Will closing an unused bank account improve my score? 30 May 2022 at 4:48PM in Credit file & ratings 7 replies 182 views

sbrewer4

Hi all,
I have noticed on my Credit Karma report it says the fact I have opened 3 new accounts (2 Bank accounts, 1 Credit card) in the past 6 months is having a high impact on my credit score although there are no hard credit searches on this report for any of the accounts, which I find strange. My question is if I close one of the bank accounts, which I don't use that often anyway, will it improve my score/report as then I only have 2 open accounts that were opened in the last 6 months.

Thanks.

Sandtree

Only Karma can tell you but only Karma will ever see the "score" they show you so why'd you care?

Having applied for multiple new accounts in a short time will be a red flag for some but closing any of them doesn't then improve the situation... just need time to show your situation restabilises and you aren't desperate 

Ebe_Scrooge

Your credit score is meaningless, it's not used nor even seen by any lender.

In terms your credit history, which is what counts, a couple of points.  Firstly, not all lenders report all CRAs.  So you need to check all 3 CRAs to get an accurate picture of your status.  For a credit card, a hard search will have been carried out - just not necessarily with that CRA.  A current account will often not result in a credit search, unless it has an overdraft facility attached.

Don't go closing accounts just to improve your meaningless score.

DCFC79

By all means close it but not for improving your file but do it as its unused.

[Deleted User]

Don't close it, many many people have multiple current accounts and it's very useful if one suddenly has an issue. The fictitious score can be ignored. If you don't use the account then switch it for free cash. Lenders don't care about current accounts unless they have overdrafts as you are not borrowing on them and they understand people can have more than one

Lou76

Deleted_User said:

Don't close it, many many people have multiple current accounts and it's very useful if one suddenly has an issue. The fictitious score can be ignored. If you don't use the account then switch it for free cash. Lenders don't care about current accounts unless they have overdrafts as you are not borrowing on them and they understand people can have more than one

This is sound advice.

I'm with Virgin (formerly Clydesdale) and the mobile banking app has been unavailable all day.

I'm not particularly affected, I just wanted to double check that a new DD I set up, has gone out OK today.

However, people on Twitter are commenting that they can't pay bills etc as a result.

At times like this, a separate bank account would be advantageous, if you need access to funds/bill payment etc.

molerat

Just to prove how pointless your "score" is closing an account will likely reduce it. 

Change is bad, clearing a £6K (stoozed 0%) credit card debt reduced my score.  Taking one of my cards to 30% utilisation reduced my score even though my overall available credit utilisation was around 4%.

Flat_Earther

Ebe_Scrooge said:

Your credit score is meaningless, it's not used nor even seen by any lender.

In terms your credit history, which is what counts, a couple of points.  Firstly, not all lenders report all CRAs.  So you need to check all 3 CRAs to get an accurate picture of your status.  For a credit card, a hard search will have been carried out - just not necessarily with that CRA.  A current account will often not result in a credit search, unless it has an overdraft facility attached.

Don't go closing accounts just to improve your meaningless score.

This is untrue, almost every current account will credit check you, regardless of whether you ask for an overdraft.

I've heard some of the fintech banks don't or didn't but that's a very small part of the market.