Tips For Switching Accounts
People are often told that switching bank accounts is the best way to get a good deal. However, customers are often hesitant, and may be missing out on the best deals due to the fact that they have a feeling of loyalty to a particular brand, or may have the opinion that switching could be difficult or inconvenient. However, with the right approach it is possible to find the ideal account and move over to it.
The Current Account Switch Service was set up in 2013 in order to make it easier to change over to different accounts. For example, when the switchover occurs, any standing orders, direct debits and so forth should automatically be part of the transfer.
It is fair to say that when you do switch this will affect your credit rating. However, it will not be that much of a reduction, and with a few sensible steps you will be able to boost it back to a regular level without too much effort in the process. This is why before you do a switch it is important to check that your credit history is up to date, correcting any errors or outdated information that could negatively affect your rating.
It is also a good opportunity to look at your outgoings- for example if there is a magazine you no longer subscribe to, or you are not going to the cinema often enough to justify a monthly pass. It may sound obvious, but when you take a look at the figures it can make a big difference.
Read the small print
As with any product comparison, you need to think carefully about what you are switching to. An initial rate may look attractive, but how long will it last for? Using a rate calculator will allow you to look at the numbers, helping you to decide if the rate is worth the effort to change over to a different bank or lender.
It is also worth checking to see what additional services are included. For example, if you get cashback on purchases, free cinema tickets or insurance then this could be deciding factors. However, it is important to consider the whole picture before making the final decision.
Finally, although it may sound obvious, when you have the made switch make sure that the old account has been cancelled! Inevitable there may be other issues, which although in theory should not happen it is important to check. For example, you want to be certain that any direct debits or standing orders you use to pay rent or phone bills have put in place, to prevent problems later on.
It is easy to feel overwhelmed when it comes to choosing the right account. Larcomes Financial Services has the resources and the experienced team available to guide you through the options available to you, tailoring advice to suit your personal and financial circumstances. To find out more, contact us today and we will be happy to discuss you needs in more detail.