Should I close my old bank account?

Garry7

Hello. Over the past couple of years I've been paying off debt so I can save up for a deposit on a house. Along the way I've been closing my credit accounts too.

This month I'm paying off my £600 overdraft on my 20-year old Natwest Current Account and removing the overdraft facility. I no longer bank with Natwest, so the current account isn't required.

In terms of my credit score and given that this is by far my oldest account, should I keep it open or close it off? I now bank with First Direct and the account is about four years old.

[Deleted User]

In terms of credit history, it's not a big deal either way.

The credit score will plummet when you close it, but you can ignore that, as it's not used for credit decisions.

Ben8282

Don.t understand why you are closing your credit accounts.
Keep current account open. It is 20 years old and will have positive effect regarding average account age. Keep the overdraft facility although if you no longer bank with Natwest am surprised that they have not withdrawn the facility sooner.

Garry7

It's a balancing act.

Some of the accounts close automatically when they're paid off, e.g. loan accounts, retail finance. Others I've closed to reduce my amount of 'available credit.' As with all things credit files, it's a judgment call.

I'm not closing them all - only the ones I don't intend to use in future.

I would imagine the reason Natwest haven't closed my account or removed the overdraft facility is because I do pay in a small amount each month to cover the interest/overdraft charges and to pay off my Natwest credit card. I could just pay the credit card directly from my First Direct account but I don't.

[Deleted User]

Keep it open.
Natwest will only close the account or remove the OD facility if you breach any terms.
Current accounts usually stay open for a long time before becoming dormant even with a zero balance.