Does bank switching affect your credit score?

Woman looking at phone with credit score on it — *Various banks and building societies have offered bank switching bonuses but what is the impact on your credit score?*

(Image credit: tolgart via Getty Images)

Banks and building societies often try to lure customers in with lucrative switching offers – but what are the effects on your credit score?

The total number of people using the Current Account Switch Service (CASS) hit 1.05 million in 2025 – the third year in a row the number of switches has reached seven figures.

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The top current bank switching deals are offering customers up to £750 in free cash, and some have made thousands of pounds from hopping between accounts.

Does bank switching affect your credit score?

The main issue to be aware of if you’re considering a switch is any impact it could have on your credit score.

When it comes to applying for financial products and lending, there are two types of credit checks – soft and hard.

What is a soft credit check?

A soft credit check is a light touch preview by a lender of your credit worthiness without a full check, and as such doesn’t leave a trace behind that could impact your credit score.

They are often used by lenders or a comparison website to give you an idea if you’re eligible for some kind of borrowing – such as a loan or mobile contract – before you formally apply and to help you compare credit products available to you.

What is a hard credit check?

A hard credit check can only be completed with your permission when you make a formal application for credit. It involves a review of your credit report and may affect your credit score.

John Webb, head of consumer affairs at credit reporting agency Experian, said: “Applying for any kind of credit, even a current account, usually involves a credit check that leaves a hard search on your credit report.

“Lenders can see these, and several switches close together may suggest you’re under financial pressure – so they could lower your score. It’s generally a good idea to space them out as much as possible.”

Can you open a bank account with a soft credit check?

There are some banks that allow you to switch and open a current account with only a soft credit check.

However, this is usually just for an account. If you want to gain access to any additional features, such as an overdraft, it’s likely you’ll need to do a hard credit check.

CASS says the credit scoring impact of switching normally lasts up to six months after which it disappears off your record, however multiple switches within a six-month period will mean your credit score takes longer to return to normal.

CASS also says a full switch may be better for your credit score than applying for an additional account to the one you already hold. It says this is because closing your original account can lead to a net positive contribution to your rating.

After a switch takes place, the organisation says your credit score will be protected by your bank or building society if any issues disrupt any standing orders or direct debits that are due to come out of your account.

Does loyalty pay?

There are many reasons why it can be convenient to remain loyal to your bank or building society.

For example, your current provider may have a conveniently located branch, their service could be exemplary, or you may simply trust them with your money.

In some cases, it can really pay to stay. For example, banks will often only offer you access to a savings account with a bumper rate if you’re an existing customer.

In recent years, millions of Nationwide customers have had an incentive to stick around, as they could get a £100 annual member bonus via the Fairer Share Payment. The bonus has been paid to eligible customers for three years in a row but it’s not guaranteed, and there are eligibility rules so you might not qualify straightaway if you switch your current account.

Loyalty might help your credit score too. Experian told MoneyWeek that it attributes credit score points based on the average age of the accounts a person holds. So, accounts that have been kept open for longer can have a positive impact on your report.

Is switching worth it?

While the free cash offered as a switching bonus is certainly attractive, it’s also worth weighing up whether your existing account really delivers for you when it comes to perks (e.g. cashback and exclusive accounts), interest rates and customer service. If another account scores well on all of these metrics and offers a switching bonus too, it’s definitely worth considering.

On top of the pros and cons of the account, you should also think about whether you will need your credit score to be at its best over the next 12 months. For example, if you have a mortgage application coming up, it may be a good idea to hold off switching until it’s done.

Craig Tebbutt, financial health expert at credit rating agency Equifax, said: “If you’re applying for a mortgage, it is usually best to avoid unnecessary switches beforehand as underwriters prefer stability and may scrutinise recent account changes, searches or overdraft use.”

It is worth considering that under the Current Account Switch Guarantee, any charges or interest incurred due to issues with your switch will be refunded. Your new bank will also decide whether you should receive compensation over and above this amount.

Of all UK current accounts, over 99% are covered by CASS, so it is unlikely the current account you want to switch to won't be covered by this guarantee.

Sam has a background in personal finance writing, having spent more than three years working on the money desk at The Sun.

He has a particular interest and experience covering the housing market, savings and policy.

Sam believes in making personal finance subjects accessible to all, so people can make better decisions with their money.

He studied Hispanic Studies at the University of Nottingham, graduating in 2015.

Outside of work, Sam enjoys reading, cooking, travelling and taking part in the occasional park run!