Changing bank accounts often 16 February at 3:40PM in Budgeting & Bank Accounts 9 replies 511 views

BAKERBOY_2

Just wondering if it is bad to keep changing bank accounts every year or so, in terms of future credit/mortgage?
Not looking for future credit any time soon, nor a mortgage. Not this year anyway....
I just like to get the switch rewards

eskbanker

The usual view on here is that it's worth retaining at least one longstanding account to demonstrate continuity but that occasional searches for replacement credit facilities aren't particularly harmful to credit status, especially when lenders will typically only consider recent (6-12 months) activity.

Thrugelmir

Lenders won't the reason behind the switches. As a consequence will naturally take the cautious view. 

LionelChuttleworth

Is it possible to get a bonus for opening a bank account rather than switching ?

My plan is to have a secondary bank account with a few DDs and switch whenever there is a bonus available, a bit like carpet bagging.

SlovakianGuy

LionelChuttleworth said:

Is it possible to get a bonus for opening a bank account rather than switching ?

My plan is to have a secondary bank account with a few DDs and switch whenever there is a bonus available, a bit like carpet bagging.

As far as I know, it's not possible.

Monzo used to pay £5 or even £10 at some point if a friend invited you to open their account.

You can open Monzo and Staling. Neither of them runs a hard search during the application (unless you also apply for an overdraft).

Or you can open two bank accounts with one bank such as Metro. You open one online, log in to your online banking and from there open another account in about 5 minutes. But Metro will do 2 hard searches for opening 2 current accounts on the same day.

Ghostcrawler

there is no bonus for opening a high street bank accounts, you earn bonus only by switching either upfront or monthly rewards (like Halifax, Barclays) or sometimes it is both, like NatWest rewards.  You can open another basic account with the same bank you hold account with and your second account can act as a donor account. I applied Lloyds basic account myself as I already hold cub account to switch to TSB and all worked fine. But Lloyds will do hard search but I dont think there will be any issue and very convenient to apply from the app without filling any forms.

wmb194

The £50 TSB current account opening offer via Quidco still appears to be available. Make note of the terms but it doesn't require a switch. 

There's another thread on the problems some of us have had with declines that have now been reinstated. It's TSB...

colsten

Fineco sometimes had a bonus for just signing up. It's not an account most people would want to use regularly though. Still worth keeping an eye on them for any new offer.

colsten

SlovakianGuy said:

You can open Monzo and Staling. Neither of them runs a hard search during the application (unless you also apply for an overdraft).

Experience varies. I had 2 Starling hard searches, and I most definitely did not apply for any overdraft.
Not that hard searches are a worry for everyone. Unless you are planning to apply for a large credit (mortgage, for instance) in the near future (less than 6 months), it really doesn't matter if you apply for a current account or two. Or five.

mrsplinter

I switched bank accounts in November 2016 and February 2017, then opened a new credit card in February 2018 and then switched bank account again in March 2018. I remortgaged in August 2018, switched to that bank in October 2018 and then got a further advance on my mortgage in December 2018. I switched bank account again in June 2019 and got another credit card (with that bank) with my highest ever limit in October 2019. All involved hard searches.

My frequent changes sometimes reduce my credit 'score', but my goal is to save money and try make the best financial decision at the time. It's over ten years since I was turned down for credit even though my applications have gone up in frequency.