How it affects your affordability score
Lenders like to see that you aren’t making too many transfers out of your accounts each month. Using Open Banking by linking your account that you move money between helps them understand your spending.
Transfers out - is money sent from your account to someone (for example family, friends, tradesperson).
A transfer in - is money you’ve received from someone’s bank account, including from one of your own accounts. It’s not your salary, benefits or refunds.
Maintain your affordability score
- Link bank accounts that show all your transfers in and out.
- Aim to make fewer transfers out than transfers in each month.
- Use clear descriptions and references with your transfers. For example, when transferring to a savings account, try reference - 'savings'. Other examples include 'child maintenance'/'personal trainer'/'social event', and so on.