Opening & Closing Bank Accounts

[Rambo3]

Does doing this hurt your credit?
Or reputation?
I know there is not section for this to be recorded on your credit score.. but there has got to be some record of how many times or how many accounts someone has and closes/opens.

CLosing a bank account can't be good.. right?

[Haidukken]

I have opened few in recent weeks and never really had a problem with checks. It's a current/basic account that you are going for, not a credit card.
I also don't see it being a bad thing, if you decide to close a bank account in the future. People open and close bank accounts all the time.
I guess it's the classic "slowly and surely" thing again.
If you apply for 20 bank accounts on one day and make some mistakes with details, then couple of weeks later start closing them all down again, it might raise few eyebrows.

[Keithlan1978]

I'd also like to know about this, I've opened 4 basic accounts over the past 2 weeks with 4 different banks and my plan is to wait a few weeks maybe a month and open a second basic account with each of these banks to hopefully give me 8 babk accounts to use on PayPal accounts

If in time though these PayPal or eBay accounts go down is it a major issue to close that bank account down linked to PayPal then wait a week or two and open another account at the same bank that I closed the account with and can this be repeated over and over further down the line as eBay or PayPal accounts go down?

Sorry to jump in on OP thread but I think they are wanting to know the exact same as me

[yankee]

In the USA, no it does not effect your credit score at all in any way. It may have an impact of Check Systems especially if you are opening and closing rapidly or leaving negative balances(never do this IMO)

If you are burning accounts regularly then you should also look into other options similar to bank accounts but not connected to the banking system directly.

Europe is altogether different as far as banking goes.

[RosieTosie]

Originally Posted by Keithlan1978

I'd also like to know about this, I've opened 4 basic accounts over the past 2 weeks with 4 different banks and my plan is to wait a few weeks maybe a month and open a second basic account with each of these banks to hopefully give me 8 babk accounts to use on PayPal accounts

If in time though these PayPal or eBay accounts go down is it a major issue to close that bank account down linked to PayPal then wait a week or two and open another account at the same bank that I closed the account with and can this be repeated over and over further down the line as eBay or PayPal accounts go down?

Sorry to jump in on OP thread but I think they are wanting to know the exact same as me

4 bank accounts should be enough for about 6 months Keithlan, any quicker than that and you could start to find you are being refused bank accounts which is the last thing anyone wants to happen. Refusal of bank accounts will certainly impact on your credit file. Don't sell on all four of your accounts straight away, make them last the six months by saving them to open every so often. They may not all survive, but at least they won't all go down at the same time!

[RosieTosie]

Originally Posted by Rambo3

Does doing this hurt your credit?
Or reputation?
I know there is not section for this to be recorded on your credit score.. but there has got to be some record of how many times or how many accounts someone has and closes/opens.

CLosing a bank account can't be good.. right?

You are right Rambo3, in the UK it would damage a persons credit file if they open to many bank accounts over a short period of time. For example, over a six month timescale, 2-3 accounts would definately be enough, and these days with the extra PayPal ID checks, it is probably not wise to open more than one at a time especially for newer sellers who don't have enough experience to handle the situations that arise. Opening one every couple of months is probably enough to handle. There should be no rush to close accounts either.

[Keithlan1978]

Originally Posted by RosieTosie

4 bank accounts should be enough for about 6 months Keithlan, any quicker than that and you could start to find you are being refused bank accounts which is the last thing anyone wants to happen. Refusal of bank accounts will certainly impact on your credit file. Don't sell on all four of your accounts straight away, make them last the six months by saving them to open every so often. They may not all survive, but at least they won't all go down at the same time!

Thanks RosieTosie maybe I'll leave opening anymore bank accounts for a few months then and if I set up 4 PayPal accounts with these that I have I won't use them all at once only one maybe 2 at a time

The reason I was going to open more bank accounts was to set up more PayPal accounts so would I be ok to set up a good few PayPals (over a few weeks not all at once) but not add a bank account to any of them till I need them further down the line would that not be a problem the fact that they'd be set up but not be verified or have any activity for weeks/months till I actually need them?

yes it does have a negative impact on your score, you can even check with experian as it will show up all the details there which the banks and everyone else can see

[yankee]

Originally Posted by RobMele

yes it does have a negative impact on your score, you can even check with experian as it will show up all the details there which the banks and everyone else can see

Not in the USA.

[RosieTosie]

Originally Posted by Keithlan1978

Thanks RosieTosie maybe I'll leave opening anymore bank accounts for a few months then and if I set up 4 PayPal accounts with these that I have I won't use them all at once only one maybe 2 at a time

The reason I was going to open more bank accounts was to set up more PayPal accounts so would I be ok to set up a good few PayPals (over a few weeks not all at once) but not add a bank account to any of them till I need them further down the line would that not be a problem the fact that they'd be set up but not be verified or have any activity for weeks/months till I actually need them?

Would be no real point opening 'a good few' paypal accounts that were not verified by bank accounts for them just to be left for weeks or months until you decided to use them Keithlan, they would just attract unwanted prying eyes from paypal when you did eventually start to activate them. There would be no real benefit to doing this, you might as well just wait and create and use them as you need them and are ready to add bank accounts to them.

[Keithlan1978]

Originally Posted by RosieTosie

Would be no real point opening 'a good few' paypal accounts that were not verified by bank accounts for them just to be left for weeks or months until you decided to use them Keithlan, they would just attract unwanted prying eyes from paypal when you did eventually start to activate them. There would be no real benefit to doing this, you might as well just wait and create and use them as you need them and are ready to add bank accounts to them.

Thanks RosieTosie the only reason I asked is cos I've seen loads of people saying they'll set 5-10 eBay and PayPal accounts up per week (some say 5 a day) then as accounts go down they just use the accounts they've set up plus with the eBay accounts doesn't it age them?

Thanks again

[GreenBean]

here are two different sites regarding banks & credit.

first is for US users:

Banking and your credit score

2nd is a highly specialised consumer site in the UK:

Credit scores: Boost your credit rating - MoneySavingExpert


stealth sellers should (always) consider making use of their free credit reports.

[Rambo3]

Originally Posted by GreenBean

here are two different sites regarding banks & credit.

first is for US users:

Banking and your credit score

2nd is a highly specialised consumer site in the UK:

Credit scores: Boost your credit rating - MoneySavingExpert


stealth sellers should (always) consider making use of their free credit reports.

I like the first link and how the clearly explain what a credit score is.
The score of ones probability in paying back borrowed money.
In my opinion I do not think this has anything to do with how many bank account one has... but could have something to do with how rapidly one is opening and closing them.

Think about it in a non-stealth stand point, and look at it in a personal finance stand point. Why would someone close a bank account?

Are finances getting tight.. hmm. If you can't afford to keep a checking account above balance to avoid a over draft fee. what makes me think you're gonna pay me my money in time?

[yankee]

Originally Posted by Rambo3

I like the first link and how the clearly explain what a credit score is.
The score of ones probability in paying back borrowed money.
In my opinion I do not think this has anything to do with how many bank account one has... but could have something to do with how rapidly one is opening and closing them.

Think about it in a non-stealth stand point, and look at it in a personal finance stand point. Why would someone close a bank account?

Are finances getting tight.. hmm. If you can't afford to keep a checking account above balance to avoid a over draft fee. what makes me think you're gonna pay me my money in time?

Bank accounts are NOT on USA credit reports.
What you are saying is NOT available to a creditor when you apply for credit.

The ONLY way a bank account would show on a credit report in the USA at all is if you were significantly negative and in collections. Even then it would be a derogatory collection mark and not show bank account info.