Improving credit rating - savings accounts

savingsguy

Hi there,

I've just been reading up on how to improve my credit rating. One of the points is not to have too many accounts.

Does anyone know if this refers to bank savings accounts? :rolleyes:

Many thanks
S

Kavanne

No because savings accounts don't have credit facilities.

Richard019

Kavanne wrote: »

No because savings accounts don't have credit facilities.

In that case, I know when I open a current account it does a credit check which is a small knock. If I decline the idea of having an overdraft on it does it fall into the same bracket as a savings account on that basis?

I knew that having lots of available credit (as in unused overdrafts and credit lmits) could make it harder to get more but I wasn't aware about the number of accounts making a difference.

YorkshireBoy

Richard019 wrote: »

If I decline the idea of having an overdraft on it does it fall into the same bracket as a savings account on that basis?

I would think not, for a couple of reasons...

1. The account has the 'potential' to have an overdraft facility added...and it may be 2 months or more before this facility is reported to the CRA, and

2. If a 30 leaf cheque book and £100 cheque guarantee card is provided, the account has the 'potential' to go £3,000 overdrawn.

'Savings' accounts have neither of the above.

Kavanne

That's what I would have said, Yorkshire Boy but wasn't sure how to word it, thanks!