How long does a closed current account (no overdraft ever) stay on the credit file

topduck111

Hey everyone,

I searched the forums but was not able to find an appropriate answer, most were to do with loans/credit cards etc.

I am planning to close a current account with Monzo as I am not using it.

I would like to know when this current account will drop off from my credit file.

I use MSE Credit Club and ClearScore so I can monitor this.

Thanks in advance!

TopDuck111

fatbelly

6 years after closure

eskbanker

topduck111 said:

I am planning to close a current account with Monzo as I am not using it.

I would like to know when this current account will drop off from my credit file.

Out of curiosity, what do you see as the significance of a closed current account on a credit file?

CliveOfIndia

A current account with no overdraft will have no impact on your credit history anyway (since, by definition, it's not a credit product).  Yes it'll show on your report, but it won't make any difference as to how lenders view you.

The only time it would have an impact is if it shows that you're regularly using your overdraft - but since you say that's not the case, it'll make not one jot of difference.

topduck111

Thank you, I was just curious as to what happens, I have never closed a current account. Now I know !

CliveOfIndia

topduck111 said:

Thank you, I was just curious as to what happens, I have never closed a current account. Now I know !

As a slight aside, you may wonder why any current accounts that do show on your credit file show a balance of zero, if you have no overdraft.  Even if you've got a million quid sitting in the account, it'll show as zero.  That's because your credit file is only concerned with credit.  If you're using £100 of your overdraft, it'll show as £100 (because the bank are lending you £100, and you owe it back to them).  But if you have a positive balance in your account it'll always show as zero.

And if you don't have an overdraft facility available on the account, it may not appear on your credit report at all.

But either way, it's nothing to fret about - lenders are only really interested in what level of outstanding debt you have, and how you've been managing that debt.

topduck111

Thank you, I have managed to never have overdraft till date, I always decline it. I was thinking I was having an excessive number of current accounts so planned to start closing unused ones - I know I could use them to switch but I am not very good at keeping track of things so I don't bother. Having them stick around for 6 years is a bit weird but those are the rules I guess