Home› Advice

Opening up multiple bank accounts affect credit score?

[Deleted User][Deleted User] Posts: 23
Forum Member
✭
in Advice #1
Not credit cards/accounts- I don't do those.

I have an hsbc and natwest normal current account and tsb classic plus account. I also have a student santander account.

I opened my first tsb plus account last week, can I open another one this week or will it seriously affect my credit score?

I also have a mobile contract phone which I pay well if that helps...

Cheers

Comments

  • Philip WalesPhilip Wales Posts: 6,373
    Forum Member
    ✭
    #2
    Why would you want so many bank accounts, I have 4, 2 current (one used to pay bills from) 1 Savings account (holidays etc) and an ISA

    Not sure it would effect your Credit rating, but it may make the bank suspicious.
  • soulboy77soulboy77 Posts: 24,460
    Forum Member
    ✭✭✭
    #3
    Same question, why would you need all these accounts?
  • d'@ved'@ve Posts: 45,507
    Forum Member
    ✭
    #4
    This Honest wrote: »
    Not credit cards/accounts- I don't do those.

    I have an hsbc and natwest normal current account and tsb classic plus account. I also have a student santander account.

    I opened my first tsb plus account last week, can I open another one this week or will it seriously affect my credit score?

    I also have a mobile contract phone which I pay well if that helps...

    Cheers

    Extra accounts at the same bank in general won't affect it.

    If they are all with different banks, it might do, if they use "credit scoring" systems and there is a relationship between people who have accounts at multiple banks, and people whose loans or overdrafts go bad. I've no idea how many banks need to be involved or even if this is the case, but it might be.

    There is no way of finding out exactly how banks and credit agencies score these things, the exact factors used are kept secret among a few senior employees because of the potential for misuse.
  • lem ramsaylem ramsay Posts: 1,076
    Forum Member
    ✭✭✭
    #5
    A high number of searches on your credit file in a short space of time could be detrimental... savings accounts don't get reported to the CRAs I believe.

    Overdrafts could be a problem, but you really should go to moneysavingsexpert forum, who have a section dedicated to credit files and see what people on there (who are a lot more knowledgeable) say.
  • TUTV ViewerTUTV Viewer Posts: 6,236
    Forum Member
    ✭
    #6
    Philip Wales wrote: »
    Why would you want so many bank accounts, I have 4, 2 current (one used to pay bills from) 1 Savings account (holidays etc) and an ISA.

    That's the absolute bare minimum of accounts you should have.

    Then there is the account to put non-PAYE income through, account for Stock Exchange transactions, account for dividends, spare current accounts, then notice-savings accounts & bonds then a few extra savings accounts for convenience...
  • MentoristMentorist Posts: 603
    Forum Member
    ✭✭
    #7
    Why have so many accounts? Well with the TSB account mentioned they pay 5% interest but only up to 2000 pounds so it makes sense to open as many of them as you can (if you are lucky enough to have that much money). You are allowed 2 classic pluses in your name and two joint. If you go to the money saving expert forums there are people who have loads of accounts that they switch money backwards and forwards between to get the most interest possible. Great if you've got the time and patience!
  • [Deleted User][Deleted User] Posts: 23
    Forum Member
    ✭
    #8
    Mentorist wrote: »
    Why have so many accounts? Well with the TSB account mentioned they pay 5% interest but only up to 2000 pounds so it makes sense to open as many of them as you can (if you are lucky enough to have that much money). You are allowed 2 classic pluses in your name and two joint. If you go to the money saving expert forums there are people who have loads of accounts that they switch money backwards and forwards between to get the most interest possible. Great if you've got the time and patience!
    This is what I plan to do! I have thousands to spare so I'll open up one soon.
  • Keefy-boyKeefy-boy Posts: 13,608
    Forum Member
    ✭✭
    #9
    TUTV Viewer wrote: »
    That's the absolute bare minimum of accounts you should have.

    Then there is the account to put non-PAYE income through, account for Stock Exchange transactions, account for dividends, spare current accounts, then notice-savings accounts & bonds then a few extra savings accounts for convenience...
    Do you think you impress anyone other than yourself?
  • [Deleted User][Deleted User] Posts: 469
    Forum Member
    ✭
    #10
    A good reason for multiple bank accounts is that it mitigates the effect of daily withdrawal limits and state-sponsored account confiscation schemes that pop up during a scheduled economic crisis.
  • YosemiteYosemite Posts: 6,192
    Forum Member
    ✭
    #11
    Bypassall wrote: »
    A good reason for multiple bank accounts is that it mitigates the effect of daily withdrawal limits and state-sponsored account confiscation schemes that pop up during a scheduled economic crisis.

    I didn't realise that economic crises were pre-planned these days.

    Whatever will those pesky politicians think up next?
  • PuckyPucky Posts: 4,519
    Forum Member
    ✭✭✭
    #12
    lem ramsay wrote: »
    A high number of searches on your credit file in a short space of time could be detrimental... savings accounts don't get reported to the CRAs I believe.

    Overdrafts could be a problem, but you really should go to moneysavingsexpert forum, who have a section dedicated to credit files and see what people on there (who are a lot more knowledgeable) say.

    No, savings accounts don't get reported, also some basic bank accounts don't either (ones where there's no debit card or overdraft facility). While there's no specific effect on your credit score for having lots of accounts it will be the credit searches that will harm your score. When checking your credit score, lenders will like to see no more than one or 2 searches per month.
  • TUTV ViewerTUTV Viewer Posts: 6,236
    Forum Member
    ✭
    #13
    Keefy-boy wrote: »
    Do you think you impress anyone other than yourself?

    I'm sorry you feel distressed over the way I conduct my financial affairs.

    Perhaps one day you'll understand the usefulness of a structured personal financial portfolio.
  • Keefy-boyKeefy-boy Posts: 13,608
    Forum Member
    ✭✭
    #14
    TUTV Viewer wrote: »
    I'm sorry you feel distressed over the way I conduct my financial affairs.

    Perhaps one day you'll understand the usefulness of a structured personal financial portfolio.
    I understand it better than you could imagine, but your constant need to show off to a forum of strangers is pathetic.
  • TUTV ViewerTUTV Viewer Posts: 6,236
    Forum Member
    ✭
    #15
    Keefy-boy wrote: »
    I understand it better than you could imagine, but your constant need to show off to a forum of strangers is pathetic.

    I'm sorry I have made you feel sympathy for me. I can assure you it is unnecessary.

    Hopefully the feeling has now passed.

    I am grateful that you have been paying regular attention to my posts over the last decade though.
Sign In or Register to comment.