Hard search. How often

Botedcardgamer

Recently around 2/3 months ago got a new credit card  
In Jan/feb I opened a new current account. (Small overdraft)

I have 3 other currents from a few years ago and another credit card. I only use the credit cards and pay back via Direct debit. No debt. 

Will it impact my score if I do another current account switch for the bonus? Sorry the guide wasn't clear. Might be going for a mortgage next year. Many thanks. 

CRISPIANNE3

Too many hard credit checks over a short period of time can affect your credit score for six months, reducing your ability to get approved for credit in the future.

If you apply for credit, the company you apply to will do a hard check of your credit report to see your suitability. But you can also be subject to a hard check from utility providers and mobile phone companies when applying to use their services.

The more credit applications you make, the more hard checks will appear on your credit report, and the greater effect it will have on your credit score and likelihood of getting credit in the future.

jay1804

Botedcardgamer said:

Recently around 2/3 months ago got a new credit card  
In Jan/feb I opened a new current account. (Small overdraft)

I have 3 other currents from a few years ago and another credit card. I only use the credit cards and pay back via Direct debit. No debt. 

Will it impact my score if I do another current account switch for the bonus? Sorry the guide wasn't clear. Might be going for a mortgage next year. Many thanks. 

Hard searches do affect application acceptance, but if it's just a current account with no overdraft is should fine, however wait once all the searches drop off before the mortgage application, for a better chance.

D3xt3r5L4b

Don’t worry about your score. It will drop following the search and following the opening of the account.

Botedcardgamer

Sounds like its fine as long as I'm not apply for an over draft? 

D3xt3r5L4b

You shouldn’t have/use an overdraft 

dr_adidas01

D3xt3r5L4b said:

You shouldn’t have/use an overdraft 

Why not?  I have an overdraft on my main bank account that's never been used!!

PRAISETHESUN

dr_adidas01 said:

D3xt3r5L4b said:

You shouldn’t have/use an overdraft 

Why not?  I have an overdraft on my main bank account that's never been used!!

Some people are adamant that ODs are the source of all evil and no-one should use them ever. Personally, I think they can be useful if you're in a tight spot for a short period but since they are a very expensive way to borrow and can be withdrawn basically anytime, they may not be the most secure source of emergency money - overall I'd recommend against using them unless you absolutely have to. That said, having a well-managed OD facility can also help to demonstrate that you can manage credit responsibly.

To answer OP's question, opening a new current account will involve a hard search on your file. If you switch between accounts that are already open then no search will be performed. A single search in isolation will have very little impact on your credit history, so I wouldn't worry about that by itself if you want to open a new account.

jimbo26

Your score is not important so ignore it.

What you really need to know is will it affect my ability to get credit in the future. From personal experience, I think too much emphasis is placed on hard searches and their affect on your ability to get credit. The argument is that it shows you are desperate for credit. This may be the case if you are maxed out on credit cards. But for someone who isn't maxed out and just searching for a better deal, I think it has very little if any impact.

funkycredit

I find searches bear little to no effect to me, right now I've over 30 searches in the last 6 months (Experian) and have opened 6 credit cards and 14 bank accounts. A few (HSBC) have duplicated searches and some I've refused on the offer screen. 

I always get offered (and take) an OD - in fact I refuse the account if no OD offered. 

Obviously I'm not seeking a mortgage and not applying now until next summer (I change every year and have a purge / reopen if any offers etc). 

But in my experience, past history and higher available credit with low utilisation gives more successes. 

funkycredit

jimbo26 said:

Your score is not important so ignore it.

What you really need to know is will it affect my ability to get credit in the future. From personal experience, I think too much emphasis is placed on hard searches and their affect on your ability to get credit. The argument is that it shows you are desperate for credit. This may be the case if you are maxed out on credit cards. But for someone who isn't maxed out and just searching for a better deal, I think it has very little if any impact.

Agreed. As I pay my cards in full, and it shows the amounts paid (over £2k typically) plus having over £30k OD's which are never used; it's clear I'm not desperate but looking for better deals so I agree with what you've said. Seems to be obvious when reading your own report whether you're desperate or seeking better deals.