Switch Guarantee affecting my Credit Score

TCDSTM18

Hello,

I recently used the Swith Guarantee offered by a bank to transfer my direct debits (dd) and balance from my old account to my new account. However, as I switch banks so infrequently, I didn't realise that this would reduce my credit score by 50 points.

Is there an easy way of retaining my credit history with the old bank while moving all my dd and balance to the new account when I move bank next time? I know there's quite a few deals for switching at the moment but I think it's a bit unfair to have my credit score affected like this when I haven't missed any payments.

Many thanks in advance,

Theo

Spies

Why are you bothered about a small drop in credit score? 

BoGoF

Spies said:

Why are you bothered about a small drop in credit score? 

Even more so when it's a fantasy figure that nobody else sees.

eskbanker

TCDSTM18 said:

I recently used the Swith Guarantee offered by a bank to transfer my direct debits (dd) and balance from my old account to my new account. However, as I switch banks so infrequently, I didn't realise that this would reduce my credit score by 50 points.

Is there an easy way of retaining my credit history with the old bank while moving all my dd and balance to the new account when I move bank next time? I know there's quite a few deals for switching at the moment but I think it's a bit unfair to have my credit score affected like this when I haven't missed any payments.

As above, your score is fictitious and meaningless, but just to be clear, the act of opening a new current account (rather than the switch itself) is effectively taking on a new credit facility, even if you don't apply for an arranged overdraft, so is recorded on your credit files.  There is no 'credit history' to be 'retained' with the old bank as such, anything positive or negative on those files before the new account is opened will still be there afterwards....

Nasqueron

I get regular emails about searches from bank switches, means absolutely nothing unless you are about to apply for a mortgage in which case any credit application is a bad idea. A drop in the fake score or free money? No brainer.

surreysaver

You just need to wait a couple of months or so, and your score will return to where it was. Not that anyone apart from you will see it.