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OT - Joint account affecting credit rating

dinyulldinyull Posts: 2,971
edited September 2016 in Commuting chat
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?

Posts

  • davisdavis Posts: 2,505
    Assuming you live together (quite likely!) there's a very strong possibility that the credit agencies have already noticed, and created an association already, not least because of your marriage -- you might have a mortgage together too... Actually you'd be associated with anyone on the electoral roll at that address, unless you create what's known as a "notice of dissociation" (IIRC).

    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)
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  • AnonymousAnonymous Posts: 79,678
    I think you needn't worry. I have a pretty bad credit rating due to 2 default events (due to stupidity, not insolvency) but still have over £10K (unused!) available across 2 CCs and an overdraft.

    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.
  • rick_chaseyrick_chasey Posts: 57,415 Lives Here
    Checking your credit score often will reduce your score.

    Free or not.
  • What's the point of a joint CC again?

    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"?
  • AnonymousAnonymous Posts: 79,678
    No it doesn't.
  • AnonymousAnonymous Posts: 79,678
    Ugo - it can help, but only if you use/repay it.

    Your credit score doesn't need to be perfect to get a mortgage/cc's
  • PufftmwPufftmw Posts: 1,941
    When I parted from she who used to be mrs pufftmw, I continued to enjoy my excellent credit rating despite moving house a few times. She couldn't borrow zip & still couldn't get a mortgage. I can and just have.

    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.
  • drlodgedrlodge Posts: 4,825
    Pufftmw wrote:
    Always get yourself on the Electoral Register, even if for a couple of months.

    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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  • Well worth keeping an eye on your rating - mine's 999 but only after solving some rubbish that had been put on there. It seems like there's not much regulation about this stuff and any cowboy can put stuff on. As part of this process, I did a Subject Access Request on my bank which threw up a load of stuff they had wrong on my account.

    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.
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  • AnonymousAnonymous Posts: 79,678
    Thing is Experian etc don't necessarily use the same files/info as actual lenders (mobile phones may tho) so what Experian sees is only as good as the info as you put in when you up.
  • YIManYIMan Posts: 576
    Not true.

    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.
  • rick_chaseyrick_chasey Posts: 57,415 Lives Here
    Just make sure it's a soft pull not a hard pull.
  • Just make sure it's a soft pull not a hard pull.
    I must have been doing it wrong.
  • Credit rating... it seems like bad company... almost tempted to get a bad one to avoid the social pressure of having to borrow money.

    If you can't get a loan/mortgage, that's a good excuse not to get into debt
  • The RookieThe Rookie Posts: 27,748
    Does she actually have a poor rating? Being in a lot of debt doesn't significantly harm your rating unless you are defaulting or getting a CCJ.

    They will already have noted the same address anyway so as mentioned so many have linked your ratings.
  • dinyulldinyull Posts: 2,971
    Yes, she was flat refused on our joint mortgage 4 years ago. Don't think my rating has suffered too much as I took out a loan for a car a few month back without any problems.

    Anyway, cheers for all your help. Think we've found a way around the problem.
  • thistle_thistle_ Posts: 5,605
    Some banks do a credit check when you open a current account (or at least say they do).
    TSB said they would when I opened an account with them recently - maybe it's because the account comes with an overdraft?
  • drlodgedrlodge Posts: 4,825
    Some banks do a credit check when you open a current account (or at least say they do).
    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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