Close old bank accounts?

thegentleway

As a result of taking advantage of offers I've got about 14 bank accounts. I've not closed the ones I don't use because I've heard credit score agengies look at you average bank account length, is this true and if so is it a big impact? Thanks,

Thrugelmir

Unless you've a need to use a particular one. Then might as well close it. Retain just what you need. 

thegentleway

Thrugelmir said:

Unless you've a need to use a particular one. Then might as well close it. Retain just what you need. 

Closing them doesn't affect credit score?

[Deleted User]

Yes, but that's not important. Lenders will only look at the data on your file, never the score.

Keep the ones you need.

thegentleway

Deleted_User said:

Yes, but that's not important. Lenders will only look at the data on your file, never the score.

Keep the ones you need.

I appreciate the score is not important but the data on the file is. I'm guessing I can close all my redudant accounts apart from the oldest one since Credit Karma says:

Age of credit

18 yrs 1 mo

Since opening or joining your oldest account

Try not to close your ###### account as this could impact your score.

WHAT THIS MEANS

This is the age of the oldest active account on your credit report, or if a joint account, the date you became an account holder.

WHY THIS IS IMPORTANT

Lenders like to see how long you’ve been managing active credit for. The more financial history you have, the more chances to prove that you can meet your obligations and organise your finances responsibly.

WHAT YOU CAN DO

Even if you rarely use it, unless it’s costing you too much money, try not to close this account. After 6 years, points are added to your score, but keeping it open for more than a year will start to improve this factor. The longer you keep your oldest account active, the better for your score.

JGB1955

Close all but the oldest one.  Having so many accounts opens you to financial abuse. (So many accounts, so many passwords, so many transactions potentially going unnoticed...)

[Deleted User]

thegentleway said:

Deleted_User said:

Yes, but that's not important. Lenders will only look at the data on your file, never the score.

Keep the ones you need.

I appreciate the score is not important but the data on the file is. I'm guessing I can close all my redudant accounts apart from the oldest one since Credit Karma says:

Age of credit

18 yrs 1 mo

Since opening or joining your oldest account

Try not to close your ###### account as this could impact your score.

WHAT THIS MEANS

This is the age of the oldest active account on your credit report, or if a joint account, the date you became an account holder.

WHY THIS IS IMPORTANT

Lenders like to see how long you’ve been managing active credit for. The more financial history you have, the more chances to prove that you can meet your obligations and organise your finances responsibly.

WHAT YOU CAN DO

Even if you rarely use it, unless it’s costing you too much money, try not to close this account. After 6 years, points are added to your score, but keeping it open for more than a year will start to improve this factor. The longer you keep your oldest account active, the better for your score.

Only keep the oldest one if that's the one you like the best. Lenders understand that current accounts come and go, especially with the current trend for switching, and they can see that you've had previous accounts.   Keep a couple of them, so you have a back up in the event of closure.

Don't worry about the ramblings of Credit Karma.