Credit Rating: How it works and How to improve it discussion area

huddersfield_andy

recently my partner applied for a new credit card and added me as an additional card holder. i have not used this and am worried that it will show upon my credit history. my mortgage deal is due up in 2011 and as i am self employed i want to make sure that my credit score is good.

as i am an additional card holder will this show up on my credit score or just my partners ?

Moggles_2

huddersfield_andy wrote: »

Recently my partner applied for a new credit card and added me as an additional card holder. I have not used this and am worried that it will show upon my credit history. My mortgage deal is due up in 2011 and, as i am self-employed, i want to make sure that my credit score is good. As i am an additional card holder, will this show up on my credit score or just my partners?

The account will show on your partner's file only, because the card and statements are in their name.

Credit cards cannot be held jointly. The principle card holder remains solely liable for the debt. The fact that you have an additional card on their account neither helps nor hinders your applications for credit

rash.m2k

Does my credit file show if I'm employed or not?

CannyJock

rash.m2k wrote: »

Does my credit file show if I'm employed or not?

No, but if you put on your applications false employment details you leave yourself open to fraud investigations.

savagej

Moggles wrote: »

The account will show on your partner's file only, because the card and statements are in their name.

Credit cards cannot be held jointly. The principle card holder remains solely liable for the debt. The fact that you have an additional card on their account neither helps nor hinders your applications for credit

Yes it does, the bank may well financially link the two people and it is now very common in this economic climate and it will show you have a financial link on you report. You will then have to ask the other person to get a copy of their report to see what adverse data if any is on their.

The bank will argue it is in both the banks and you interest, you dont want a secondary card holder with a bad credit record or record of fraud running up a big bill, which you will only be liable for do you?

Many banks these days ask the secondary cardholder to fill in an application form and sign the same data protection act you did with respect to checking CRA's and FPA's

Hope this helps.

CannyJock

savagej wrote: »

Yes it does, the bank may well financially link the two people and it is now very common in this economic climate and it will show you have a financial link on you report. You will then have to ask the other person to get a copy of their report to see what adverse data if any is on their.

The bank can't decide on a whim to financially associate people who have no joint financial products and credit cards, at the moment certainly, can't be joint.

savagej wrote: »

The bank will argue it is in both the banks and you interest, you dont want a secondary card holder with a bad credit record or record of fraud running up a big bill, which you will only be liable for do you?

They can argue all they like but at the end of the day, it's your choice. Otherwise, are you saying that you're liable for the spending on the primary card and the secondary cardholders are liable for the spending on the secondary cards? I can't see how they can enforce this on a single account.

savagej wrote: »

Many banks these days ask the secondary cardholder to fill in an application form and sign the same data protection act you did with respect to checking CRA's and FPA's

I've never heard of it happening, but be interest if it is. Surely you'd just decline their request? Otherwise you'd be as well just applying separately.

Arthurian

Using the Credit Checker Tool, question 3 asks "How many credit accounts (e.g credit/store cards, mobile phone contracts, loans, mortgages or current accounts) have you applied for in the last 6 months? "

Question 9 asks "Have most of your credit accounts been opened in the last 18 months?"

Does question 9 include an implied reference to current accounts? It seems keeping a close watch on the current best rates for savings and swapping money around the best accounts, as happens frequently on the savings and investments board, can impact negatively on credit ratings, as opening a new savings account with a new institution often means having to open a current account with them, too.

Could someone please clarify?

CannyJock

Arthurian wrote: »

Using the Credit Checker Tool, question 3 asks "How many credit accounts (e.g credit/store cards, mobile phone contracts, loans, mortgages or current accounts) have you applied for in the last 6 months? "

Question 9 asks "Have most of your credit accounts been opened in the last 18 months?"

Does question 9 include an implied reference to current accounts? It seems keeping a close watch on the current best rates for savings and swapping money around the best accounts, as happens frequently on the savings and investments board, can impact negatively on credit ratings, as opening a new savings account with a new institution often means having to open a current account with them, too.

Could someone please clarify?

Question 9 would include current accounts.

It's not opening an account that makes a difference, or moving money between institutions, it's the credit search they make when you open a current account that affects your score.

I've opened a load of current and savings accounts this year and it has affected my credit score - but only for 6 months until the searches become "less recent".

EDIT: From my current Experian summary:
Other important items that could affect your credit rating


Credit report searches
Whenever your credit report is searched a record is left on your report. Some search records such as those left after you apply for credit can be seen by lenders who will use this information when assessing your creditworthiness. Try not to make lots of credit applications over a short period of time as this may lower your credit rating.
Other types of search records, such as those left after you have an identity check performed on you when you apply for a job, are not visible to lenders and will therefore not affect your credit rating.
Checking your own credit report does not leave a search that lenders can see, so you can check your own report as often as you like, it will not lower your credit score.


Number of times your credit report has been searched in the past 3 months................7
Number of times your credit report has been searched in the past year......................18

Moggles_2

Arthurian wrote: »

Question 9 asks "Have most of your credit accounts been opened in the last 18 months?" Does question 9 include an implied reference to current accounts? It seems keeping a close watch on the current best rates for savings and swapping money around the best accounts, as happens frequently on the savings and investments board, can impact negatively on credit ratings, as opening a new savings account with a new institution often means having to open a current account with them, too. Could someone please clarify?

Yes, any product or service which provides credit facilities can affect your credit rating, so this is worth bearing in mind when you open new bank accounts.

That said, at any one time there are usually competitive, stand alone savings accounts available and these have no effect at all, as I think you realise

score

CannyJock wrote: »

Question 9 would include current accounts.

It's not opening an account that makes a difference, or moving money between institutions, it's the credit search they make when you open a current account that affects your score.

I've opened a load of current and savings accounts this year and it has affected my credit score - but only for 6 months until the searches become "less recent".

Hi
I thought that savings accounts are not credit searched, has this changed?