Does the number of bank accounts you have affect your credit rating?

annetheman

Deleted_User said:

January (although you don't seem sure if it was January) is very recent for it to be updated in the monthly view you see of your credit file. 

You won't tell the mortgage lender how many cards you have. They'll ask you for the debt you have.

You're seriously over-worrying about this.  

Thank you - that makes sense. 

You're probably right lol I am over-worrying but if you remember when you were a FTB, I'm sure you can understand if not empathise. I will only breathe normally again if I get those keys. Until then I'm going to be a stressed out wreck, no matter how hard I try not to.

I am sure it was January, the 2nd to be exact - I called NewDay earlier this evening and they told me the amount that was put on it, that it was paid in full and when I closed it... January feels so long ago but it isn't, really! 

Thanks for the responses 

Thrugelmir

Anything out of the ordinary will be viewed with a degree of suspicion. If there's no obvious purpose served. Given most peoples personal banking is a very mundane affair with little monthly activity. 

annetheman

Thrugelmir said:

Anything out of the ordinary will be viewed with a degree of suspicion. If there's no obvious purpose served. Given most peoples personal banking is a very mundane affair with little monthly activity. 

Is this out of the ordinary? Closing a credit account? What kind of things would they view as out of the ordinary?

mcpitman

annetheman said:

Thrugelmir said:

Anything out of the ordinary will be viewed with a degree of suspicion. If there's no obvious purpose served. Given most peoples personal banking is a very mundane affair with little monthly activity. 

Is this out of the ordinary? Closing a credit account? What kind of things would they view as out of the ordinary?

Stop worrying, you are overthinking this.

annetheman

mcpitman said:

annetheman said:

Thrugelmir said:

Anything out of the ordinary will be viewed with a degree of suspicion. If there's no obvious purpose served. Given most peoples personal banking is a very mundane affair with little monthly activity. 

Is this out of the ordinary? Closing a credit account? What kind of things would they view as out of the ordinary?

Stop worrying, you are overthinking this.

Thank you I'll try.

Examples of the kind of things a lender checking a credit file for a mortgage application might view as "out of the ordinary"/a pointer in the right direction/thread/site/resource still welcome!

jim1999

Mortgage lenders can be very jumpy - generally speaking your broker will explain anything "out of the ordinary" if they understand the reasons why.

I recall one lender wanting a bank statement showing that I'd paid rent for the last 2 years, and had a major case of "computer says no" when I told them that I paid my rent by credit card.  Another had a flap because my old mortgage had a 5 year term and the new mortgage had a 35 year term - it was because the old one was very small and the new one was very large.  In both cases my broker explained it and the problems went away.

In terms of credit history - all sorts of things potentially.  If someone did a ton of searches for loans a few months ago but nothing appeared on the credit file, for instance.  If someone opens new bank accounts every month and then closes them again a couple of months later.  Again if your broker explained that the loan applications were for a car you decided not to buy, and the closed bank accounts were to take advantage of switching offers, then that might assuage them.

Generally mortgage lenders tend towards stability and fairly vanilla finances, but it doesn't mean that you can't get one with a more eclectic file.  Mine is bonkers at first glance.  I know I'm echoing what you've acknowledged already, but you're making mountains out of molehills here!  My recommendation would be to find a broker you get on with and stop worrying about your credit file - they can do it for you and with a lot more knowledge.

annetheman

jim1999 said:

Mortgage lenders can be very jumpy - generally speaking your broker will explain anything "out of the ordinary" if they understand the reasons why.

I recall one lender wanting a bank statement showing that I'd paid rent for the last 2 years, and had a major case of "computer says no" when I told them that I paid my rent by credit card.  Another had a flap because my old mortgage had a 5 year term and the new mortgage had a 35 year term - it was because the old one was very small and the new one was very large.  In both cases my broker explained it and the problems went away.

In terms of credit history - all sorts of things potentially.  If someone did a ton of searches for loans a few months ago but nothing appeared on the credit file, for instance.  If someone opens new bank accounts every month and then closes them again a couple of months later.  Again if your broker explained that the loan applications were for a car you decided not to buy, and the closed bank accounts were to take advantage of switching offers, then that might assuage them.

Generally mortgage lenders tend towards stability and fairly vanilla finances, but it doesn't mean that you can't get one with a more eclectic file.  Mine is bonkers at first glance.  I know I'm echoing what you've acknowledged already, but you're making mountains out of molehills here!  My recommendation would be to find a broker you get on with and stop worrying about your credit file - they can do it for you and with a lot more knowledge.

Thank you! That's really very helpful. I do feel I can trust my broker's opinion and he has said he wouldn't put the application through if he was concerned about anything... I just have a bad feeling I can't shake.

I guess time will tell. Rejection wouldn't be the end of the world; if anything a failed purchase would give me more time to look "vanilla and stable", I suppose. I doubt I'll worry less though!

Thanks, everyone!