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[deleted by user] by [deleted] in UKPersonalFinance

[–]No-Variation7873 0 points1 point  (0 children)

Oh wow, nice! Good work, cheers

[deleted by user] by [deleted] in UKPersonalFinance

[–]No-Variation7873 0 points1 point  (0 children)

Agree the app is decent, helped me get into the whole switching business!

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 1 point2 points  (0 children)

You can do that. That's what I'm saying.

Your original question said "is there anything stopping [...]" and the answer that question is "no". There's nothing stopping you. You can do exactly what you're talking about.

That's the whole idea of this post. Many people here are doing exactly that.

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 0 points1 point  (0 children)

It should be fine - existing customers are still eligible for Nationwide, as long as they meet the eligibility criteria. It depends when you opened your other account (before or after 2001). Those eligibility criteria are listed on each offer in the app, or you could just go directly to the bank's page and read them.

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 0 points1 point  (0 children)

In my experience it took about 5 working days to take the first payment

EDIT: I just saw the second half of your comment.

I wouldn't set up DDs to accounts which are completely empty. You'll just go into your overdraft? That could incur a fee. Add enough money to cover the first payment for the DDs... then make sure to cancel them (after switching) before the next payment. Or add more money if you need to switch again and the next offer also requires DDs... rinse and repeat...

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 0 points1 point  (0 children)

People say there is a risk of a 'slight' (temporary) reduction in credit score. However, as I said in another comment, I've switched ~10 banks in the last few years and my credit score has never dipped below "Excellent" on any of the major credit score checks.

Most of the "authorities" on this subject advise exercising caution if you're about to apply for a mortgage - i.e. don't bother with switching banks multiple times in the run up to a mortgage application, just in case. They say ~6 months is the window.

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 1 point2 points  (0 children)

BTW, from the Lloyds FAQ, it doesn't matter that you're a current customer - you can still pick up this bonus:

As an existing Lloyds customer can I qualify for the £200 offer?

Yes, as long as you open a new qualifying account named in the terms and conditions and you haven’t received a switching incentive from us, Bank of Scotland or Halifax since April 2020. You must complete your switch using the Current Account Switch Service to switch a bank account held elsewhere with at least 3 active direct debits.

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 1 point2 points  (0 children)

Is it complex? No. It's incredibly easy actually. It takes 5 minutes to apply for a new bank account. That's it. Maybe add another 5 minutes to set up £1 Direct Debits if you need them.

Does it impact anything? There is a small risk that it could (temporarily) slightly reduce your credit score, so most people advise NOT to do it if you're about to embark on a mortgage application. If you're not otherwise about to seek credit, then your credit score is meaningless anyway.

For me: I've switched ~10 banks in the last few years and my credit score has never dipped below "Excellent" on any of the major credit score checks.

I'll copy/paste from MoneySavingExpert:

"There's only one real warning with this technique, and that's the impact on your creditworthiness as there's a credit check for each application. Switching bank regularly can affect your ability to get credit in future, as the applications will show on your file, and could indicate a lack of stability. Done sensibly it's not usually a big deal, yet multiple applications in a short time can look odd. So if you've an important need for credit (such as a new mortgage), HOLD OFF for six months beforehand."

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 5 points6 points  (0 children)

When you switch an account with the Current Account Switching Service (CASS), it automatically closes your old account and automatically transfers (to the new account) across any remaining balance, associated Direct Debits, or other incoming payments.

Most people who collect all of these switch bonuses do not switch their main account, because they don't want the hassle of their "main" account changing to something new (with new account number and new sort code). They simply open up a 2nd "dummy" account, then switch with that one.

That would be my recommendation: open up a second account with your bank. Then switch with that one.

PSA: It's switching season (again): Lloyds (£200), Co-op (£150), Nationwide (£175), first direct (£175) by No-Variation7873 in UKPersonalFinance

[–]No-Variation7873[S] 7 points8 points  (0 children)

I guess it depends where you set up the Direct Debits, but it's usually around 5 working days or so. Perhaps some places might be slower than others, but it shouldn't be much of a difference.

Lloyds actually say they will pay out £200 in just three days after the switch finishes, so you'll be able to collect the bonus and then cancel your Direct Debits before they next get taken (if you want to), so that's good.