Credit score question

dekaspace1

Hi there, basic query I hope but after years of being unemployed, and when I was really young bad debt I have been working for 18 months, in that time I have got a credit card and a new bank account and a sim only contact, when I log into credit search websites it says as I have opened 2 new credit accounts in 6 months this is bad (one was the bank account only other was credit card)
The credit card was near 6 months ago and the bank account almost 3 months ago.
Just for future reference lets say I wanted to open an account elsewhere would this be bad? I stupidly realised after opening my bank account theres only 2 branches in 20 miles and 1 within 40 miles and the next is about 70 miles away so would have to pay money in at post offices but assume if I attempt a new one now it will look bad?

bazzyb

‘Bad’ for what purpose? What are you trying to achieve?

Any new account or new credit search is a potential negative, but it all depends on what the context is and why you are concerned as to what the impact will be. Are you looking to take on some form of borrowing in the near future?

dekaspace1

Well im not looking at necessarily getting more credit, that being said I'd rather have smallish amounts on multiple credit cards (but not utilised) than a large amount on a single credit card unused.
I have been with current bank 19 years and they themselves are getting less and less branches and nowhere near as good as they were even 10 years ago, and my current accounts with them have no perks to them i.e terrible interest, no bonuses at all.
The other reasons for wanting potentially a new credit card in future is for the security of purchasing a large priced item, generally when I make any big purchases by credit card I pay it off before end of month its just for security reasons.

[Deleted User]

There's nothing bad about your card or bank account unless you're laundering money through them. 

If you are, stop it. It's very naughty. 

dekaspace1

Ha no, I just wanted a new bank but also im mildly autistic so like to have backups for my backup.

[Deleted User]

That's very sensible. Have at least a couple of accounts and three or more cards.

Ebe_Scrooge

Having several bank accounts and credit cards is not, in itself, a bad thing.  What's important is to run them properly - don't let your bank accounts go into overdraft, don't carry a balance on your cards, pay them in full every month.  Doing this will, over time, build up a very favourable credit history.

Any new line of credit will, in the short term, make new lenders very slightly wary of you, until you've demonstrated that you can run the accounts responsibly.  But the effect will only be short-lived.  Your credit score, as given by the credit reference agencies, will certainly go down - thankfully, that score is completely and utterly meaningless, and is neither seen nor used by any prospective lender.

Whilst having multiple bank accounts is, in itself, no bad thing, is there a reason you particularly want another one - other than the geographic location of the branches ?  There are very few transactions that cannot be carried out online these days once you've registered for online banking, and you may well find it far more convenient to do your banking from the comfort of your armchair at a time that suits you.

A final point - your mention of credit cards for large value items.  If you're referring to Section 75 protection, that's very sensible.  But be aware that you only need to pay a portion of the item's price on credit card to benefit from S75 - even paying 1 penny on your card, and the rest by BACS or whatever, will give you the cover, so long as the item is between £100 - £30,000.

dekaspace1

Hard to describe really, I don't like online banking much but do use it as it saves me leaving the house and especially at nighttime its very useful.
About banks, I have more than 1 card at current bank, both don't like certain cash machines in my local town mostly ones by a certain provider so I like to have backups, also partly out of paranoia I spread money around in case I am the victim of fraud which did happen to me a lot when I was going through a bad period of life, I had shared letterbox and local drug dealer was a neighbour and stole credit card from the post and splashed out on it, and I had 2 bank accounts emptied for same reason, as they were stealing bank statements they knew my details and used them as ID to get catalogs and such as well  I lost about £8000, which about 1/3 of that was student overdraft and rest was student loan and some savings so had bad credit for years after.
This is main reason now I have 2 wallets and main cards are with mobile phone.
Also now and again as we know certain banks systems can be down.

dekaspace1

Also forgot to say I'm in Scotland and use a Scottish bank, when I was in England I had no branches to use so whilst my income went in, this was days before easy Post Office paying in, and some issues I still needed to go to a branch as couldn't be done over the phone so I like a bank to be relatively close to me just in case rather than travel long distance if theres a problem.