Regularly switch current accounts

w00519772

I have five bank accounts to benefit from 5% interest rates. I regularly (about every switch months) switch one of the accounts to another account.

I want to switch my TSB account to M&S Bank. My research tells me that opening new current accounts "constantly" (every six months or so) will not have an effect on my credit score as long as I have no credit card with the provider I am switching to. Is that right?

The articles I read tend to assume that you have one current account and are switching to another. None seem to assume that I am switching one of many current accounts to another current account.

I have checked my Experian credit score and it is around 930 (Good). It use to be excellent (around 997) back in 2014. However, I have a mortgage now so that maybe why it is not excellent?

Q1) Is it "ok" to regularly switch current accounts assuming that I have no credit card and overdraft with the new provider?
Q2) Does a mortgage have a slightly negative effect on the credit score? I read somewhere that it can have a positive effect so I am unsure.

I realise the credit score is not always the best indication of credit worthiness (I see it is criticised a lot on here). However, it still would be helpful if someone could answer either/both of my questions.

[Deleted User]

The scores are made up - so definitely start by ignoring them.

Switching accounts regularly could cause problems if you have a thin file, as it can be interpreted as instability. But it's seen as part of a wider picture, and if you have a solid background, then it shouldn't be an issue.

Whether you have cards with the current account provider is irrelevant.

A mortgage, if well managed, demonstrates you can handle credit.

w00519772

Deleted_User wrote: »

The scores are made up - so definitely start by ignoring them.

Switching accounts regularly could cause problems if you have a thin file, as it can be interpreted as instability. But it's seen as part of a wider picture, and if you have a solid background, then it shouldn't be an issue.

Whether you have cards with the current account provider is irrelevant.

A mortgage, if well managed, demonstrates you can handle credit.

What do you mean by thin file? The only things on my file are when I open accounts e.g. current account, mortgage, credit card etc.

[Deleted User]

Thin file refers to someone with a lack of credit history. If you have a few years of managing credit accounts, then you don't have a thin file.

w00519772

Deleted_User wrote: »

Thin file refers to someone with a lack of credit history. If you have a few years of managing credit accounts, then you don't have a thin file.

Thanks. I have had credit cards for about fifteen years and have always paid on time except when I went through a period of Stoozing (about 18 months).

On that basis I should be ok to regularly (every six months or so) switch?

[Deleted User]

I don't think it's any cause for concern.