Does switching bank accounts affect credit rating

bp5678

I would like to change banks frequently to receive the signing up bonuses/perks for each when you join.

Willing2Learn

It reduces the overall ages of your credit accounts, so it might have a slight negative impact when you are scored by a lender.

Just to add that I open and close 3-4 current accounts/year and have no problem getting credit...

PRAISETHESUN

Opening/closing multiple accounts in succession will affect your credit history in two ways:

1) the average age of your accounts will be lower - lenders like to see stability so keeping a few accounts open for longer will demonstrate this.
2) many current accounts credit search you as a part of the application. multiple searches in a short period tends to look bad to lenders.

As long as you are sensible and only open/close a few accounts every few months you will be okay IMO. There aren't that many decent switching offers on the market so you won't really have to open/close too many accounts anyway

Vet

Only marginally. Just don't go overboard.

Anthorn

bp5678 wrote: »

I would like to change banks frequently to receive the signing up bonuses/perks for each when you join.

Keep a bank account you've had for some time active for the sake of your credit history because lenders like stability. Then keep your bank account switching confined to extra bank accounts. Much the same applies to credit cards too.