Opening A Lot of Bank Accounts= does it effect Credit? - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > PayPal Talk

PayPal Talk PayPal Forums. General issues related to PayPal.

Reply
 
Thread Tools
  #1  
Old 09-19-2013
Jack's Avatar
Senior Member
 
Join Date: Dec 2012
Posts: 116
Thanks: 12
Thanked 25 Times in 22 Posts
Activity: 0%
Longevity: 53%
iTrader: (0)
Send a message via Skype™ to Jack
Default Opening A Lot of Bank Accounts= does it effect Credit?

Hey everyone! I know that this topic has been hit before a few times, but I think it hasn't been touched in a few years (3 I believe), but then again I might have missed a thread...anyway

I was wondering about the opening and closing of bank accounts. I know how to stealth well, and have been doing it for a while now. I know that you are suppose to space out the opening and closing of accounts. But does having many bank accounts ( 10+ accounts ) hurt your credit score what so ever, and does closing these accounts out hurt your credit?

We know that closing and opening many accounts at one time can raise some flags. It's all about building relationships with these banks, but what if you were to open and close 10 banks within the year. Would that hurt your credit? Just wondering if anyone knew 100%

ps: I understand that it would be crazy to open this many accounts, and close them, I am just figuratively speaking stealthiers
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 09-19-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,219
Thanks: 895
Thanked 4,060 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

It depends. There are two potential issues. The first is with the mainstream credit bureaus (Transunion, Equifax and Experian) and the second is with ChexSystems.

Some banks, before opening an account - at least the first account - will check your credit history. A couple of inquiries should not have much of an effect on your credit score. Every inquiry WILL affect your score, but not by much. However, having 10 inquiries in a year will definitely lower your score. When you have a lot of inquiries that are not explained by opening a mortgage or a car loan, it looks like you are desperate for credit. That is a red flag for lenders. It is NOT "bad" credit, since there is no default or late payments, but lenders don't like to see a lot of recent inquiries. One or two is fine. Ten is a red flag.

ChexSystems is generally not used by lenders and is not taken into account with credit scores, such as FICO. When banks look at your ChexSystems report, the main thing they are looking for is to see if you left another bank "holding the bag" so to speak for bounced checks or otherwise owing money. Still, having a lot of accounts recently opened or closed can be a red flag to other banks since most people don't generally open or close too many bank accounts in a short period of time.

It all depends on the bank and what they use (if anything) when deciding to open an account. If you leave a bank owing money, then it could go to collections and THAT will usually be reported to the credit bureaus and cause "bad credit".

For the record, I've had over 18 years of experience in the credit and collection industry.
Reply With Quote
The Following 3 Users Say Thank You to jeffweico For This Useful Post:
An0nym0u$ (09-19-2013), GreenBean (09-19-2013), Sandy D (09-19-2013)
  #3  
Old 09-19-2013
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 58,567
Thanks: 4,633
Thanked 7,146 Times in 6,512 Posts
Activity: 100%
Longevity: 77%
iTrader: (7)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

When you open a bank account, you get a SOFT credit check done - doesnt really affect your score because you arent asking for credit/loan.

That being done, you do want to space out account openings since banks can see soft checks and be weary of why opening so many accounts in a short time with different banks.

10 bank accounts in a year...1 per month could be fine actually - rotate between banks. You have many banks to choose from, if you can access them
Reply With Quote
The Following User Says Thank You to rsot For This Useful Post:
An0nym0u$ (09-19-2013)
  #4  
Old 09-19-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,219
Thanks: 895
Thanked 4,060 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

Quote:
Originally Posted by rsot View Post
When you open a bank account, you get a SOFT credit check done - doesnt really affect your score because you arent asking for credit/loan.
I have to add that this is not always true. It SHOULD be, but there ARE some banks that do a "hard pull" when you apply for a checking account. ING Direct is one of these. Chase will also do this under certain circumstances, such as when you apply for overdraft protection. There are others as well. If you want to know if a particular bank does a "hard" or a "soft" pull, try using Google to find the information or the search function on the FICO Forums.

The difference between a "hard" and a "soft" pull is this: A HARD PULL is visible on your credit report for 2 years. Not only can YOU see it if you request your credit report, but OTHERS who pull your report will see it as well. A SOFT PULL is only visible to YOU and the CREDIT BUREAU.

Most SOFT PULLS are done by your current creditors to watch for signs that you are getting into trouble financially. While the practice of universal default - raising your interest rates because you are behind on another bill - has been banned, credit grantors CAN still cancel your account or reduce your credit line if they see signs of financial weakness on your credit report.

Other reasons for SOFT PULLS include employer checks, bank offers to extend credit to you that you did not apply for, some apartment rentals, etc.

The SAFE thing is to assume that EVERY PULL is a HARD PULL. The fact is, ANY creditor that has "permissible purpose" CAN do either a hard or soft pull. There have been several attempts to codify this into law to regulate hard vs soft pulls, but none of those attempts have gone anywhere yet to my knowledge.

If you want to learn more about hard vs soft pulls in an easy to understand manner, try:

Hard Credit Pull vs Soft Credit Pull [Infographic] | Lendio

Last edited by jeffweico; 09-19-2013 at 02:25 PM.
Reply With Quote
The Following 3 Users Say Thank You to jeffweico For This Useful Post:
An0nym0u$ (09-19-2013), GreenBean (09-20-2013), madmuppet303 (09-24-2013)
  #5  
Old 09-19-2013
Jack's Avatar
Senior Member
Threadstarter  
 
Join Date: Dec 2012
Posts: 116
Thanks: 12
Thanked 25 Times in 22 Posts
Activity: 0%
Longevity: 53%
iTrader: (0)
Send a message via Skype™ to Jack
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

Thank you everyone! I think this information can help a lot of people!
Reply With Quote
  #6  
Old 09-19-2013
GreenBean's Avatar
Executive [VIP]
 
Join Date: Sep 2007
Posts: 42,043
Thanks: 5,509
Thanked 9,021 Times in 7,036 Posts
Activity: 31%
Longevity: 95%
iTrader: (6)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

Quote:
Originally Posted by rsot View Post
When you open a bank account, you get a SOFT credit check done - doesnt really affect your score because you arent asking for credit/loan.


