Bank Accounts

matthewp8181

Hi 
I've recently joined RBS, approx 4 months ago. How soon can I move again and will it cause problems if I do? Martin mentioned something about credit ratings being affected for mortgages.
Any information would be greatly appreciated.
Kind regards 
Matthew

eskbanker

Unless there are any terms committing you to a minimum period with RBS, you're free to go elsewhere whenever you want.

Opening new bank accounts entails credit checks, and too many of these, over too short a time period, too close to a mortgage application, could spook potential lenders - there are no hard and fast rules, but occasional moves between current account providers are unlikely to be detrimental if your credit files are generally in a healthy condition....

matthewp8181

Thank you very much for this.
I have my current mortgage for another 3 years so changing banks again shouldn't affect the next mortgage application. I guess I just need to double check with RBS then move when they say I can. Thanks again for your help.

General_Grant

matthewp8181 said:

Thank you very much for this.
I have my current mortgage for another 3 years so changing banks again shouldn't affect the next mortgage application. I guess I just need to double check with RBS then move when they say I can. Thanks again for your help.

What is it in the T&C of the account you hold which led you to believe you need RBS to allow you to move your business away from them?

maxsteam

Has something gone wrong with your dealing with RBS? It's allowed but, imho, you should have a reason for closing an account after just 4 months.

matthewp8181

There is nothing in the T&C just wanted to double check. Nothing has gone wrong it was just the offer from HSBC for £125, just thought why not. It's not a business account its a Personal Account

Alex9384

matthewp8181 said:

There is nothing in the T&C just wanted to double check. Nothing has gone wrong it was just the offer from HSBC for £125, just thought why not. It's not a business account its a Personal Account

Howmany current accounts you have? If you only have one, you will lose your account history every time you switch to a new bank. Then start building it from zero. If you have 4-5 accounts, you can keep at least 2 accounts for years and switch the other 3. This way, you can take advantage of more than one switch offer at a time (sometimes there are multiple offers from different banks) but also keep your oldest accounts, which shows some stability that lenders like to see. Keeping one or two credit cards for years would help too.

matthewp8181

Oh right so you can just open up a second account rather than close down your old one? And they still give you the offer?

Alex9384

matthewp8181 said:

Oh right so you can just open up a second account rather than close down your old one? And they still give you the offer?

Well, you need to let the new bank close one account that you hold with a different bank, that's the deal. It doesn't matter if it's 10 years old or 1 month old account. You just need to switch it to the new bank offering the switch incentive. This means, the new bank will transfer everything and close the other account you are switching from. Before you actually start doing any switching, you can open a few 'donor' accounts which you later switch to other banks for bonus. You can still keep your old accounts with years of history (if the history is good and worth keeping).

matthewp8181

I see so I need to start the process by opening a few "spare" accounts then start switching when an offer comes about. Plus keeping a long running account will help even out my credit score? Really good advice thank you. And I suppose as long as you fulfill the criteria for the "spare" bank accounts the banks are not worried?

[Deleted User]

matthewp8181 said:

 Plus keeping a long running account will help even out my credit score? 

You don't have a credit score to be evened or unevened out.

Lenders are generally looking for some semblance of stability i nyour account management.