can multiple current accounts affect credit?

greyster

I have 4 current accounts from my student days, 2 of which I rarely use. Does having them open affect my credit card applications?

I only have one credit card but interested to know if my accounts do affect my credit limit.

Thanks

M_Thomson

greyster wrote: »

I have 4 current accounts from my student days, 2 of which I rarely use. Does having them open affect my credit card applications?

I only have one credit card but interested to know if my accounts do affect my credit limit.

Thanks

Do these accounts have overdrafts?

YorkshireBoy

greyster wrote: »

I only have one credit card but interested to know if my accounts do affect my credit limit.

Any agreed overdraft facility will be seen by CC providers when they search your file (that's if the current account is reported - many aren't if they're managed well), and this 'available' credit will be taken into account when setting credit limits.

greyster

Although not used, I do believe these cards do have overdraft facilities.

When I was at university I did use them (0%).

Thanks... I think I'll close down the accounts no longer used. I was going to keep them open just incase I ended up taking a morgage or an additional service with one of them. Makes life easier?

theyellowlizard

I'm in a similar position to Greyster. I recently moved my student current account from Barclays (morons) to Co-Operative. However, my old account wasn't closed, so I can still use it if I want to.

My plan is to keep 1p in the Barclays account (basically so it costs THEM money for me to have an account there because they'll still have to send me statements etc - sneaky, huh?) and ask them to remove my overdraft facility as I obviously won't need it.

According to the above advice, this wouldn't adversely affect my credit rating because I wouldn't be borrowing any money off them (through the overdraft) - but would the presence of two current accounts boost the rating or not?

Advice appreciated!

PBA

YorkshireBoy wrote: »

(that's if the current account is reported - many aren't if they're managed well

That's the key point, current accounts are often not listed on your credit file, though the search will show up when you apply for a new one. The only way to know for sure if your current accounts show up is to get a copy of your credit file.

ShelfStacker_3

I've been with a looot of banks, and have had pretty much all my accounts listed on my credit file, including my very first bank account (opened in 2004, closed 2007, no O/D limit and so showed a perfect payment record). Then closed my Lloyds accounts because they're... well, not very nice. As soon as all three accounts were closed, because they were marked as settled this is roughly the same from Experian's point of view as repaying a loan, and consequently they recorded a 40-something point boost in my credit score!

My point, and I know its taken me a while to get round to it, is that if your unused current accounts are listed on your credit file it's worth your while to send out a letter or go in branch to close them.