int.students

Hi,

I'm an international student currently finishing my degree and moving back home soon. I've been told I should keep a bank account open just in case I were to move back in the future, especially for credit rating purposes. The only thing is that I've got couple of accounts and not sure which one to keep.

I've got a current account with Halifax, a basic with HSBC and savings (non-ISA) with Halifax + Barclays. I'm thinking of keeping my HSBC one since it's with an international bank. Just have some questions to help me decide on the best choice in case I would move back to the UK later on:

1) Does it matter what type of account I keep (savings, basic or current) ?

2) Will the age and usage of an account affect my credit rating or other things if I move back? Asking this because the account I want to keep is the most recent one and I haven't used it a lot.

Any tips or suggestions would be much appreciated. Thanks

Cynic

If you have no money in the account, most UK banks will close the account after 12 months of inactivity. If you have money in the account, then they make the account dormant. Here's a link to the HSBC document.

int.students

Good to know but planning anyway to keep using it so it's unlikely it will become dormant. Just wondering if keeping my most recent and not so used one is a bad idea or not in terms of credit rating or that doesn't matter?

Cynic

I don't think the length of time you have a bank account matters that much; the Money Advice Service offers this as being relevant to affecting your credit rating:

• High levels of existing debt.
• Missing or making late payments on anything from your mortgage, credit card, personal loan, gas or electricity bills will stay on your credit file for six years.
• If you get a county court judgment (CCJ) (called a decree in Scotland) for an unpaid bill this will have a serious impact on your credit score. CCJs stay on your file for six years.
• Applying for lots of credit at once.
• Open credit cards accounts that you never use.
• Mistakes on your credit report, which lenders check as part of the credit score process.
• Not being on the electoral register.
• Moving home a lot.
• Being tied into any joint form of credit such as bank accounts, loans or mortgages with someone who a poor credit history.

Hope this helps.