I've been using a personal current account for business for years. Now what do I do?f

MovingForwards

Only thing I would add to the above is check the bank are willing to take on you as an account holder for what ever business it is. Some banks restrict what type of business they will allow (obvious one is gun trader/seller but just so you get what I am whaffling about

Anthorn

colsten wrote: »

If you switch you existing account, you will lose all record of that account in your credit file. So no lender can see that you held an account in good stead for donkey's years. Long-term risk is a factor lenders will consider in their assessment of applications.

This may or may not matter to you but if it does, or may, matter, you can easily handle it:

1. keep your existing current account
2. set up a second current account with the same bank
3. add any DDs (that might be required for the switch bonus) to the second account
4. switch that second account as soon as you have a debit card for it and it has requisite DDs etc

Not true; If the account is closed it will change to a settled account and be maintained in the CRA file for up to 10 years and the history of the account will be preserved.

colsten

Anthorn wrote: »

Not true; If the account is closed it will change to a settled account and be maintained in the CRA file for up to 10 years and the history of the account will be preserved.

This does not match with my experience. All my switched current accounts (of which I have many) vanished almost immediately from my credit files. Which CRA shows closed accounts for up to 10 years, which CRA preserves the history, and which lender(s) are checking for closed accounts?

eskbanker

colsten wrote: »

This does not match with my experience. All my switched current accounts (of which I have many) vanished almost immediately from my credit files. Which CRA shows closed accounts for up to 10 years, which CRA preserves the history, and which lender(s) are checking for closed accounts?

Out of curiosity, I just had a quick look at my credit files and both MSE/Experian and ClearScore/Equifax show the four current accounts (including opening dates and payment histories) that I switched (from) in early 2016, all of which were LBG ones if that makes any difference. They are within separate 'closed account' tabs from the open account info though....

soulsaver

MovingForwards wrote: »

Only thing I would add to the above is check the bank are willing to take on you as an account holder for what ever business it is. Some banks restrict what type of business they will allow (obvious one is gun trader/seller but just so you get what I am whaffling about

Yep, many adult gay website operators .. are sole traders..

Notnow

Thanks to everyone for all your help. I am surprised that it's recommended to have more than one current account, I would have thought that would have got you thrown straight into the dodgy box for applications. I understand spreading your money is wise but surely after the whole recession, reforms and banks being bailed out, nothing like that could ever happen again?

eskbanker

Notnow wrote: »

I am surprised that it's recommended to have more than one current account, I would have thought that would have got you thrown straight into the dodgy box for applications. I understand spreading your money is wise but surely after the whole recession, reforms and banks being bailed out, nothing like that could ever happen again?

Not sure I see the connection - what do you see as dodgy about individuals holding multiple current accounts and why would you associate this with the corporate misdemeanours of the credit crunch era?

Wellard_Mann

Notnow wrote: »

Thanks to everyone for all your help. I am surprised that it's recommended to have more than one current account, I would have thought that would have got you thrown straight into the dodgy box for applications. I understand spreading your money is wise but surely after the whole recession, reforms and banks being bailed out, nothing like that could ever happen again?

My concern is more about bank IT problems - of which TSB is the latest but not only example - than actual bank failure. I prefer to have the security of at least one additional account to enable me to access funds if this happens.

Notnow

eskbanker wrote: »

Not sure I see the connection - what do you see as dodgy about individuals holding multiple current accounts and why would you associate this with the corporate misdemeanours of the credit crunch era?

I just thought that most people had one account and if you had multiple ones they might ask why. The connection with the recession was people saying it's wise to spread your money in case something happens to a bank. I just can't imagine a bank going bust causing anyone trouble with all deposits of up to £80,000 or whatever it is covered by the government .I would have thought there was no need to spread money with those new rules.

p00hsticks

I think many people have more than one bank account now - in fact, going through the ID verify process with Experien recently in order to access my personal tax account, they required details of at least two bank accounts and a credit card (and they excluded Nationwide Building society and American Express).


I keep more than one mainly because I don't want to get caught out if my main bank has an IT meltdown like TSBs recent one, but also in order to access various banks regular savings or high interest accounts.