Number of bank accts?

[sycotik]

  I have found alot of useful information on these boards and for that I thank everyone.  I am starting to work or my score (652) and now I am wondering what I should do about my bank accts.  I only have 2 right now.  I have one acct with BBT (checking, savings, auto loan, CC) and one with a local CU (checking, savings, CC).  Now I am thinking about opening a NFCU account to at least refinance my car (10.99% with BBT) and maybe get a checking acct  and CC through them.  What would be the best way to do this?  I hate to have my money spread between 3 different places.  Or is this what I should do?  I dont want to close the other CU accts as they have been my longest running (since 2002).  Should I leave a minimum in those accts just to keep it open and forget about them? 

  The reason I am opening another CU acct is that the current one is very, very small and barely has a website.  Also, I have some family members working there and I hate to mix family with finance.  I just found out that I qualify for the NFCU acct and it looks like a right fit for me.  Any suggestions on how I should go about this or is it all just a personal preference?  What would you do?

Thanks much.

[Anonymous]

Checking and savings have nothing to do with your CR or scores!!!   What matters is the amount of revolving accounts and the UTIL and payments.The same with installment account (UTIL doesn't count)

[sycotik]

So what you are saying is that closing my checking and savings acct and combining them into a new acct at a separate CU will not hurt anything?  As long as I keep the CC's open and current everything else is a moot point?  What about the installment payment?  Would it change at all in regards to time or anything at all?  Sorry for all the questions...

Thanks again.

[llecs]

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sycotik wrote:

So what you are saying is that closing my checking and savings acct and combining them into a new acct at a separate CU will not hurt anything?  As long as I keep the CC's open and current everything else is a moot point?  What about the installment payment?  Would it change at all in regards to time or anything at all?  Sorry for all the questions...

Thanks again.

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Yep. Checking and savings accts have no bearing at all on your CRs or your FICO score (so as long as you don't default or overdraft and let it get CO'd).

Installment? If not reporting, then there's no issue. If open and reporting as a loan (installment loan), then paying off the loan and closing it can impact your score if reporting. FICO likes to see a mix of credit and paying off and closing an installment loan can drop your score by a little if that was your only loan.

Opening a new loan to pay off the old will also drop your score as FICO doesn't like to see new accounts. Moreover, aside from CC utilization, there is also an installment utilization. If you PIF the old loan with a new loan you'll see a drop in score due to the higher util.

[marty56]

If you open a new bank account, you will most likely get an INQ on your CR.  I dont know if CUs do this but most large commerical banks do these days.

[Anonymous]

sycotik, never be sorry for asking questions!!

[smallfry]

BofA and Chase were both soft pulls to open checking accounts. Wachovia was a hard pull on Equifax. 

[Anonymous]

The reason for inquiries when opening a checking account is usually due to the "overdraft protection" you get with it.

[Anonymous]

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@Anonymous wrote:
The reason for inquiries when opening a checking account is usually due to the "overdraft protection" you get with it.

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The Credit Union I joined in Nov, was a hard.  I was told if I applied at the Credit Union it would be a hard, even if all I did was open the checking account and the share savings.  

[smallfry]

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@Anonymous wrote:
The reason for inquiries when opening a checking account is usually due to the "overdraft protection" you get with it.

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Did not apply for or receive overdraft protection on my Wachovia checking account. Some pull hard some do not.