OT - Joint account affecting credit rating
dinyull
Posts: 2,979
My wife and I are finally looking into getting a joint account but both being a bit cautious because of her credit rating.
Won't go into too many details but after finishing school she got herself into debt having to support her Dad following a messy divorce and him taking it VERY badly.
She has just finished paying off the debt but is worried that if we got a join account my credit rating would be affected. Having had a little look into it, as I read it, my rating would only affected IF we applied for credit together - is that correct?
Won't go into too many details but after finishing school she got herself into debt having to support her Dad following a messy divorce and him taking it VERY badly.
She has just finished paying off the debt but is worried that if we got a join account my credit rating would be affected. Having had a little look into it, as I read it, my rating would only affected IF we applied for credit together - is that correct?
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So, you're probably already linked, so you've probably already experienced the effects.
As for how badly her credit is affected, and therefore what effect it'll have on yours, it might not be all that bad. Experian and Equifax never used to "black mark" anyone simply because they got into debt; there were, in recent history, "plus points" added for getting oneself out of debt.
Things to thing about: how bad was the debt? 5k? 10k? 100k? Were there bailiffs, or CCJs? How long has the debt been repaid for or are you in debt now, including car finance, store cards, and credit cards?
If you're not looking to borrow money soon then honestly it might not matter. If you've got significant debt and you're looking to shuffle money around then it's definitely worth doing whatever you can to improve your rating. Start
here ( you can now see your Experian rating for free with that link)
My girlfriend still has an impeccable rating in spite of my rating and it is with her that I have a mortgage and joint cc, both of which I took out after those 2 events.
For a current account, worst case scenario is that they won't give you an overdraft. If you are married at the same address it is possible they will make the connection.
Free or not.
The bank keeps pestering me to increase my credit limit, but I don't need to... should I do it just because it would look good on my "credit rating"?
Your credit score doesn't need to be perfect to get a mortgage/cc's
Its a bit of a lottery and it pays to look at your online credit rating with the likes of Experion etc.
Always get yourself on the Electoral Register, even if for a couple of months.
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Yes this ---^ I wanted to open a Santander 123 account shortly after moving, tried online and it rejected me. When I went in in person, the lovely lady there suggested to register on the Electoral Register ASAP as without doing so, they wouldn't be able to open an account for me.
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There's a similar database for insurance but you don't get access to that - even though mistakes on it can cost you a lot in insurance premiums.
Experian provides services to lenders so it is lenders that use the compilation of Experian (or similar credit reference agencies)'s information. Your credit score is built up by Experian from multiple data sources - credit records, electoral rolls, fraud databases etc.
If you can't get a loan/mortgage, that's a good excuse not to get into debt
They will already have noted the same address anyway so as mentioned so many have linked your ratings.
Anyway, cheers for all your help. Think we've found a way around the problem.
TSB said they would when I opened an account with them recently - maybe it's because the account comes with an overdraft?
Yes that's correct and probably because of the overdraft facility. Same here when I opened a 123 account shortly after moving. The credit check would have failed if I had not registered on the electoral register.
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