Will closing bank account affect my score?

Flight32

Hi all,

Long story short I'm looking at buying my first home as soon as poss but years of living in my overdraft and running up bills as a student has really impacted on my credit score.

Now that I'm employed I'm working hard on getting everything paid off. My main question is this -

I've not been happy with my current bank account for many years and wanted to change. I finally did this at the start of the year but still owed a few hundred £'s to settle my overdraft. After paying this off completely would closing the account then lower my score? I will have no use for it as all of my DDs etc. will be moved over to the new provider.

Is changing banks as I'm about to get ready to apply for a mortgage a big no?

[Deleted User]

It'll just show as a closed account. Any impact on your score is irrelevant, as it's not real and isn't used in lending decisions. It's just a little gimmick only you see.

However, older accounts can show stability, so consider what else you have of long standing.

maxximus75

I would keep it open with £1 for longevity of history.



Credit providers like to see long standing accounts. They wont see the balance of it unless it is overdrawn, it will just show as 0 but, its the history that counts.

Ben8282

This account is presumably being reported with an overdrawn balance each month. If you close the account now, the fact that you have been living in your overdraft will be visible for the next 6 years.
However, if you keep the account open by the end of 2 years all reference to the overdrawn balances will have disappeared as the account updates each month with a 0 balance (assuming you don't use the overdraft any more).