Credit scores and accounts

peteques

Hi all,
Please forgive my naivety - I've never been that interested in credit scores. But, I've recently applied for a new cuurent account with the bank I'm already with, plus a Chase and a Virgin M Plus. How much does this affect your score please; does it matter; and how long does it take to build back up please?
Thanks all

kaMelo

Yes it will affect your score somehow, no it doesn't matter as only you can see it.

Zaul22

It will go down a tiny bit then quickly go back up again. 

Daliah

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

[Deleted User]

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. All credit checks are done by lenders using their own systems (whether custom in house or bought from the CRAs) who score you based on their own criteria, a score that you will never see. A high or low score has no bearing on whether you will get credit or not, as the number of "I have 999 score but got refused XYZ" posts on the credit forum show. A search for a current account will have virtually no impact on anything, particularly if there is no overdraft applied for.

Daliah

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

callum9999

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

Probably because despite being told over and over and over and over and over and over and over and over again, people are too ignorant and/or lazy to understand that the credit score means almost nothing and still insist on having one. 

Daliah

callum9999 said:

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

Probably because despite being told over and over and over and over and over and over and over and over again, people are too ignorant and/or lazy to understand that the credit score means almost nothing and still insist on having one. 

Difficult to educate those living by the gospel

Zaul22

Vaguely relevant question though... what about account age?

The account age part of my report says 'moderate risk'. 
If I were to close my main lifetime bank account so my average account age went down from 11 years to probably 2-4 years, would that matter to anything?

[Deleted User]

Daliah said:

Deleted_User said:

Daliah said:

Your credit score is largely a meaningless indicator that lenders will ignore.

If you don't plan to apply for large credit (e.g. mortgage) in the next 6-12 months, any hard searches for current account applications don't matter. 

You can see on your credit files who performed a hard search, and when. 

To correct, it's an entirely meaningless number, no lenders ever see it, it's never used in any decision on lending. 

I would agree that it is never used in any decision on lending but I don't think it is true any longer that no lenders ever see it. Natwest and RBS, for instance, have gone to great length to update their app to show people their Transunion credit scores. Escapes me, though, why they do this.

Their app showing you the free score is about responsible lending, the score is still irrelevant and lenders never see it

If you apply for an account with NatWest, the only score they see is the one on their internal system

[Deleted User]

Zaul22 said:

Vaguely relevant question though... what about account age?

The account age part of my report says 'moderate risk'. 
If I were to close my main lifetime bank account so my average account age went down from 11 years to probably 2-4 years, would that matter to anything?

Bank accounts that are not credit accounts (i.e. no overdraft) have no impact in the scheme of things, the average account age is irrelevant, all lenders care about is good credit history (paying bills on time) and you having some stability e.g. keeping an old credit card running and being on the electoral role for as long as possible ideally at one location