Martin Lewis warns Santander, Nationwide, NatWest customers switching bank account

Martin Lewis has issued a warning to anybody switching their bank account. A series of high street leading banks are offering free cash to switch currently, including Nationwide, NatWest, Lloyds, Santander and also First Direct, Mr Lewis has said.

But the BBC Sounds star has urged bank account holders to think carefully before committing to the switch. "If you do one switch, it's an application on your credit file which has a very minor, short-term negative effect," ITV regular Martin said.

The 52 year old Money Saving Expert went on, saying: "Lots of those in a short space of time can be an impact. Banks also like to see evidence of longevity, so that's also slightly negative. So I wouldn't switch my bank account if I had a mortgage application during the next two months."

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However, if the above scenario doesn't apply to you, the expert says it's only a 'very minor' hit on your credit score, which probably won't affect you in the long run. "Switching very regularly to make money can have a bigger impact," he added to his subscribers.

"Do you have a use for your credit working? Do you have a debt application you want to make, or a mortgage application you want to make? No, well, in which case it'll have an effect, but why do you care?" he also asked them, in a rhetorical question.

MSE explains: "If you're rejected, it could be for one of many reasons, for example... you've got a poor credit record, you've had past dealings with that bank where you've missed payments or the bank doesn't think you'll be a profitable customer. But don't assume because one bank doesn't want you, none of the others will. All the same, don't just apply everywhere as it can do more damage to your credit record.

"Instead, you need to do two things – first, ask the bank why it rejected you. Its answer may be vague, but it should tell you if you were rejected because of your credit record."