There once was a time that, if you wanted to switch your bank account to another provider, the switching process could take up to 6 weeks for it to complete. This was ridiculous; in essence you were using two accounts for this period because you were in a state of limbo. Errors were not uncommon and it could leave you with no access to any money at all.
This process has recently changed; no longer will you be subjected to the lengthy delays of the past. The time has come when you can move accounts quickly and easily.
It is now possible, with a push from the government, that banks can move your accounts from one institution to another within 7 working days. This gives you the flexibility to move to a provider that will offer you value for money.
This gives you back control of where you have your money, there are many different banks that offer great customer service. But those that offer poor service have previously been safe from people being able to leave because of the amount of time that it took. Now you can show the bank what you truly feel because you are able to change your bank relatively easily.
Word of caution
As with all great things there is a negative side to this. It is important and one that you need to think about. If you move banking institutions and apply for credit, even in the form of an overdraft, this is going to show on your credit file.
If you are hoping to purchase a big item in the future, like a new car or move home, you will need to be extra cautious when it comes to any negative impact on your credit report. Negativity can affect the offers that you receive; you might end up paying a higher rate of interest, than previously.
It is a great idea to be aware of what is on your credit file. This can ensure that you are on the right track financially and that there are no errors. Errors need to be addressed quickly before it effects your future options.
If you have had problems in the past with payments of bills then these could show on this report. It is the information that the credit file companies hold on you that can determine the interest rate that you are offered for a loan or credit card. If you are looking for great rates then make sure that your credit file is the best that it can be possible.
You can improve a credit report by paying bills on time and not apply for more credit than you can afford. Don’t just close credit cards when they are cleared this can damage your rating, especially if you are in the market for more credit in the future.
Companies are looking for responsible people with whom to lend money. They are not out to take too many risks, they want you to pay the money back that you borrowed, plus the interest.
So, when you are looking to move banks, only do so if you are not planning a big expense in the next few months. You might end up paying more than you needed to in interest payments.