Infrequently used bank accounts & bank relationship

taless

Hi,

I'd like to ask - will holding a current account which you do not use much (non-dormant, in credit, just that only few transactions per month) affect your relationship with the bank, either positively or negatively?

I understand that when banks decide on a loan/mortgage application - other than looking at your credit score which is held by Experian/Equifax/Call Credit, they could also look at how you have managed your accounts with them.

So my question is - if you have a bank account which you know you won't use much, should you keep them or close them? Will having this bank account open make you "better favoured" or "worse favoured" compared to one who is a new customer to them, in terms of taking up loans in the future?

To make matters more complicated, for my situation, the bank account I am referring to is the one that I have been using for the longest amount of time. If your answer is "yes, close them" for the above questions, would the fact that the account is the one that you held for the longest amount of time affect your decision? (By the way, this is really advance planning - the loan that I might take out will be at least 4 years away)

Any advice is greatly appreciated!

emma396

I think as long as you are not overdrawn for long amount of time, it should not effect your chances of future loans or mortgages.