Switching current account

[Nicol@]

Is there any downside to switching to a new current account (Any impact on credit rating etc)?

I notice that other banks offer what appear to be benefits, paying you to switch or giving lower fees when using a card abroad.

So is it something to consider?

[oOTomOo]

Don't forget to tell your employer..!

Some places have 'switching teams' that transfer over all your direct debits etc..

[Geordie boy]

I'm in the process of switching from HSBC to Santander. The £100 to switch and no fees on over drafts, bank charges etc appealed. I got given wrong advice from the person that opened my account and now my direct debits are all over the place and I'm spending my days off jumping money from one bank to another to so that bills can be paid correctly. So far i'm about £120 down due to returned drirect debit fees due to the bills coming out of the old or new account when they had no money in. Santander have agreed to pay some of it back.

If you have enough money in each of your banks to pay the possibility of 2 lots of direct debits then go for it. Sadly I don't so its cost me. Just on my way to my local branch for the 3rd time in 3 weeks to try and get some progress on it all!

[Nicol@]

Geordie boy said:

If you have enough money in each of your banks to pay the possibility of 2 lots of direct debits then go for it. Sadly I don't so its cost me. Just on my way to my local branch for the 3rd time in 3 weeks to try and get some progress on it all!

Thanks for the warning.

[rfisher]

I've just done this too.

Went pretty smoothly except for 1 big DD which I had to cover on debit card from the old account.

If you can get them to cough up the full £5k interest free (for 12 months) overdraft then it's a good way to get a 0% cash advance.

Bear in mind that 5% is only for the first £2.5k for 12 months after which it goes to 1%.

You need to deposit 1k per month to keep the T&C.

Takes ages to sort out the online banking security as it's done by 3 separate letters in the post.

Think I'm going to be switching annually from now on until the banks start behaving again.

[Nicol@]

So does it impact your credit rating as nobody has said so far?

[shakotan]

Geordie boy said:

I'm in the process of switching from HSBC to Santander. The £100 to switch and no fees on over drafts, bank charges etc appealed. I got given wrong advice from the person that opened my account and now my direct debits are all over the place and I'm spending my days off jumping money from one bank to another to so that bills can be paid correctly. So far i'm about £120 down due to returned drirect debit fees due to the bills coming out of the old or new account when they had no money in. Santander have agreed to pay some of it back.

If you have enough money in each of your banks to pay the possibility of 2 lots of direct debits then go for it. Sadly I don't so its cost me. Just on my way to my local branch for the 3rd time in 3 weeks to try and get some progress on it all!

Worse still, you've switched to possibly the worst bank in the UK.

[Broomsticklady]

Nicol@ said:

So does it impact your credit rating as nobody has said so far?

Hazarding a guess - given 'how long have you had your bank account' is a question asked when assessing credit, presumably yes?

[Nicol@]

Broomsticklady said:

Nicol@ said:

So does it impact your credit rating as nobody has said so far?

Hazarding a guess - given 'how long have you had your bank account' is a question asked when assessing credit, presumably yes?

That is what I wondered, but nobody has confirmed.

[revs88]

I'm just about to transfer from Lloyds to Citibank - was advised by Citibank to keep my account at Lloyds open because of the importance of having a stable and long term banking history for any credit rating checks.

So I've kept the Lloyds account open but migrated my salary and all the DD's and Standing orders across to my new account.

Richard

[revs88]

I'm just about to transfer from Lloyds to Citibank - was advised by Citibank to keep my account at Lloyds open because of the importance of having a stable and long term banking history for any credit rating checks.

So I've kept the Lloyds account open but migrated my salary and all the DD's and Standing orders across to my new account.

Richard

[Geordie boy]

shakotan said:

Geordie boy said:

I'm in the process of switching from HSBC to Santander. The £100 to switch and no fees on over drafts, bank charges etc appealed. I got given wrong advice from the person that opened my account and now my direct debits are all over the place and I'm spending my days off jumping money from one bank to another to so that bills can be paid correctly. So far i'm about £120 down due to returned drirect debit fees due to the bills coming out of the old or new account when they had no money in. Santander have agreed to pay some of it back.

If you have enough money in each of your banks to pay the possibility of 2 lots of direct debits then go for it. Sadly I don't so its cost me. Just on my way to my local branch for the 3rd time in 3 weeks to try and get some progress on it all!

Worse still, you've switched to possibly the worst bank in the UK.

So I am hearing! I've been told this several times since the switch. In all honesty I don't think they could be any worse than I have found HSBC. The 3 times I have been to the branch I have managed to see the same female advisor so that has been a help not having to explain my problem time and time again. I am told that £85 of what its cost me so far is back in my account, and the other money is to follow this week. I will wait and see! If this is then it will be a small step in the right direction.

Given the information and the experience so far, I'd say no don't swap, instead go to your current bank and explain whats on offer. If your bank value your custom they should try and keep you. If I knew what I know now I wouldnt do it again.

Ref credit scoring, it shouldnt be an issue if you keep funds in both account so you know that you are able to pay them from either account, that way no late payments showing, and for the sake of a month I shouldnt see it being an issue. For myself however, I have to wait and see if it does.

[ymwoods]

Nicol@ said:

Broomsticklady said:

Nicol@ said:

So does it impact your credit rating as nobody has said so far?

Hazarding a guess - given 'how long have you had your bank account' is a question asked when assessing credit, presumably yes?

That is what I wondered, but nobody has confirmed.

Yes, it will.

However, not as much as you would think. Generally if you have an ok to excellent credit rating anyway it will not change any decisions too much and won't change the decision from your new bank about any future loans you may want.

The only way that it would make a massive difference is if you had lots of missed payments on your history but they may have considered you on being faithful with the bank instead (knowing you won't just run off

[FamilyGuy]

ymwoods said:

Nicol@ said:

Broomsticklady said:

Nicol@ said:

So does it impact your credit rating as nobody has said so far?

Hazarding a guess - given 'how long have you had your bank account' is a question asked when assessing credit, presumably yes?

That is what I wondered, but nobody has confirmed.

Yes, it will.

Are you sure? It's a fair while since I worked for the world's largest credit reference agency but then it was about your electoral role presence, track record with service providers like BT and credit cards and how frequently, recently you've tried to obtain credit.

I've picked up my credit history from Equifax (it costs little money and is a legal right) occasionally over the last few years and my history with all sorts of people is there but nothing about changing bank accounts though I have.

Edited by FamilyGuy on Saturday 2nd October 03:03

[ymwoods]

FamilyGuy said:

ymwoods said:

Nicol@ said:

Broomsticklady said:

Nicol@ said:

So does it impact your credit rating as nobody has said so far?

Hazarding a guess - given 'how long have you had your bank account' is a question asked when assessing credit, presumably yes?

That is what I wondered, but nobody has confirmed.

Yes, it will.

Are you sure? It's a fair while since I worked for the world's largest credit reference agency but then it was about your electoral role presence, track record with service providers like BT and credit cards and how frequently, recently you've tried to obtain credit.

I've picked up my credit history from Equifax (it costs little money and is a legal right) occasionally over the last few years and my history with all sorts of people is there but nothing about changing bank accounts though I have.

Edited by FamilyGuy on Saturday 2nd October 03:03

I think its more to do with your track record with the bank and having lots of accounts for only a few months each that will lower your score somewhat. Being seen to have had an account for years rather than 2 months is just seen as good practice I believe. Like I said though it has very little bearing, but it will affect a credit score from the answer you give to the creditor on the application.

Weather this amount will be enough for it to be the difference between a yes and a no would depend on the rest of your finances and factors.