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Using Multiple Banks for Credit Cards, Current A/Cs and Savings

  • 28-10-2015 9:29am
    #1
    hada
    Registered Users, Registered Users 2 Posts: 699 ✭✭✭


    Hi all,

    In an effort to get more prudent with the way I use my money, I have "diversified" the banks with which I deal with for different aspects of my finance.

    I'm using one bank for current account, and another for savings (highest interest rate) and credit card (lowest APR). I also have a very small overdraft facility with on my current account linked to my savings account, that I plan on using (a/c is currently zero), and then paying back - as an alternative to using the CC where I can.

    I guess my question is, is this approach prudent or should I just remain with one bank for all of my services? I am thinking more down the line when I eventually look to get a mortgage, car loan etc. As of now, I have no credit card debts, a very steady income and building savings each month (albeit between two different banks).


Comments

  • #2
    JTMan
    Registered Users, Registered Users 2 Posts: 5,558 ✭✭✭JTMan


    You are taking the correct approach.

    There is no advantage in having all your services with one bank. When you apply for a mortgage, records can easily be obtained from other banks.


  • #3
    wench
    Registered Users, Registered Users 2 Posts: 1,663 ✭✭✭wench


    hada wrote: »
    I also have a very small overdraft facility with on my current account linked to my savings account, that I plan on using (a/c is currently zero), and then paying back - as an alternative to using the CC where I can.
    I wouldn't do this.
    Using and paying back your credit card is viewed as a sign you can manage your money, being regularly in an overdraft - even an authorized one - is a sign you can't.


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭coylemj


    wench wrote: »
    I wouldn't do this.
    Using and paying back your credit card is viewed as a sign you can manage your money, being regularly in an overdraft - even an authorized one - is a sign you can't.

    Using an overdraft facility now and again and never exceeding the limit counts as borrowing money and paying it back and will not have a detrimental effect on your credit record.

    BoI told me a long time ago that as long as my current a/c was in the black once a quarter, I could use the overdraft facilty as much as I wanted to and it wouldn't be used against me when applying for a loan.


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