Second Lloyds current account

vadek

My Lloyds banking app keeps prompting me to open a second current account, but then rewords this "apply" for a second current account. Assuming there would be no problem opening it, are there any disadvantages to opening a second account? Would it have any effect on my credit score? Does it matter what I use it for? Has anyone got any experience of multiple current accounts with Lloyds?

eskbanker

Don't feel obliged to act on a prompt from an app, but a second account could be useful as a donor account to switch for an incentive elsewhere.  Many on here have multiple current accounts, not just to collect interest or switching incentives, but for the resilience this provides in the event of technical problems, etc, but this only applies if you have multiple accounts across different banking groups rather than two with the same bank.

As a second account will have the potential to go overdrawn then it will involve a credit search and appear on your credit files - it might impact the score slightly, but as pointed out repeatedly on this forum, the score is a made-up number anyway....

Tildaplum

I think you might be looking at this backwards - the first question is to ask yourself if you even want a second account and what you would use it for. Then you can decide if you want it with the same bank or a different bank.

CRISPIANNE3

I have 4 Club card accounts with them. I did notice that my credit score did fall when the new account was first shown on my report. Also I use mine for bills keep £5000 in each for the interest plus the accounts come with the various benefits like free cinema tickets.

I noticed when I applied there was no credit search carried out. 

BTW As many will say on here do not concern yourself about credit score. It's for educational purposes only.

NedS

I opened a Lloyds Club account recently (switched in for the bonus). I then opened 2 more Lloyds accounts in quick succession and used them as donor accounts to switch elsewhere. My Experian credit score dropped a little but now it's back where it was, so had a minor effect for a couple months.

PRAISETHESUN

I don't recall Lloyds performing a hard search when I opened a second current account with them for their switch incentive last year (I was an existing Lloyds customer), but I could be wrong. Either way, a single isolated search won't really matter in the scheme of things, and won't be an issue in a few month's time.

That said, the arguments above have some merit - do you want/need the account? There's no real downside to having one unless it is costing you money - you can groom it as a donor account to switch for an incentive with another bank, or simply use it as a makeshift savings pot to stash some spare cash.