Opening a new Current Account to Use as a Donor Account

A question about : Opening a new Current Account to Use as a Donor Account

Hiya,

Apologies if this is been asked before.

I am planning to apply for a Halifax Rewards account and would like to get the Ј100 switch bonus. However, I'd like to keep all my existing current accounts for various reasons.

Is it a good idea to open a new current account with one of my existing banks and then use it as a donor account for the switch to Halifax?

Has anyone done this?

Is there any way to opt out from getting the debit card etc. for this new account (because I won't be using it)?

How long do you have to wait before initialing the switch?

Is there any chance this will negatively affect my credit worthiness or my standing with the old bank?

Sorry, lots of questions; really appreciate your help.

Best answers:

• To answer your questions:
  1 - Can be done and people have. Can't say if a good idea for you.
  2 - The account application may allow you to opt out but many switching forms ask for debit card details.
  3 - As soon as you have the account / card details.
  4 - The new provider will probably run a credit check; this can have an effect on general credit standing if already borderline or poor.
  Quote:
• Ref Q2: you can just cut up/shred any DC if you don't want to use it, or keep it in a safe
  Ref Q4:your credit worthiness really only matters if you want credit (mortgage, loan, credit card, overdraft etc), or if you apply for a job that requires a personal credit check. Personally, I don't need/want any of these so I don't worry about any credit searches. If you want to apply for any major credit in the next 6-12 months, or any job that requires a credit check, you should probably take it easy with current account applications. But if you don't, apply away!
  I also don't think multiple well-kept current accounts will damage your credit worthiness as I have lots of them and keep getting guaranteed acceptance credit card offers from the likes of Halifax. Also, my meaningless credit scores at CRAs are as high as credit scores can be.
• I've got a few accounts which I really should close down. I don't use Natwest or Metro anymore, for example.
  I do though, like you, use a primary account (First Direct) along with a donor account, the Halifax.
  Not sure about the other questions you have but the impact of opening another current account on your credit file shouldn't be huge.
• Thanks for the replys guys. Just applied for a new current account with my existing bank and got instant approval. I'll wait for the card and other paperwork to show-up.
  I already have a Halifax Clarity Credit card. Does anybody know if I can upgrade it to a Reward Clarity after getting the Reward current account?
• From Clarity card terms:
  "11.1 ! If you meet the requirements set out in condition 11.2, then for any statement period in which you:-
  (a) make at least Ј300 of Purchases (once any Purchases refunded in that period have beend deducted);
  (b) stay within your credit limit; and
  (c) make your minimum monthly payment;
  you will qualify for a Ј5 credit to your account in the following month. The credit will not be treated as a payment to your account under these conditions.
  11.2 ! To be eligible for the reward set out in condition 11.1, you must, at the time you enter into this agreement:-
  (a) hold a Halifax current account and pay in Ј1,000 or more each month;
  (b) use our switching service to move your current account to a Halifax Current Account and agree to pay in Ј1,000 or more each month;
  (c) open or hold a Halifax Ultimate Reward Current Account."