This is NOT the case for every bank in the USA.

Could you confirm your source for this statement please



I replied via tapatalk and saw jeffweico's response later.

Please respond though
Reply With Quote
The Following User Says Thank You to GreenBean For This Useful Post:
Sandy D (09-19-2013)
  #7  
Old 09-20-2013
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 58,567
Thanks: 4,633
Thanked 7,146 Times in 6,512 Posts
Activity: 100%
Longevity: 77%
iTrader: (7)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

I agree wholeheartedly that a HARD pull is done when you apply for overdraft protection.

I am speaking more from experience with Canadian banks (as you can imagine) - all my accounts with no overdraft AND no credit card application were soft pulls.

I can see your point about banks in the USA since there are much more choices of banks there.

I would add that when a person goes to open an account, he should ask "Hey is a soft pull or hard pull of credit score being done? I am in the process of seeking mortgage (etc.) so I dont want my score being affected" - I used to do that to find out at every bank when I go open the accounts.

It also shows to the account manager/agent that you are savvy to the banking affair.
Reply With Quote
  #8  
Old 09-20-2013
Executive [VIP]
 
Join Date: Oct 2011
Posts: 529
Thanks: 118
Thanked 157 Times in 116 Posts
Activity: 0%
Longevity: 62%
iTrader: (0)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

Soft pulls do not impact your credit score.
Reply With Quote
  #9  
Old 09-20-2013
GreenBean's Avatar
Executive [VIP]
 
Join Date: Sep 2007
Posts: 42,043
Thanks: 5,509
Thanked 9,021 Times in 7,036 Posts
Activity: 31%
Longevity: 95%
iTrader: (6)
Default re: Opening A Lot of Bank Accounts= does it effect Credit?

Gearing the info towards USA based sellers. Other countries have similar conditions

Each and every application for a bank account is treated differently.

Banks operate within guidelines.

Customers are treated differently, however.

Majority of users are not credit-impaired. Some are.

For anyone considering running multiple accounts, they are advised to obtain their FREE credit report every 12 months.

Maintain control of your OWN scores. Make sure that nothing sinister has ever gone onto your report simply because you spoke to a bank regarding obtaining an account.

Read thro' the below site.

Be aware of your rights under USA Federal Law.

Free Credit Reports | Consumer Information

Reply With Quote
  #10  
Old 09-23-2013
Junior Member
 
Join Date: Feb 2011
Posts: 192
Thanks: 1
Thanked 36 Times in 33 Posts
Activity: 0%
Longevity: 68%
iTrader: (1)
Default Re: Opening A Lot of Bank Accounts= does it effect Credit?

I get my credit score few times a month. Worth the cost. I yet have it effect credit opening bank account but I always deny overdraft service if given that option.
Reply With Quote
The Following User Says Thank You to jjohnson777 For This Useful Post:
madmuppet303 (09-24-2013)
  #11  
Old 09-23-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,219
Thanks: 895
Thanked 4,060 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default Re: Opening A Lot of Bank Accounts= does it effect Credit?

If you want to know how your credit score is calculated, FICO has a good article explaining it:

FICO Credit Score Chart: How credit scores are calculated

Keep in mind this is GENERAL INFORMATION. Each credit bureau has its own scores, and also uses different models for different markets. A credit score is used primarily to predict the likelihood of default on a specific type of account. So, your FICO mortgage score may be a little bit different from your FICO utility or FICO credit card scores.

FICO is the most widely used credit score, especially by mortgage lenders.

Generally speaking, inquiries don't have much of an effect on your score, unless there are a LOT of them.
Reply With Quote
  #12  
Old 09-23-2013
Banned
 
Join Date: Apr 2009
Posts: 8,611
Thanks: 1,580
Thanked 2,025 Times in 1,355 Posts
Activity: 0%
Longevity: 82%
iTrader: (47)
Default Re: Opening A Lot of Bank Accounts= does it effect Credit?

Most hard inquiries hit you for 5-10 FICO points so like Jeff states add a ton of them and you will get a hit on your score and lenders will see you as wanting to pile up debt.
Reply With Quote
  #13  
Old 09-24-2013
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 58,567
Thanks: 4,633
Thanked 7,146 Times in 6,512 Posts
Activity: 100%
Longevity: 77%
iTrader: (7)
Default Re: Opening A Lot of Bank Accounts= does it effect Credit?

Agreed - if applying for credit, a lot of hard pulls will bring you down quickly.
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Opening bank or prepaid bank-backed accounts online xdirc Subscriber Discussions 1 08-22-2011 03:53 PM
Opening LOTS of bank accounts can get you banned from opening ANY accounts! yougotit Paypal Limited 41 07-08-2011 07:13 PM
Since when do banks look at your credit score when opening accounts? StillersFan Credit Card Alternatives 7 07-03-2010 12:48 AM
Does having too many bank accounts effect your credit score? phson01 Amazon 8 05-15-2010 10:23 AM
Doesn't opening new bank accounts hurt your credit score? aejacks8 Credit Card Alternatives 11 05-13-2010 06:23 PM


Aspkin Group

All times are GMT -5. The time now is 01:59 PM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts