Will this be bad for my credit future?

water079

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

[Deleted User]

Yes, it affects your credit score, but no one sees or uses that.

Go ahead and switch accounts. It'll have no impact on your credit worthiness.

DCFC79

water079 said:

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

Nothing wrong with switching bank accounts, it may affect the score but only you can see it, lenders etc see your history. What might be an issue is if you switch accounts in quick succession but your changing your normal account for a student account and then switchto an account from another provider so it might not even make any difference.

So you dont use direct debits ?
No mobile for example ?
Nothing wrong with direct debits.

water079

DCFC79 said:

water079 said:

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

but your changing your normal account for a student account and then switchto an account from another provider so it might not even make any difference.

Will anyone vouch that it wont cause a problem?

gg23

water079 said:

DCFC79 said:

water079 said:

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

but your changing your normal account for a student account and then switchto an account from another provider so it might not even make any difference.

Will anyone vouch that it wont cause a problem?

Even if they did, what comeback do you have if they're wrong?

bradders1983

Why do you think it would cause an issue? People switch current accounts all the time and from the sounds of it you arent even changing provider in the first instance.

Now, if you switched accounts and then blasted an overdraft, that would clearly be an issue.

Ignore. The. Made. Up. Three. Digit. Score!

DCFC79

water079 said:

DCFC79 said:

water079 said:

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

but your changing your normal account for a student account and then switchto an account from another provider so it might not even make any difference.

Will anyone vouch that it wont cause a problem?

Its not been a problem for me but not sure thats enough to satisfy you.

ceremony

As others have said your credit score doesn't matter. It's a number the agencies give you and it is applicable only to them. They aren't lenders so their opinion doesn't matter.

Your 'made up number' will go down if you change bank account, for a short while, but it's not going to matter at all for getting a mortgage.

What mortgage lenders want to know is:

• How big is your deposit (the bigger the better)
• How high is your income?
• Have you missed any payments recently?
• Have you had any defaults registered against you (but even then, a default 4 years ago won't stop you getting a mortgage today if you've been 'well behaved' in the last few years)
• Have you had any CCJs (again, a satisfied CCJ years ago won't be a problem)

I assume you're graduating now and then will be saving up for a deposit for a house. So, while you do that make sure you pay all your bills on time and don't go into an unauthorized overdraft. Make sure you're on the electoral role too.

Min-maxing your score doesn't help. The credit reference agencies want people to pay attention to that because that's how they get money out of people - selling 'credit building' products.

MalMonroe

water079 said:

Hiya

I am a university student. I have never had a credit card. I have never used Direct Debit. I have never used overdraft.

I want to switch my bank account within the same provider to a student account, so I can get a freebie. I want to then straight after switch to a different provider's student account because their offering is what is actually right for me.

If I do that will it be bad for my credit future? For getting a mortgage and larger overdraft and better rates and terms with things and everything?

I read somewhere that switching bank accounts affects credit score in a bad way. Is that true?

Some student current account providers may not actually allow you to switch as you say you want to. When I started uni, several banks had offers and freebies but we had to pick one and stick with it. I'm not sure if it's the same now but banks wouldn't let us switch to and fro, just for the freebies. Student accounts aren't like ordinary current accounts in that respect. 

Once you've graduated, you will be offered an alternative current account but you will then have the freedom to switch as you wish.

DO use credit cards though because that will boost your credit-worthiness. Sensibly, though, of course! As others have said, your credit score is immaterial because lenders can't even see it. 

To be honest, if I were you I'd not be worrying about mortgages, loans and overdrafts just yet. Get your degree first, then a job and then look for those things because you won't be able to have loans, etc. until you have a regular income. Just don't get into lots of debt, if possible. That's the best way to ensure your financial future. 

Tragen

There are many people on these forums that have switched 10+ times, myself included. Sometimes in quick succession. My credit "score" is 999, but reality is that the score is only known to you and is a marketing gimmick to entice you into thinking you should borrow more.