To open a new bank account or pay £30

kv11x

Me and the wife have been paying monthly to loqbox to try and improve our credit rating after paying off our debt. We have a remortgage next year and the wife doesn't want us to open a new bank account to get our money back. Our options are to pay £30 each to get our cash or open a bank account via them to get our cash back for free. 

What's best? Also does anyone know when I should see a difference on my credit rating for this?

Thanks

[Deleted User]

Take some time to read through this subforum, and Sticky's, and you'll learn that various ways of attempting to increase your rating to becoming a better risk is a futile exercise.

Simply be a responsible borrower, and money manager, and it all falls into place naturally - don't spend time being absorbed into the whole Credit Score obsession.

GrumpyDil

Opening a new bank account is very unlikely yo have any impact on your credit worthiness for a remortgage next year. 

I'd definately open one to save the 60.00. If you are worried about a credit check then I'd look at Revolut/Starling. (There are often refer a friend offers on Revolut so you could even get paid to open the account if you can get a referral link.)

Just reread how it works. I'd still open a new account but note it has to be through them to save the money. 

la531983

Not wanting to open a bank account to get some money back, in order to preserve a three digit number which is meaningless and nobody sees?

Get the bank account opened now, please. One with zero overdraft will have no impact whatsoever, and even one with an overdraft would have no impact if you dont use it.

MrFrugalFever

There are various banks which offer standard current accounts without doing a hard credit search, I believe Chase used to be a soft search and Kroo (this may have changed now).

If you are looking at remortgaging next year, I would suggest that a new bank account opened now is likely to have little to no impact on this. If you do open a new bank account to save from paying the fees on LoqBox you may also be able to use it as a donor account later down the line for CASS offers (there are four banks offering this currently up to £200).

Please don't be chasing the whole improving credit score thing as mentioned above, just focus on minimal credit spending and pay everything back in full and on time. Lenders want to know that you can spend responsibly and pay them back without hassle.

Poet1291

I recently did this and opened an account with Monese. It shows up as a new current account on all the credit agencies but not a hard search. I would just open a free account and save the £60.