Martin Lewis warns Nationwide, Santander and NatWest banking customers of potential risk

Martin Lewis has alerted Nationwide, Santander, and NatWest banking customers of a potential risk as the festive season approaches. The Money Saving Expert founder cautioned individuals about the impact on their credit scores when switching banks for cash bonuses. Though banks like Nationwide, NatWest, Santander, Lloyd’s, and First Direct offer cash incentives ranging from £150 to over £200 for switching accounts, Martin Lewis emphasised that frequent switching can have negative effects on credit scores. He explained that while one switch may have a minor negative effect, multiple switches within a short period could be detrimental as banks prefer to see long-term relationships with customers.

Mr. Lewis advised caution, especially for those planning to buy a house soon, as frequent switching could affect mortgage applications. He further stressed the importance of understanding why a bank rejected an application, as it could be due to a poor credit record or past missed payments. Martin Lewis concluded by warning against applying to multiple banks at once, as it could harm credit records. Instead, he recommended seeking feedback from the bank and understanding the reasons for rejection.

It’s crucial for customers to weigh the short-term benefits of cash incentives against the potential long-term impact on their credit scores and financial stability. Martin Lewis’ expert advice serves as a reminder to consumers to make informed decisions when it comes to managing their finances and banking choices, especially during the holiday season.