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Switching for bonus + credit score etc

Good morning all.

Main account with Halifax since like 2012. Also got a student account with them since 2018.

I’m thinking about switching the main Haifax around (perhaps to Nationwide of HSBC) to get the £100 bonus.

My only concern is that I understand “longevity” of accounts is a big deal. I’m hopefully applying for my FTB mortgage in 12-18 months.

If I switch, my longest standing account goes from 9 years to 2 years - would you suggest not switching on this basis?

Otherwise, I see no reason to switch 2-3x this year and pay for a little trip to Europe :)

Thank you.

Comments

  • Toble
    Toble Posts: 11 Forumite
    First Post
    My other credit history is long, as good. Have 3 CC’s, loan etc never missed a payment on any. Credit utilisation of like £500 from a total £12k to use.

    Did pay minimums on them all for about a year but never went late. If that’s relevant. Credit score is 900+ etc (I know it’s a useless score).
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    It's always a good idea to keep a longstanding account, to demonstrate longevity. You don't have to switch your longstanding account. Just set up one or more other current accounts (known as donor accounts on here) and switch those.


    BTW, the credit score you see on a CRA file is a pretty meaningless indicator. No lender will take notice of it. They will look at the details in your credit file(s) and make their own decisions, based on their own, unpublished, criteria.
  • PRAISETHESUN
    PRAISETHESUN Posts: 4,486 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    Do you only have the one current account? If so, I'd highly recommend opening a second account with Halifax and switching that one instead of moving your main account around. Keeping an old account open is generally seen as a good thing by lenders, but it's not the sole reason that should prevent you from switching.

    Also obligatory note about making sure to differentiate between your "credit score" and your "credit history". The score provided by the CRAs is basically meaningless, whereas your credit history is what is seen by lenders when you make a credit application.
  • Don80
    Don80 Posts: 300 Forumite
    Ninth Anniversary 100 Posts Name Dropper Combo Breaker
    I agree, keep your Halifax account, open a second account and switch that. It is a good idea to have two accounts with different banking groups in any case - we all saw the TSB fiasco! So, Halifax is a Bank of Scotland trading name, which is in turn part of the Lloyds group - so going with Nationwide or HSBC would be out of the group.
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