Does Having Multiple Bank Accounts Affect Credit Score

Does Having Multiple Bank Accounts Affect Credit Score

Opening multiple bank accounts is a common practice in the UK. Many people use separate accounts to budget, save, or manage different financial goals. But if you're managing more than one current or savings account, you may be wondering: does having multiple bank accounts affect your credit score?

The short answer is no, having multiple bank accounts does not directly affect your credit score. Credit reference agencies do not consider the number of current or savings accounts you have when calculating your score. However, the way you manage these accounts and any credit facilities linked to them can influence your credit file and how lenders perceive you.

This article explains how multiple bank accounts interact with your credit report, when they could indirectly affect your score, and how to use them wisely to support your financial health.

What Is and Isn’t Reported on Your Credit File

UK credit reference agencies such as Experian, Equifax and TransUnion do not report your bank balances, savings activity or the number of current accounts you hold.

What they do report includes:

• Credit cards

• Loans

• Mortgages

• Overdrafts (if used)

• Mobile phone contracts

• Utility and broadband credit agreements

• Payment history and defaults

• Electoral roll status

• Credit applications and searches

So, opening a new bank account that doesn’t include a credit feature will not appear on your credit report and does not affect your credit score.

When Multiple Bank Accounts Might Affect Your Credit Score

While the accounts themselves are not reported, certain aspects of how you manage them can have an impact:

1. Applying for multiple overdrafts
If each current account has an overdraft facility and you use them all, your credit report will reflect this. High or persistent overdraft usage increases your overall credit utilisation, which can negatively impact your score.

2. Hard searches during account opening
Most banks do a soft check when you open a current account without an overdraft. However, if you apply for an overdraft or packaged account, the bank may perform a hard search, which can temporarily lower your credit score.

3. Missed payments on related products
If you set up direct debits from one of your bank accounts to pay credit card bills or loans, and the account does not have enough funds, missed payments on the credit product — not the bank account — can harm your credit file.

4. Appearing financially overextended
If you apply for credit and the lender sees that you have several open overdraft facilities across different bank accounts, they may be cautious. Even unused overdrafts are considered potential borrowing and can affect affordability assessments.

Real-World Example

Tom has four current accounts — one for bills, one for savings, one for everyday spending and one for travel. None of them have overdrafts, and he maintains small balances in each. These accounts are not reported to credit agencies, and his credit score remains unaffected.

By contrast, Lisa opened three accounts within six months, each with a £1,000 overdraft. Although she didn’t use them initially, the unused credit limits were factored into her affordability checks when applying for a loan, which affected her approval chances.

Benefits of Having Multiple Bank Accounts

When used properly, having more than one bank account can improve your financial management and even support your credit indirectly:

• Helps with budgeting by separating spending from bills or savings

• Reduces the risk of missed payments if you dedicate an account for direct debits

• Improves money organisation, making it easier to stay in control of your finances

• Allows access to better interest rates or cashback offers by using different banks

Good money management often leads to fewer missed payments and lower credit card reliance, both of which are beneficial for your credit score.

Tips for Managing Multiple Bank Accounts Effectively

• Avoid applying for overdrafts unless necessary

• Use direct debits to automate bill payments from the account you regularly fund

• Check account activity regularly to prevent overdraft use or missed payments

• Close unused accounts if you no longer need them, especially if they have inactive overdraft facilities

• Keep your income and expenses clear and traceable across accounts

Do Savings Accounts Affect Credit Score

Savings accounts are not credit products. They are not reported to credit reference agencies and do not influence your credit score directly. However, having a healthy savings habit shows lenders that you’re financially responsible, even if it doesn’t appear on your credit file.

Some digital banks and fintechs offer savings tools within current accounts, which can help you reduce reliance on credit and support a more stable financial profile.

Final Thought

Having multiple bank accounts does not affect your credit score directly, as credit reference agencies do not track or score the number of accounts you hold. However, the way you use those accounts — especially if they include overdrafts or are linked to payment issues — can influence your credit file and future credit applications.

If you manage your accounts well, avoid excessive borrowing, and keep on top of your bills, multiple bank accounts can be a helpful tool in your financial toolkit.