Effect on credit profile of switching current account?

fillerbunny

I'm fed up with Barclays and, having got to the point where I spend some of the month in credit, am considering finding a new current account. My credit history hasn't been brilliant (I've never missed a payment but I have been refused new credit cards several times in the last two years), and I'm worried about the effect switching banks will have on future credit applications. Can anyone shed any light on this for me?

Thanks!

fillerbunny

p.s. sorry if this should have gone into the current accounts section of the forum, but it seemed to fit better here...

CLAPTON

why have you been refused CCs in the past
why are you planning more credit applications

you dont have to close Barclays a/c once you open a new one so you can still say you have been with your a/c for xxx years.

fillerbunny

I was never able to find out why I was refused - there was never anything 'wrong' when I got reports from equifax etc. I put it down to having quite a few (four) credit card accounts, all with a fair amount on debt on them, and also making several applications within too-short spaces of time.

I'm not planning future credit applications, I would just like to know I had the option if I chose to! I am also hoping to get a mortgage in a couple of years time, and don't want to jeopardise that.

I'm not comfortable with keeping the old account open - doesn't that tend to violate T&Cs?

exel1966

Changing your current account won't affect your rating unless there is an overdraft involved and the amount changes.
Because you say your credit rating is poor you may possibly have difficulty in opening an account elsewhere though. Have you actually obtained a copy of your credit record to try an ascertain where the problem may be ? It might help you out.

fillerbunny

exel1966 wrote: »

Have you actually obtained a copy of your credit record to try an ascertain where the problem may be ? It might help you out.

I did, and they were all ostensibly fine, so I can only assume it was the things I listed above. I made the mistake of applying for a few cards within a short space of time and I'm sure that didn't help.

I've since got rid of all my cards but one, and that has !!!!!! all on it, so I hope I'll make a less scary business prosect now!

CLAPTON

You need to use your credit card regularly and pay it off properly as this will be reported on your credit record and you will be seen to handle credit well.

If your applications are recent them it may be best to wait 3/4 months.

There is usually no reason why you can't have more than one bank a/c .. in fact millions of people do.

exel1966

As previously said numerous applications in a short space of time is not good, however reducing your overall available credit by cancelling your other cards should work in your favour.

How many applications exactly and in what space of time ? Were they before you cancelled the other cards or after ? Were they cancelled after you'd received your credit report and are they marked as settled on your report ? All will have a impact on your applications.

fillerbunny

While I appreciate all your helpful thoughts, what I really want to know is if opening a new current account will have any effect in future. When you apply for credit, one of the normal questions is about how long you have had your current account for, so I presume it matters.

I'm sure lots of people do have many accounts but I was under the impression that only the one you have your salary paid into counts as your current account and that this was important. I'm happy to be corrected if I'm wrong...

exel1966

Yes the longer you've had the account the better, but that doesn't mean you can't have another account. When you apply for new credit you put the length of time applying to the older account and not the new one. It doesn't matter to the CRA's how many current accounts you have if there is NO overdraft attached to it. You're impression is incorrect.

CLAPTON answered that very question in his earlier post.

'you dont have to close Barclays a/c once you open a new one so you can still say you have been with your a/c for xxx years'.

fillerbunny

Fab - thank you.