Does the number of current accounts you have affect your credit rating


#1

I currently have 3 current accounts although I only really use Starling.

  • All 3 accounts show on my credit profile
  • 2 of them (not Starling) have an unused overdraft totaling £750

My question is would using current account switch and closing down these other 2 accounts have a positive effect on my credit profile?


#2

From what I understand only the fact that you have overdrafts on these current accounts will affect your credit rating.

Companies use their own scoring systems so some will see available credit as a positive and some will see it as a negative so I don’t think there’s a right answer for you.


#3

Yes, I’m sure I saw that some like to see that you could have credit, but don’t use it, therefore a plus in some companies eyes that you are prudent with money.


#4

Agreed. Generally having accounts you don’t use isn’t a positive. Clearing debt or closing redundant accounts will be favoured, though without necessarily reflecting on your credit score. The score in itself is often meaningless and will vary across sites.


#5

The number of accounts has absolutely no affect on your credit rating, the only affect is your credit utilisation that will have an affect.

10 accounts with 0 overdraft and a balance will be just the same as 1 account with 0 overdraft and a balance.

However 10 accounts with 90% overdraft usage means your credit utilisation is high so you will be a high risk.

If you check your reports with credit reference agencies, it will only show a negative when your actual utilisation of your overdraft is high.


#6

I suspect most ‘credit aware’ people on here probably use at least one of these anyway, but if you want to actually see your credit file and what current score the Credit Agencies think you’ve got, you can now get all 3 full reports from the main agencies for free through other services.

Equifax - this is available through Clearscore.com (http://www.clearscore.com)
Experian - this is available through the 'Money Savings Expert Credit Club (https://www.moneysavingexpert.com/creditclub)
Callcredit - this is available through Noddle (http://www.noddle.co.uk)

Obviously, the actual ‘credit score’ they give you is not actually used by services to decide on your credit worthiness - it’s just useful to track over time so you can see if there’s an issue or if things are getting better.


#7

I use all three, it’s the only way to truly see what your report really contains.

Clearscore also has a fairly decent app which its updating constantly.


#8

Yeah. Ignore the scores the Credit Reference Agencies show you, it’s meaningless, and they make it up. But checking all three is good to ensure your details are up to date and nothing untoward is present on the bits of the report visible to actual lenders, who will check your file(s) when you apply for credit.


#9

Thanks,

I think I will close 1 of the accounts as I have no need for it and not used it except for a £5 standing order circling all accounts in over a year.

I have also checked all 3 providers with the links above and strangely the only one not to show 3 current accounts is Callcredit who only show the 2 with approved overdrafts.

All info on the 3 reports seems to be correct.


#10

So your Starling account appears on Equifax and Experian but not Callcredit? Mine appears on Equifax and Callcredit but not Experian.