Bank Accounts

colsten

matthewp8181 said:

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?

Having a donor account in reserve for when a switch offer comes up can be helpful. Sometimes in the past, I opened a new account just to switch it immediately I had the debit card and online access.

I don't know what you mean by banks being worried - -  they either accept your application or they don't. Once your application for the new account is accepted, you can proceed with the switch. It is important to remember that the application  for a new account, and switching to that new account, are two entirely separate processes, even if the bank allows you to apply for both on the same form. Whilst most switches happen without problems, people should make sure they have access to cash in case something does go wrong with the switch.

Regarding credit files:

1. your score is simply a score between you and the credit reference agency. It will not be used in any application you make
2. most current account applications result in a hard search
3. hard searches disappear from your files after about 12 months
4. too many hard searches in a short period of time can be interpreted as 'financial distress' and result in rejection of applications for credit cards, loans and mortgages. If you are not planning to apply for these in the next 6-12 months, hard searches don't matter. Not even if they lower your score - -  as that is private between you and the CRA
5. your credit reference contains the history of your active and closed current accounts. Lenders like to see some financial stability, so if you have an account in good stead for many years, that will work in your favour when applying for credit. So keeping one or two current accounts for a long time will help with your creditworthiness
6. I don't know whether lenders consider the total number of active and closed current accounts when you apply for a larger credit (mortgage, credit card, loan etc) but I do know that this number does not appear to affect current account applications

matthewp8181

Wow thank you all very much for your help. Still learning tricks of the trade but all this is extremely useful.