Named on Second credit card, will it affect credit score?

paracelus

A friend was named on a second credit card, but isnt the original account holder. If the account is in serious debt, will it affect the friends credit rating?

savagej

It might do, it depends on the bank. Some add a financial link between secondary cardholders some dont. You would need to get a copy of your CRA files to check.

paracelus

if they didn't sign anything to get the card, is it likely that the bank could set up that financial link?

Paul_Herring

savagej wrote: »

Some add a financial link between secondary cardholders

Since any subsequent card holder is not responsible for any debt, how do they justify creating that link?

never-in-doubt

Paul_Herring wrote: »

Since any subsequent card holder is not responsible for any debt, how do they justify creating that link?

Because the CRA has a duty to post any financial link that may be relevant so lets say Mr Bloggs applies to have his wife added, who has loads of defaults, the creation of the association would mean should Mr Bloggs apply for credit, the wifes file could be looked into and a decision based on those findings if there is a financial link....

I don't support it and agree, the wife may have to sign terms before getting an additional card that states a link may be created, without which all links would appear only on Mr's file as there would be no authority to add data to the credit file belonging to Mrs.

That's my interpretation but to my knowledge only a couple of banks/lenders actually link this way; M&S being one and Amex being the other unless anything has changed in last few months....?

bingy_burge

my other half is named on one of my cards but since we have a joint acc I dont worry.

savagej

It is to protect the creditor, if they give out a second card to your partner and they did not know your partner was "up to their neck in debt" and then runs up your card causing you problems in repaying your debt, it then becomes in the lenders best interest to create a link. That is why I think it is done, in addition to the names NID mentioned Sainsbury's Bank state they do it in their T&C's.

never-in-doubt

savagej wrote: »

That is why I think it is done, in addition to the names NID mentioned Sainsbury's Bank state they do it in their T&C's.

Thanks - wonder if this includes the whole HBOS (Halifax) range or specifically Sainsburys...?

savagej

I have not seen it on the others just on the Sainsbury's Credit Card app. I suppose it depends how much influence Sainsbury's have over their own bank???

Paul_Herring

never-in-doubt wrote: »

That's my interpretation but to my knowledge only a couple of banks/lenders actually link this way; M&S being one and Amex being the other unless anything has changed in last few months....?

Amex haven't linked me and the second card holder on my account.

never-in-doubt

Paul_Herring wrote: »

Amex haven't linked me and the second card holder on my account.

Ok thanks - so that means just Sainsbury & M&S then unless anyone knows of others...