the switch process has started you may not be able to cancel- it depends just how far it has progressed. If you are having second thoughts then you might need to be quick.

As said by YB many people switch but not their main bank a/c. You need a couple of 'donor' accounts. It is usually easiest to open one (or two) with your existing bank, keep them ticking over for a little while and wait for switching deals to be offered.

egyptiancotton

I chose the switch date as 23/11 so there's a bit of time before the switching process starts. I've passed the credit check and the account has been opened ready for the switch. A donor account sounds good - would you recommend this to be used as my primary account for salary, bills, etc., and then I keep my original account open but dormant?

Samsung_Note2

Just how much negative effect with switching a long term account really have...id imagine if the rest of your credit history is good,it would have little real effect.

After all why should we keep an old account thats not effective or simply gives a terrible service,simply as its been on credit file a long time.

Ive switched from Natwest after eight years as they were bloody awful...lets see what if any effect it has.

NineDeuce

Switching bank accounts will have hardly any effect on your credit rating if you are otherwise good.

If you have always successfully made repayments before then this will trump anything.

I have switched bank accounts around 5 times in the past 2 years and have made money from the free cash to no detrimental effect whatsoever.

badger09

lloydyyy wrote: »

I chose the switch date as 23/11 so there's a bit of time before the switching process starts. I've passed the credit check and the account has been opened ready for the switch. A donor account sounds good - would you recommend this to be used as my primary account for salary, bills, etc., and then I keep my original account open but dormant?

Most on here who have done several switches over the years would advocate keeping your long term account and setting up a donor account with sufficient activity on it eg DDs, SOs or whatever, to meet the switching incentive terms.

There is no need to move your salary, bills etc to the donor account. Just ensure there is enough in it to cover any DDs etc, and then pay in whatever you need to to meet the switch incentive.

If you have specified the account number of your long term account as the one to be switched, I would correct that asap. The switch process starts 7 working days before the actual switch, so you haven't got long to sort it.

Katiehound

I've kept my 'main' account now for 8 years having switched (with a measly! £50 ) from Intelligent Finance which had paid great interest but no longer.
However prior to that I'd been with NatWest for many many years- and they gave me nothing.

This time I have switched a Halifax reward that is no longer so rewarding! The previous switch was with a basic TSB Classic a/c- had it for a year and then 'groomed' it to go on to pastures new.

Puzzling out now how to find 9DDs! for next April- talk about a lot of head scratching required

Kim_13

With a switch date of 23/11 you can likely still cancel. When I switched to the Halifax I believe the deadline to cancel was the working day before the date 7 days prior to the switch, as the process starts 7 days before. After that elements of the switch can still be cancelled, but better to take action now if you'd prefer to switch a secondary/sacrificial account.

I closed my oldest account when I switched to the Halifax, but by then my next oldest account was over 5 years old and only a few years younger than the account I was closing. If you only have the one current account at present then I would cancel the switch and open a sacrificial account to switch.

In my case with the other established account remaining, closing the oldest hasn't negatively impacted the numbers Noddle throw out (though these numbers are not used by lenders so are a guideline only.)

egyptiancotton

Thanks for the advice, everyone. It's really appreciated. My credit history is excellent - no debts apart from mortgage and student loan, and I've never missed any payments for bills. The only reason why I'm hesitating about switching is because when it comes to remortgaging, and potentially other credit applications, length of time with a bank seems to count.

badger09 wrote: »

There is no need to move your salary, bills etc to the donor account. Just ensure there is enough in it to cover any DDs etc, and then pay in whatever you need to to meet the switch incentive.

Would I need to move a couple of bills to the donor account in order to meet the DD criteria?

badger09

lloydyyy wrote: »

Thanks for the advice, everyone. It's really appreciated. My credit history is excellent - no debts apart from mortgage and student loan, and I've never missed any payments for bills. The only reason why I'm hesitating about switching is because when it comes to remortgaging, and potentially other credit applications, length of time with a bank seems to count.



Would I need to move a couple of bills to the donor account in order to meet the DD criteria?

If the switching incentive you're after specifies DDs, then yes, move them to the donor account before the switch. Some companies let you change your DD source account online, some need a phone call, but be aware that it will take several days for the DDs to be set up.