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Email this8:41 pm
July 5, 2016
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Hello All,
I'm chasing savings accounts and interest rates, but as you all know, it seems like every so often a different bank emerges with a more competitive rate. Here are my questions:
1) Does it affect your credit score if you constantly open/close accounts in order to maximize interest?
2) Does it affect your credit score if you have a lot of accounts as a result of the above question?
Thanks.
6:32 pm
April 6, 2013
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Canadian credit reports don't show savings and chequing accounts. So, the answer to question #2 is no, number of savings accounts does not affect credit score.
The answer to question #1 depends on the type of credit inquiry, if any, that the financial institutions do when the accounts are opened. If one opens a savings account in person and presents government ID, no credit check is needed to verify identity.
When the account is opened online, the financial institution does a credit inquiry to confirm identity. A "soft" credit check is only visible to you and not to other creditors. That won't affect your credit score. A "hard" credit check is visible and can affect credit score.
AfterBankruptcyCanada.ca article What’s the difference between a Hard vs Soft credit inquiry? has more details.
7:26 pm
July 5, 2016
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thank you!
11:10 pm
February 17, 2013
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Norman1 said
AfterBankruptcyCanada.ca article What’s the difference between a Hard vs Soft credit inquiry? has more details.
Thanx for the link Norman1. When I requested my credit report a couple years ago, I was rather surprised to see that Amex was doing a soft check on me EVERY month. Wasn't sure until now what it meant or why they would do that.
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