Closing bank accounts - how many is too many?

tel_

I have opened about four bank accounts recently, all of which will be used to switch to new accounts that pay the switching bonus. Is the general consensus that it's not wise to switch into these in the space of a month, but gradually over a period of 4-6 months - or even longer?

I know my credit rating is very good - excellent in-fact, so this is not too much of a concern. Could some banks take a dim view of my practice though, and possibly refuse my request to switch, so I'll forfeit the cash payouts?

All opinions will be greatly received.

Willing2Learn

I am a serial switcher (I just love the incentives). I have never been refused a request to switch. I have made over a dozen applications for credit over the last 12 months without any problem. It does mean your 'score' will drop. But since your 'score' is neither used nor seen by lenders, it doesn't really matter.

YorkshireBoy

tel_ wrote: »

I have opened about four bank accounts recently, all of which will be used to switch to new accounts that pay the switching bonus. Is the general consensus that it's not wise to switch into these in the space of a month, but gradually over a period of 4-6 months - or even longer?

No it isn't. I've previously switched 11 accounts over a 3 month period, requiring 19 applications. Many here will have switched far more than that with the recent Santander promotion.

I know my credit rating is very good - excellent in-fact

Who told you that? HSBC? Halifax? Natwest?

tel_

YorkshireBoy wrote: »

Who told you that? HSBC? Halifax? Natwest?

TSB, in a branch, last year. I also looked-up my credit rating with Experian.

Willing2Learn

tel_ wrote: »

TSB, in a branch, last year. I also looked-up my credit rating with Experian.

TSB do not use your Experian, Equifax or TransUnion score. TSB will score you independently against their own criteria and policies using the data held in your credit files, added to the data you submit in a credit application, added to the data they already hold on you as an existing customer. That makes your Experian 'score' meaningless, and only good for amusement...

PRAISETHESUN

Opening multiple accounts in a short period of time is likely to hurt your ability to get credit in the short-term as multiple applications will usually results in multiple "hard" credit searches on your credit files. Ignoring your "scores" (which are basically meaningless, as discussed above), multiple searches will suggest to lenders that you are desperate for credit and more likely for them to decline you, even for a bank account.

Assuming the accounts are already open however then in my experience there is no reason why a bank would refuse a switch, unless the account is overdrawn or there is some sort of other dispute on the account. Some banks might get a little touchy about opening multiple accounts just to close them a month later (I did this a few times with Nationwide and although they gave me a very generous credit card recently, they still won't let me open a fourth current account ) so it might be worth spreading it out for that reason, but I wouldn't be worried about forfeiting any payments for a switch not completing on time.

tel_

PRAISETHESUN wrote: »

Assuming the accounts are already open however then in my experience there is no reason why a bank would refuse a switch, unless the account is overdrawn or there is some sort of other dispute on the account. Some banks might get a little touchy about opening multiple accounts just to close them a month later (I did this a few times with Nationwide and although they gave me a very generous credit card recently, they still won't let me open a fourth current account ) so it might be worth spreading it out for that reason, but I wouldn't be worried about forfeiting any payments for a switch not completing on time.

I guess it also comes down to exactly 'how many' is 'too many'? I plan to open about 8 in total (3 of these will be switched & closed).

And thanks for your post PRAISETHESUN. It makes an informative read

DragonQ

It shouldn't matter. I've never been refused a credit card or current account* despite having loads of current accounts. Just don't get overdrafts because that could eat into your total available credit.


*The only time I've been refused a current account is when HSBC missed a zero off my salary when entering it into their system, and even when they fixed it I couldn't get an account because the system now has a permanent mark on it saying I've been refused before. So no £175 switching offer for me, ever apparently!

KittenChops

PRAISETHESUN wrote: »

Opening multiple accounts in a short period of time is likely to hurt your ability to get credit in the short-term as multiple applications will usually results in multiple "hard" credit searches on your credit files. Ignoring your "scores" (which are basically meaningless, as discussed above), multiple searches will suggest to lenders that you are desperate for credit and more likely for them to decline you, even for a bank account.

Around 15 years ago I used to manually underwrite credit applications for personal loans (those where the automated system didn't approve or decline). If we felt that someone's application was close to being declined (say they were only just within our affordability criteria) we would look at the number of credit applications (excluding mortgage applications) and if there were 4 or more in the last 3 months, we would use that as our reason to decline. Obviously this was some time ago, and applicable to that lender...

tel_

DragonQ wrote: »

It shouldn't matter. I've never been refused a credit card or current account* despite having loads of current accounts. Just don't get overdrafts because that could eat into your total available credit.

I won't be applying for a credit card with these accounts, nor overdrafts. I'm just in it for the current accounts and switching bonuses - all thanks to you guys

DragonQ wrote: »

*The only time I've been refused a current account is when HSBC missed a zero off my salary when entering it into their system, and even when they fixed it I couldn't get an account because the system now has a permanent mark on it saying I've been refused before. So no £175 switching offer for me, ever apparently!

Well, that's simply not right. You shouldn't miss out all because someone wasn't paying attention to their typing, and probably thinking to themselves 'is it not hometime yet?' instead. :mad: