Credit score drops after opening executors account.

Hornets

I am an executor to my cousin's will. Myself and the other executor opened a joint account with HSBC to administer his affairs. It was explained to them, when we opened the account, what the purpose was. Opening it took nearly three hours at a local branch! However my credit score dropped by 15 points because of this. We will be closing it shortly as his affairs are wound up. Will this have another effect on my credit score? We didn't want his money going into either of our accounts.

[Deleted User]

It's fine.  Your credit score is just a fun gimmick for entertainment only.  It has no bearing on anything so don't worry about it.

Opening a current account has no impact on your credit worthiness.

Fighter1986

Deleted_User said:

It's fine.  Your credit score is just a fun gimmick for entertainment only.  It has no bearing on anything so don't worry about it.

Opening a current account has no impact on your credit worthiness.

I mean, it'll have a impact on creditworthiness with some lenders. Average age of account and age of newest account etc are factors used in some credit scoring models, this is to prevent an individual from taking on board too many new lines of credit at once. Just like a lot of searches in a short timeframe, a number of new accounts in a short timeframe can also be viewed as a bit of debt stress.

So yes, your creditworthiness will have dropped a little bit for a little while with some lenders when having just opened a new account. 

[Deleted User]

That's true in theory, but in practical terms, a current account has such a limited line of credit, it's almost never a significant factor.  Also average age of account is vastly over rated as an actual factor.  The models are more nuanced than that.

Fighter1986

Absolutely. And many scoring models are nuanced beyond human comprehension anyway.

Many lenders have been building neural-net scoring models for donkeys years now where the system tweaks it's scoring model month to month based on existing customer account performance, in such a way that sometimes the lender themselves aren't absolutely certain of what weightings are applied in automated decisions and system generated existing customer offers.