Bad Credit Rating - Switch Banks or Not?

Eccentrica_Gallumbits

Hi everyone,

Straight to the point, I have a poor credit rating because of some defaulted payments on credit cards. I think I'll be clear by around March 2019, but I'm not 100% sure.

I tried to switch energy provider recently but was told I'd failed the credit scoring test (no idea why, I've been squeaky clean for a few years now and never behind with anything at all like rent, broadband/telecomms or utilities). I'm also trying to rebuild my credit score with one of those special credit cards with a low finance limit and enormous interest rates. I've lived where I am now since 2009, am on the electoral roll and so on.

About the one really good thing on my credit scoring is my lengthy relationship with my bank. I think it's about 1995 that I joined them, but it may be earlier. But they have been inflexible while I've had trouble with the Government benefits system (the bank refused me an overdraft from a Friday to a Monday on one occasion). I'm definitely ready to move somewhere else, and I've finally cleared my overdrafts on my 2 bank accounts, so now or soon would be a good time.

What I have now is 2 bank accounts and 1 instant savings account, and they're all linked on one website, so it's easy to switch money around. I'm assuming that this would be simple enough to set up with another provider.

Do you think I should stick with my bank (better the devil you know) now? Might moving now wreck my fragile credit score?

Or should I switch banks (do you think I would be accepted for a switch?) to take advantage of the free money on offer? Would any searches done on me by prospective new banks screw up my credit rating even further?

Thoughts, please? I thank you!

SnowTiger

Eccentrica_Gallumbits wrote: »

Straight to the point, I have a poor credit rating because of some defaulted payments on credit cards. I think I'll be clear by around March 2019, but I'm not 100% sure.

I tried to switch energy provider recently but was told I'd failed the credit scoring test (no idea why, I've been squeaky clean for a few years now and never behind with anything at all like rent, broadband/telecomms or utilities). I'm also trying to rebuild my credit score with one of those special credit cards with a low finance limit and enormous interest rates. I've lived where I am now since 2009, am on the electoral roll and so on.

Having missed payments and/or defaults on your credit file is a bad sign and is not 'squeaky clean'.

Rent and fixed-line telecom accounts don't usually appear on credit files, therefore anyone looking at your credit report won't know you pay your rent and phone bill on time.

Eccentrica_Gallumbits wrote: »

About the one really good thing on my credit scoring is my lengthy relationship with my bank. I think it's about 1995 that I joined them, but it may be earlier. But they have been inflexible while I've had trouble with the Government benefits system (the bank refused me an overdraft from a Friday to a Monday on one occasion). I'm definitely ready to move somewhere else, and I've finally cleared my overdrafts on my 2 bank accounts, so now or soon would be a good time.

What I have now is 2 bank accounts and 1 instant savings account, and they're all linked on one website, so it's easy to switch money around. I'm assuming that this would be simple enough to set up with another provider.

Do you think I should stick with my bank (better the devil you know) now? Might moving now wreck my fragile credit score?

Or should I switch banks (do you think I would be accepted for a switch?) to take advantage of the free money on offer? Would any searches done on me by prospective new banks screw up my credit rating even further?

My thoughts: you're on a low income and your credit history isn't very good. Why would a bank pay you £100 to switch to them?

One credit search will have a small and limited affect on how lenders view you.

No—well, not much—harm in trying.

If you do manage to open one account with another bank, it will be easy to open a second account with them.